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Sales benchmark

Valentine’s Day sales surge in the last four days

While Valentine’s Day was a good season through the four weeks leading up to the day, the real sales surge for us occurred in the last four days.  We say a four fold sales surge in the last four days compared to the same period last year, far more than the sales surge for the whole four week season as we measure it.

While gift sales were up, it was cards which worked the best for us with sales up well over double.  Thanks to our in-store hallmark category and segment performance reporting we can see where the sales growth came from at the segment level.  For us, it was Husband and New Love which did particularly well on the previous year.  Oh, and the handcrafted Valentine’s Day lifestyle cards did very well.  Knowing the sales results at this micro level immediately after a major season is a real boost not only to our business performance intelligence but also to how we interact with suppliers.

Data is king (and queen) in this marketplace.  Bring on Easter!

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Newsagency management

Extraordinary response from newsagents to benchmark study

I have received the best response yet to a request for newsagent sales data – to my request earlier this week of the Q3 newsagency sales benchmark study.  In three days I have received more sales data than I would usually get in ten days.  This suggest considerable interest in the outcome of this particular study.

Please follow the link above for details in participating.  The result will be a health check on sales across various categories in the newsagency channel.

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Newsagency opportunities

Q2 2011 Newsagency Sales Benchmark Study Invitation

I am looking for data from newsagents for my next Newsagent Sales Benchmark Study. While I am primarily interested in data from the 1,700 newsagents with newsagency software from Tower Systems, I’ll happily work with other newsagents on their data.

Participating is easy. Run your Monthly sales Comparison report with Apr 1, 2011 – Jun 30, 2011 on the left and Apr 1, 2011 – Jun 30, 2010 on the right. TICK THE CATEGORY BOX as this provides an excellent breakdown to allow more thorough analysis. Please do NOT tick the supplier box. Save the report as a PDF. Email this report to mark@towersystems.com.au.

I need the data by next Monday, July 4 as I’d like to publish top line results by Friday, July 8.

I have been doing these sales benchmark studies for years.  The results have been supported by audits and other studies produced by others.  The purpose of my benchmark study is to help newsagents sport trends and this this make better informed business decisions.

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Sales benchmark

Audit confirms newsagent benchmark study results

The Audit Bureau of Circulations magazine numbers for the March quarter released late last week confirm the results I published here a month ago in the latest Newsagency Sales Benchmark Study,

While I’ll look at the audit results in more detail later this week, I mention it today to encourage newsagents to look at the latest benchmark as it provides information which newsagents can use in developing business plans.

The newspaper decline is also very similar.  We showed 2% in retail sales and the ABC reported a 2.8% decline for capital city newspapers.

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magazines

Concerning decline in card sales Jan-Mar 2011 revealed in sales benchmark study

My latest Newsagency Sales Benchmark Study, comparing January through March 2011 with the same period in 2010, has revealed a concerning decline in greeting card sales, an average decline of 8% in unit sales.  It also reports a continuation of the decline in magazine sales with an average decline of 7%.

While newsagents can’t control magazine supply, we can control card supply.  Card companies tend to supply based on sell in.  Newsagents should be armed with their own sales data when agreeing to supply by card companies.

On magazines, that overall magazine supplies to newsagencies have not declined in line with sales is appalling.  This is something which needs urgent attention.  We have less control than our magazine competitors yet we sell more than they do.  Gotch and Network could well be killing off the channel by supplying as they do.

There is good news in the sales benchmark study.  Ink and gift sales are up 10% and more for newsagents with solid offers in these categories.  Some newsagents are reporting extraordinary growth in art related sales but this is due to a particular range (I might have more to say on that soon).  I also have data for some stores reporting double digit growth in magazines … as a result of extraordinary campaigns competing with other newsagencies and nearby supermarkets.

Here is more detailed information from the latest Sales Benchmark Study:

  • Magazines. Magazine sales fell, on average, 7% (in unit sales) in the January through March 2011 quarter over the same period last year. 78% of newsagents reported a decline in magazine sales. Computer, Music, Teenager and Motoring and led the decline with most delivering a double digit decline in sales. Women’s Weeklies declined but not as much as the others.
    Greeting cards. Greeting card sales fell, on average, 8% (unit sales) in the quarter. 84% of newsagents reported a decline. While category level data is not available for more than half participating newsagencies, what data I have suggests that the declines are outside everyday cards.
  • Stationery. 73% of newsagents reported a decline in stationery revenue (not including ink) with the average decline 5%.
  • Ink. 40% of stores participating in the study have a separate ink department. 90% of these stores reported growth in ink revenue of 10%.
  • Gifts. 65% of the stores in this study have a gift department. 80% of these reported an average sales increase of 9% in gift revenue.
  • Newspapers. 80% of participants report an average newspaper sales decline of 2%.
  • Basket size. 57% of newsagents reported an average 6% decline in basket size.
  • Traffic. 69% of newsagents served fewer customers than in the 2010 period.

