A blog on issues affecting Australia's newsagents, media and small business generally. More ...

retail

Aggressive expansion program from Cotton On

Screen Shot 2015-11-11 at 6.41.17 pmCotton On retail group is opening 150 stores in 120 days around the world. This group, which includes Typo – a major competitor of our channel, is a force to be reckoned with. The growth Cotton On is pursuing is extraordinary in a time when retail is talked down in many media outlets.

From a newsagency channel perspective, we ought to look at the Cotton On expansion as an encouragement for us to embrace change ourselves – change in locations, format and product mix.

There are still too many newsagency businesses today not much different to what they offered ten to twenty years ago. The Cotton On model is to have multiple formats, fresh locations and a pitch relevant to today’s shoppers.

2 likes
retail

My idea for boosting rural and regional Australian economies

I was fortunate to participate in a flight to Longreach, Queensland, on Saturday, raising funds for the Western Queensland Drought Appeal. A key message from speeches made on the day was regional and rural Australia needs visitors. In Longreach especially, tourism is vital given the impact of the four year drought.

I have thought about this a lot since Saturday along with stories I hear from many newsagents in regional and rural Australia about the tough local conditions caused by drought, high unemployment and other factors.

In every situation I can think of, growth in tourism could help.

To urgently encourage tourism to regional and rural Australia I’d like the federal government to offer travel subsidies for families to travel away from the cities, to regions where their tourist dollars will do good for local economies.

The subsidies could be for family flights to regional Australia, accommodation in country towns in bed and breakfast, farm stay or local motel accommodation. I’d love to see local restaurants and find experiences subsidised along with local tourist attractions.

I’d love to see subsidies for city versus country kids sporting tournaments that would bring families from cities to country towns.

I would not want to see subsidies any foreign owned company or any business above a certain size or with a head office in a city – except for airlines to get people to their destination.

This needs to be a regional / rural Australia first initiative, targeting getting people to travel the country, spending locally and boosting the local economies that are struggling.

What this has to do with newsagents is that there is a newsagency in every town. They could be part of managing the program locally. When helps local towns helps local newsagents. Helping newsagents helps a quintessentially Australian business.

18 likes
retail

Would you prefer your drinks mixed by a human or a robot?

Screen Shot 2015-10-22 at 6.32.08 amMe? I prefer my drinks mixed by a human. I prefer the surprise, the personal experience and that the transaction is part of the world of which I am part. I like that each drink is unique.

Royal Caribbean Cruises is promoting its robotic drink mixers to entice people on board. Beyond a brief moment of oh wow, I cannot see the interest to the drinker. Bartenders offer a personal specialist service. Surely this is more important than a robot service where every drink tastes exactly the same.

A bartender can mix two of the same drinks right after each other and they can be different. Surely we should cheer the differences from live human engagement compared to a passionless same same experience from a robot.

What is the world coming to?

Our newsagency businesses provide personal service every day. Our service is our most important point of difference for products shoppers can purchase at nearby competitors.

In providing our services we provide personal human interaction that ought to be more authentic than the interaction people get from the auto checkout at the supermarket or the tired student service at a 7-Eleven.

We ought to cherish the human contact, enjoy it and give those working our businesses permission to be themselves, to be in the moment.

While some may laud the robotic drink mixers as innovation, I see them as dehumanizing society in pursuit of higher profits. That is not what I am in small business for. What about you?

4 likes
Ethics

Specials drive sales in retail

Going through photos from my trip to the US I am reminded of terrific retail gems I saw along the way, photographed and then forgot about. here’s one – how to be consistent with offers targeted at your retail niche:

IMG_0086

4 likes
retail

Now this is competition!

IMG_9958This photo shows two convenience stores on George Street in Sydney, next to each other. What makes this direct competition even more surprising is that there are eight other convenience stores within a two minute walk of these two shops.

While Sydney is busy, it feels like there are too many convenience stores. Two next to each other in the photo is extraordinary.

Imagine this type of competitive situation for your business – a retailer next to you selling 80% of what you sell, one the same hours. How do you compete? What differentiates your business from theirs?

Convenience stores have no protection. Suppliers want their products everywhere – for convenience.

I mention this today as there are newsagents who continue to push for protection. I think that is a hard push to make where we see small businesses,like these convenience stores, apparently surviving without any protection.

While there may be other factors in play with these convenience stores, factors beyond the competitive products that help them survive – but such factors are not obvious to me.

8 likes
Competition

Secondary location driving adult colouring sales in the newsagency

IMG_9402While the display of adult colouring art therapy titles at the front of the shop attract shoppers from the busy mall, this second location half-way into the shop and near the card department is driving excellent sales.

The table in the photo is placed in front of the main magazine aisle. It has been placed to confront destination traffic as well as to push people either side to ‘notice’ other products we have in-store.

Adjacencies are everything in retail. Get them right and basket depth grows.

Time spent thinking about product adjacencies and destination traffic disruption can pay terrific dividends for us in our retail businesses. If you look at the photo you can see the cul-de-sac we have purposefully created for the shopper. It is working a treat.

Putting adult colouring titles in is okay. Do9ing so with thought to maximise the opportunity is vital given the competitive marketplace.

