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

The Grower – a hit with newsagents, raises funds to help farmers

Alice Mabin will be known to many newsagents because of the success of her earlier books, about which I have written here. Her website tells her story. Alice has just published a new book, which is perfect for Father’s Day and Christmas.

Like her other books, The Grower, is quintessentially Australian. It is perfect for indie retailers like newsagents. You won’t see this in mass outlets.

Alice shared a newsagent related story over the weekend that is inspiring, here it is in her own words:

I probably couldn’t orchestrate Friday again if I tried….but if I could, I would! (Check out the photo of the bloke attached!)

I walked into a newsagent to show them the new Grower books. I filled them in on the story, showed them some of the amazing imagery and explained the media and marketing behind it.

They were reluctant to take them and expressed that they thought they were too expensive for their clientele and that they wouldn’t buy one let alone both books.

I explained that most people who had ordered online so far, had ordered both books, and paid freight also.  (This sounded like sales ploy I know, but it was true!)

They agreed to give some a go, so I said, come over to the car and help me carry them back.

As we walked out the door an old bloke pulled up in his car and flung the door open and yelled really loud and gruffly “excuse me”. It pretty much stopped everyone in the street.

He was looking straight at me and I said “ah yes” and he said “are you the kiwi girl who wrote those books and was on tv last night?” I said “ah yea I am”. He told me he had The Drover and The Driver and he wanted to add to his collection.

He asked where he could buy the books, and I said well if you give me 5 mins, you can get them from the news agent here. So he followed me inside and asked how much they were.

I told him $99 each. He said “well I’ll take both please and could you autograph them?” I did one better, I even had my photo taken with him as he became the first official person to have all 4 books!

The newsagent was so blown away. What a great start to the first day of promotion.

They also loved that $3 from every book sale is going to Buy A Bale charity.

There is no better time than now to support farmers and build some moral around agriculture. These books are a great way to do this.

Click here for details on Buy a Bale.

Here are Alice’s contact details: M | 0499 559 399  E | alice@almabin.com.

Footnote: I have no commercial relationship with Alice whatsoever.

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Newsagency opportunities

Managing challenging customers, and selling products

I have noticed more retailers using humorous signs at the counter to encourage less stressful encounters terms with customers. In some cases they are signs specifically for that purpose whole in others they are signs that are actually sold in the store. Here is one example I saw in a card and gift shop earlier this week.

I like this sign. It’s sharp but fun. It is part of a larger range that has been popular in the US for a couple of years now.

I saw first-hand that this sign work as a talking point with customers, which can lead to them looking at other signs in the range.

The key with using any signs like this, which are part of a range in-store, at the counter is to keep the counter clean of other distractions. This means no other signs. Plus, you need a quick response to any customer comment or query, to maximise the opportunity. The other thing I would do is change the signs regularly, thereby not focussing on one like this the could offend customers.

How we win some customers today is different to a few years ago. Just as what can constitute a gift today is different to a few years ago. Winning at both requires in playing outside what has been usual in our businesses.

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Customer Service

newsXpress encourages shop local for Powerball $100M

Here is a 9 second video provided to newsXpress members yesterday for promoting shop local for the Powerball $100M jackpot. The objective was to create something different to the usual lottery marketing and something that could be used across Australia.

Most marketing videos for social media are disposable. That is, you use them once or twice and never again. People want fresh and entertaining content. This is also why short videos work well.

I would be happy to detail here marketing collateral from other marketing groups for this Powerball jackpot.

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Lotteries

Melbourne gift fair wrap up

While I was unable to attend Melbourne gift fair this year, I am grateful to colleagues, supplier contacts and friends who shared their insights. Here is a small selection of key insights shared:

  1. Optimism among retailers. Moderate to good. Retailers say fellow retailers talked of tough conditions but were overly optimistic about Christmas and beyond. Suppliers I heard from say they did good business.
  2. Optimism among suppliers. Retailers and suppliers both said some suppliers were less optimistic. A couple of suppliers have mentioned they will not do the fair next year and instead invest in a different route to market.
  3. Range of products. People seemed happy with what was on offer.
  4. Range of retailers. Several commented they saw a broader range of retail businesses represented.
  5. The fair itself. As has been said for plenty of years – one day too long, maybe two.

Looking at my software company’s involvement, I am happy with the results. This is Melbourne fair twelve or so for us. Plenty of retailers from a variety of channels connected with us and booked time to meet in store, which is the main reason for us participating.

Look at the involvement of buyers for shops I own, they are happy with what they ordered and the opportunities available.

This post is an opportunity for others who would like to share their feedback to do so.

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Newsagency management

Thinning newspapers have other implications

Thinning newspapers in Australia are not dealing well with being rolled. The photo shows The Age from Friday a week ago. Whereas a few years back you could easily fold the paper back into shape, it is hard now with such a thin product.

The photo shows the paper after a couple of goes at straightening it out for easier reading. This presentation that you can see in the photo impacts on product enjoyment and potentially impacts subscriber numbers.

While I understand rolling machine setting adjustment could result in a better outcome, there is a problem with thinning newspapers and how to provide the subscriber with a more enjoyable outcome.

Papers most days are too thin for flat wrap, which was the obsession of parts of News Corp years ago. There was an extensive trial and plenty of debate.

Maybe, the approach in some US cities of a single fold into a slim bag you can hang of a door handle could work or maybe a simple tri-fold into a flatter bag. However, neither lends themselves to throwing. The photo here, taken earlier this week, shows a how a newspaper is presented for a home delivery customer in a town in Wisconsin.