Yes, these are tough times.  Rather than complaining about it, we need to work on our businesses, reconfiguring them for a brighter future.  Creating the businesses we want rather than the businesses we are told to have.

Now, more than ever before, newsagents need to assert control. Suppliers who resist us acting as business people in control of our own businesses need to be ignored.

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magazine distribution

Q1 2011 Newsagent Sales Benchmark Study

I am looking for data from newsagents for my next Newsagent Sales Benchmark Study. While I am primarily interested in data from the 1,700 newsagents with newsagency software from Tower Systems, I’ll happily work with other newsagents on their data.

Participating is easy. Run your Monthly sales Comparison report with Jan 1, 2011 – March 31, 2011 on the left and Jan 1, 2011 – March 31, 2010 on the right. TICK THE CATEGORY BOX as this provides an excellent breakdown to allow more thorough analysis. Please do NOT tick the supplier box. Save the report as a PDF. Email this report to mark@towersystems.com.au.

I need the data by next Monday, April 4 as I’d like to publish top line results by Friday, April 8.

I have been doing these sales benchmark studies for years.  The results have been supported by audits and other studies produced by others.  The purpose of my benchmark study is to help newsagents sport trends and this this make better informed business decisions.

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newsagent software

New sales benchmark study announced

Newsagents are invited to provide data for my next sales benchmark study.  I am looking for sales data for two periods:

  1. December 2010 compared to December 2009.
  2. October through December 2010 compared to October through December 2009.

Newsagents using newsagency software from Tower Systems can participate by producing two Monthly Sales Comparison reports covering the periods noted above – with the 2010 date on the left and the 2009 date on the right and with the category box ticket (for more detail).   Save the report as a PDF and email it to me.  

While overall performance will be interesting, I will be looking at sales efficiency – items in the basket as well as overall basket value – along with unit sales and revenue by department.

By ticking the category box I can look at specific categories, such as women’s weeklies magazines, and compare them with overall magazine performance in newsagencies.

By analysing trends, we (individually and collectively) will be better able to plan for the future and to make good decisions for 2011.

I will publish the results here and elsewhere.

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Newsagency benchmark

November sales benchmark study

I am undertaking a sales benchmark study comparing sales in newsagencies for November 2010 against November 2009.  This was announced to newsagency software customers of Tower Systems yesrerday. Newsagents participate by sending a Monthly Sales Comparison Report: tick the box to exclude home deliveries, and tick the box for a category breakdown. Set your first date range (on the left) to November 1, 2010 to November 30, 2010 and the date range of the right to one year earlier. Once the report is on the screen, click the PDF button to save this as a PDF, go into your email software and send a copy of the PDF to me at mark@towersystems.com.au. I will publish the benchmark results here and elsewhere so all newsagents can benefit.

Tower Systems is committed to helping newsagents make better business decisions through access to accurate business data in a timely fashion.

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Newsagency management

Magazine sales plummet in newsagencies

Magazine unit sales fell in 72% of newsagencies in the second quarter of 2010 compared to the same period in 2009 according to data from the latest Newsagent Sales Benchmark Study.  Of the 72% of newsagencies reporting a decline (from a study pool of 120), 59% experienced a decline of 10% or more.

This steep decline is on the back of a significant decline in the same quarter a year earlier.  It continues the trend of a 7% decline reported in the first quarter of 2010.  Magazines, a key traffic generator for newsagencies, are in trouble.

Curiously, the decline for women’s weeklies titles (New Idea, Woman’s Day, Famous, NW, OK!, That’s Life and Take 5), was lower than the overall average for the category.

In almost every newsagency reporting decline, sales in the food segment increased.  This is the Master Chef, and for many, ACP Women’s Weekly Slow Cooker impact.