We make our own success and earn our own failure.

5 likes
retail

Understanding gluten intolerant customers

IMG_9218 (1)I was reminded success in retail can come from better understanding your customers last week at a a breakfast buffet where they had a separate toaster for toasting gluten free bread. I asked someone using this  about the need for a separate toaster and discovered even a crumb from bread with gluten can be harmful .

This conversation played on my mind over the next few days as I thought how we handled gluten related titles and other titles serving specific dietary needs. I have resolved to be more careful in placement of gluten related titles not only to make them easier to find but to also demonstrate the type of respect coeliacs tell me they will appreciate for the misunderstood condition.

This type of attention to detail can be beneficially differentiating for us.

5 likes
Newsagency management

Changes in Darrell Lea Dad’s Bags

IMG_9059Darrell Lea Dad’s Bags aren’t open like they used to be. In the bag all the goodies are in a sealed plastic bag. I’ve not had darrell Lea for a few years but I recall customers used to like checking the items in the bags. Not they have to pull out the plastic bag. I doubt it will hurt sales, just makes the Dad’s Bags little more big business than small business.

6 likes
retail

Cheap Coles plush disrespects AFL brand

IMG_7074AFL plush items at Coles supermarkets disrespect the AFL brand in my view. The products feel dreadful. I wonder if this is why Coles still has stock. My experience is when it comes to AFL product shoppers want quality as the quality speaks to their feelings for their team. This plush, in my view, is not quality. Maybe the AFL should stick with channels such as newsagents when it comes to items like this. We understand quality.

6 likes
retail

How to close a shop and bring the community with you

IMG_6754The Thomas Dux supermarket near where I live is closing and for two weeks they have had this sign in the front window. I like the advance notice they provided, the photo of the team and the invitation to visit the team members at other Thomas Dux locations.

Kudos to whoever is responsible for this messaging. They have got it right.

Too often, shops close without notice, leaving shoppers feeling bewildered.

3 likes
retail

Disrupting foot traffic can get your retail business noticed

IMG_6741Walking through the city the other day I stopped to look inside this shop with a bike and fresh produce parked at the front door. I stopped because a bike like this with produce was out of place in the middle of a busy city. Inside was a coffee shop. The  bike and fresh produce offered an indication of the type of business this is – where fresh matters. The bike also offered a visual cue about the business, attracting a certain type of person.

Looking back at the photo, it reminds me that sometimes we can attract people to our shops not by displaying what we sell but by displaying items that appeal to those we would like to attract.

9 likes
marketing

Cool use of projection bring excitement to retail

wallscreenIn a retail store a couple of days ago where they projected onto walls to create a funky vibe. With projector prices at an all time low, wall projections an easy way bring a ver different vibe to a shop … and then change it at the push of a button. I could see this working in some of the larger regional stores out there where there is space to play with.

1 likes
retail

#1 of five provocative suggestions to challenge how you view and manage your retail newsagency

This week I will publish five deliberately provocative suggestions on aspects of retail newsagency management and operation. My goal is to challenge newsagents and their suppliers to break free from the past and engage in more present day retail

Suggestion #1: remove all magazine posters.

Magazine sales have been declining between 5% and 9% year on year for at least the last five years. You cannot deny the data. The trend is down and unless publishers start publishing content to drive sustained increased interest, the trend will continue. My view is that the key reason for decline is content and not the medium itself.

Why put up posters for a declining category? Why spend the time and give over your front window and other locations promoting products which are suffering from declining interest.

I think if all newsagents did not put up any magazine posters for three months sales in your newsagency would not fall. I say this based on my own experience.

I suspect one reason we are encouraged, bribed and pushed to put up magazine posters is drive awareness of the mastheads and not necessarily to drive purchases in our businesses. None of our competitors give away promotional space and staff labour time like we do to promote magazines.

Imagine the new uses you could make of the open windows, aisle ends, columns and other places you fill with magazine posters.

I don’t use magazine posters and have not for five years. My magazine sales are growing. I think other newsagents could have a similar experience.

So, my provocative suggestion today is to not put up magazine posters. Instead, use that space for something more useful to your business. Use the space to differentiate your business, to promote products and services which are unique for you in your area. Use the space to attract shoppers who may not usually walk through your front door.

Sure, it’s tough to have to work out what to put in a window or what to promote on an aisle end but since you pay for this space surely you want to get maximum value from it?! Magazine posters for a slowing category are not good use of the space, especially since the display is not promoting something even remotely unique to your business.

This action of not putting up posters could be the beginning of a revolution in your newsagency, the start of you looking at your business differently.

My own experience is that the posters are not necessary. If we all found this publishers save money on printing and on merchandisers (for the newsagencies that are visited by merchandisers).

Are you up for this revolutionary suggestion?

While I am publishing the suggestions I am not necessarily advocating them for all newsagents. I see this blog as playing a role in challenging how we look and manage our businesses and from that encourage newsagents to think carefully about decisions they make.