So why such a steep decline in magazine sales in newsagencies?  Outside of leakage from newsagencies to convenience, I put the decline down to economic conditions – more so than the impact of the Internet or mobile technology. Money is tight.  You see it the way people shop.  We see fewer sales today with two and three magazines.

I expect the decline to get worse before it gets better.

Outside of the loss of sales, the impact is magnified for newsagents as they continue to receive volume for most titles at 2009 levels.  The cash-flow drain is unsustainable for some newsagents.  This is compounded by shop rental increases of 5% and more year on year, labour cost increases of 10% and general operating cost increases of 10%.

I would like to see magazine publishers, magazine distributors and newsagents respond to the magazine sales crisis by meeting to discuss the situation and possible solutions.  Something has to give, and very soon!  Publishers and magazine distributors need newsagency businesses to be strong.  Another few months of this and the channel will start to shrink

The Newsagent Sales Benchmark Study relies on accurate sales data from a pool of 120 newsagencies spread across shopping centre, high street, regional and rural situations.  I have been conducting the study for years and the results have been borne out in audit and other results released.

I will publish the full results of the latest Sales Benchmark Study on Monday.

The 1,700 Newsagents using the Tower Systems newsagency software can easily check their own year on year performance using the Monthly Sales Comparison Report.

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magazines

Q2 2010 Newsagent Sales Benchmark Study Announced

I am preparing to undertake a newsagent retail sales benchmark study comparing sales for April – June 2010 against April – June 2009.

Tower Newsagents can participate by sending a Monthly Sales Comparison report: tick the box to exclude home deliveries, and tick the box for a category breakdown. Set your first date range (on the left) to April 1, 2010 to June 30, 2010 and the date range of the right to one year earlier.

Once the report is on the screen, click the PDF button to save this as a PDF, go into your email software and send a copy of the PDF to me at mark@towersystems.com.au. I’ll publish the benchmark results here and elsewhere so all newsagents can benefit.

NOTE: If you are running our latest software, you can click on the BENCHMARK icon on your desktop, enter the April through June date range and have the software do the rest.  If you have not used our direct email facilities – to email customer accounts or to email Gordon and Gotch supply changes, the software will ask for some email details from you.  This takes a few seconds to setup.

Non Tower newsagents can participate by emailing me for a copy of a spreadsheet template I have prepared.

As with past benchmarks, I expect to get data from between 100 and 120 newsagencies in the next week.  The results will provide an indication of sales performance year on year and give newsagents something with which to compare their businesses.

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Newsagency management

New sales benchmark study announced

I am undertaking another newsagent retail sales benchmark study comparing sales for January-March 2010 against January-March 2009.

Tower Newsagents can participate by sending a Monthly Sales Comparison report: tick the box to exclude home deliveries, and tick the box for a category breakdown. Set your first date range (on the left) to January 1, 2010 to March 31, 2010 and the date range of the right to one year earlier.

Once the report is on the screen, click the PDF button to save this as a PDF, go into your email software and send a copy of the PDF to me at mark@towersystems.com.au. I’ll publish the benchmark results here and elsewhere so all newsagents can benefit.

NOTE: If you are running our latest software, you can click on the BENCHMARK icon on your desktop, enter the January through March date range and have the software do the rest.  If you have not used our direct email facilities – to email customer accounts or to email Gordon and Gotch supply changes, the software will ask for some email details from you.  This takes a few seconds to setup.
Non Tower newsagents can participate by emailing me for a copy of a spreadsheet template I have prepared.

As with past benchmarks, I expect to get data from between 100 and 120 newsagencies in the next week.  The results will provide an indication of sales performance year on year and give newsagents something with which to compare their businesses.

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Sales benchmark

Shift in magazine performance last quarter

While I am yet to complete the newsagent sales benchmark study for the April / June quarter, I have completed my magazine analysis.  Overall, magazine sales in the sample group of over 100 newsagencies are down, on average, 9%.  This is based on a same store year on year basis.  What is interesting is that the decline is lower for the weeklies and major monthlies.  Weeklies are down 4% and major monthlies are down 5%.  This is a change in the trend which I saw in the January / March newsagent sales benchmark study.

There are more newsagencies reporting growth than earlier this year.  However, this is balanced by some reporting considerable declines.    In most cases, the larger declines appear to be related to economic conditions.

The sales benchmark study involved data from more than one hundred newsagencies covering April through June 2009 and the same period in 2008.   I removed newsagencies at extremes from the dataset where the extreme results appeard to be completely due to local factors.

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magazines
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