12 likes
magazines

Easter Sunday penalty rates for Victoria

The Victorian government has announced that Easter Sunday will be declared a public holiday to provide for an increase in pay for people working that day. Sunday penalty rates are already excellent, there is no need for the government to force business owners to spend more money getting people to work when they want to work.

14 likes
retail

What small business can learn from #libspill

For all their talk about leadership, politicians rarely demonstrate this trait. Instead, they focus selfishly on themselves ahead of the needs of those they claim to serve.

This focus on self preservation is evident in Australia this weekend in the lead up to the vote on the spilling of leadership position of the parliamentary Liberal party. Watching it unfold yesterday and today on TV and online, I have been thinking about what we in small business can take away from this. Not much I think.

The same is true of the the various leadership challenges in the Labor party over their recent years in government.

Our ‘leaders’ are not leading. Despite their spin, they look after themselves first and in doing so lose direction. Here’s my small business perspective on #libspill:

  • Knowing what you stand for and clearly articulating this and why is vital. You need to know why you are in business, what your business stands for and to speak to the narrative supporting this. In business, this is your USP (Unique Selling Proposition). What sets you apart from the others. Taking others ion your journey in pursuit of this is even more vital.
  • Disunity is death. This is as true in politics as it is in business. If everyone on your team is not behind your mission they put your mission at risk.
  • This is the era of conversations. We are talking with each other more than ever, especially in business. Yet the Prime Minister through #libspill has held one-way press conferences with no two-way communication.
  • The world has changed. Tony Abbott referred to social media as graffiti. Some newsagents mock social media. Anyone dissing social media is out of touch with the people and ignoring how people communicate today.
  • Trends can start anywhere. A good hashtag on Twitter is all you could need to get noticed. Social medial is a platform where small businesses can be as noticed as big businesses – yet it is a platform many small businesses do not use. Hashtags take on a life of their own – #ImStickingWithTony
  • People know what they want. Whereas in the past you would pitch or offer something and people would respond. The world today is about giving people what they want and this starts with them engaging with you before you even have your products in-store. This is a consequence of a more connected world. Success will come sooner to those connected with this world and giving people when they want. No, that does not mean turning at every demand. Good leadership is about communicating so people learn what they need which may different from what they want.
  • People appreciate strength. Like him or not, John  Howard commanded respect. This is vital to leadership. A small business that leads will be more noticed and respected than the small business that follows. While leadership has risks and challenges, it is the place from where you can set the agenda.

What we are seeing among the federal Liberal politicians is poor leadership, self interest and ignorance of the world today. I suspect these are reasons for poor polling. In small business if we lead well, focus on our customers and connect with the world we are more likely to be successful – and show the politicians how it is done.

Footnote: I am frustrated with the business representatives media outlets interview at times like this. They claim to speak for business yet rarely do they say what I would like them to say. They should clarify their statements with a disclaimer that they represent the big business end of town and not the vast majority of business owners.

6 likes
Ethics

3D gaining traction in retail

3dpOne of the shops I got to see in New York last week was 3D printing outfit Makerbot. On the back wall you can see 9 3D printers. Elsewhere in the shop they have items for sale that they have ‘printed’.

While I’ve written about this previously, I am revisiting it today as I think about products and services we might offer in the future and whether they are viable for us.

3D printing is still in its infancy with the printers of any strength and value costing thousands and the products they produce of questionable commercial value given printing times. However, there is an extraordinary curiosity value and this gets people interested – even if they don’t buy.

Today, my interest in a 3D printer in store is as a magnet attracting people who may purchase other items. At Makerbot, the shop is primarily used to sell the printers as this is what their parent company makes. There are plenty who visit the shop to watch the printing – it is mesmerising.

3D printing is a space to watch. yes, I know harvey Norman and others are in the space. The units I am looking are superior and not yet retail friendly.

4 likes
retail

Some retailers benefit from the heatwave

While many in Australia fight to protect their homes and communities from bushfires today, it feels inappropriate to benefit from the surge in sales as a result of people flocking to shopping centres to escape the heat.

That’s what is happening though. Today will be a much busies than usual first sSaturday of the new year as a result of the extraordinary heat.

4 likes
retail

Product adjacency mistakes

productadjacencyI am guessing whoever decided to put the kids face paint with condoms was not following  head office mandated plan-a-gram in the 7 Eleven where I took the photo.

Space is a challenge in a small footprint store. Also, sometimes you put a product somewhere to get it out thinking that you will come back to it later.

4 likes
retail

What?! No coffee

Europeans are used to towns closing down for summer and plenty in China are used to it too when factories and businesses close for Chinese New Year. But I don’t get why my favourite coffee shop is closed today and for the next couple of weeks.

It’s a competitive world with other coffee shop options – so competitive that I thought this year they would stay open to stop their regulars discovering better coffee elsewhere.

This is the risk all retailers face if they are in a situation where they can close – as opposed to being in a shopping mall where you can’t close.

While a break could benefit everyone including the family at the heart of the business, shoppers are not as loyal today. In small business especially I think we are better off NOT giving our customers a reason to shop elsewhere. Tough as it is, being there when they want and need us is small business retail 101.

I have found an alternative coffee shop.  They have a four-shot monster latte that is amazing. Flying…

10 likes
retail