I do think there are issues here to be considered by distribution experts, to ensure customer satisfaction and thereby push back against loss of subscribers due to product presentation.

A distribution newsagent I was talking with last week suggested a return to hand folding. Another who already does this themselves for a small run says they easily adjust the strength of the roll based on the thickness of the product.

It is ironic that thinness is a challenge today where years ago thickness was the issue, a big issue.

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Newspaper distribution

No wonder people are placing fewer classifieds in newspapers

I had cause to place a death notice in a News Corp. newspaper early last week. The website was clunky. I selected a price point based on the word count but the website dropped me to a lower word count and then bumped me up to where I was in the first place. It was cumbersome and frustrating.

However, that is not my main complaint. Here it is…

In the death notice there was mention of a memorial service, within the word count limit. They would not permit this. Either I had to create two separate ads, one in death notices and one in funeral notices for a higher cost, or move the whole ad from death notices to funeral notices.

Due to an apparent arbitrary rule of News Corp. I either spend more on two notices or end up in a category that I considered inappropriate. This is a rule of yesteryear, a rule that, to me, demonstrates why fewer people run classifieds in newspapers.

It is not as if the mechanics and structures of the classified columns will not permit memorial service details in death notices. There is no reason for the rule from what I can see except to maximise revenue for the publisher.

What is interesting is that I ran the same ad in a small local regional newspaper, not part of the News Corp. world, and they accepted and ran the ad without issue. In their world a death notice can include a memorial service notice. Indeed, the experience with the regional publisher was simpler, faster and more enjoyable than with News.

Based on my personal experience with News Corp. classified ads, I think it is a broken out of date business that charges as if it is the only platform for these life moment notices. Thankfully, there are more options, which can be used depending on the generation one wants to reach with such a notice.

For all their focus on digital delivery, pay walls and more, News Corp. has their classifieds business rooted in the past, in an era when print was the only platform.

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Ethics

Leveraging Fortnite

Fortnite (the game) is massive game and has been for quite some time. While supplementary march is challenging to source, it is out there and will be easier to access soon. In the meantime, the latest Krash is an excellent title to pitch at the counter as it will be purchased on impulse by people who do not usually purchase the title but who love the game.

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magazines

Tips on how to grow card sales in your retail newsagency

Following from the release of the latest newsagency sales benchmark results yesterday, I share small selection of the advice newsXpress members have access to on how to grow card sales. I am doing this today to show that there are actions you can take in your newsagency business to grow card sales.

  1. Pitch at the counter. Always have a small selection of cards for impulse purchase at th counter. Change this every week.
  2. Staff picks. Close to the counter have a selection of staff pick cards. These should change weekly.
  3. Pitch outside the department, disrupting traffic. Ensure that every shopper is pitched cards every time they visit, even with a small format stand. You choose the cards for the start. Do not purchase extra cards.
  4. Reward loyalty. Ensure every card purchase is a step toward a loyalty bonus.l Dfferentiate your business through this.
  5. Train. Ensure every staff member understands your cards and knows how to approach shoppers.
  6. On social media. Every few days, talk about a card in simple way that pitches the card without being to marketing oriented.
  7. Promote to businesses. Businesses send cards – if they do not they should – pitch bulk purchase at an offer.
  8. Focus on low-volume captions. Captions like Thank You Coach and New Home give you the opportunity to remind people about giving cards.

Key in this activity is the objective of getting people to purchase more cards than they otherwise might. All of us in the greeting card supply chain need this as the purchase volume per capita in Australia is behind the US and UK.

I think we as retailers carry the prime obligation to drive card sales and to attract new shoppers to our businesses looking to purchase cards. We need to do this by being engaged with the category, loving it for its high margin and traffic generation and being creative in our pitch. Our influence is greater than we and suppliers have allowed it to be over the years.

As I noted, this is a small selection of a target kit of advice designed to help retailers grow card sales.

I hope you find the suggestions useful.

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Greeting Cards

Retail newsagency sales benchmark results: April – June 2018 vs. 2017

The core category challenge continues for retail newsagencies while new categories grow.

This newsagency sales benchmark study reflects sales results as tracked in 153 retail newsagency businesses in Australia for the April through June quarter of 2018 compared to the same period in 2017.

Only businesses with accurate data are included in the study. There is no banner group dominance, nor is there city over country dominance.

In collating data, I remove businesses at the extremes where other factors are at play such as major construction or a newsagency in a centre with two newsagencies where one closed and thereby giving an unnatural boost to the other.

Each data point is the average, mean, of all data for the data point.

In assessing results at the category level, I have only included data for each category businesses trading in that category.

OVERALL BUSINESS PERFORMANCE METRICS.

  • Customer traffic. Down 4%
  • Overall sales. Down 3.5%
  • Basket depth.
  • Basket dollar value.

CORE PRODUCTS.

  • Newspapers. Unit sales. Down 8.5%.
  • Magazines. Unit sales. Down 8%.
  • Greeting cards. Revenue. Down 4%.
  • Stationery. Revenue. Down 10%
  • Lotteries. Revenue. Flat.
  • Tobacco. Revenue. Down 16%.
  • Agency. Parcels, gift cards, betting account top-up. Down 6%.

SPECIALTY PRODUCTS.

  • Gifts. Revenue. Down 5%.
  • Toys. Revenue. Up 6%.
  • Plush. Revenue. Up 3%.
  • Collectibles. Revenue. Up 3%.
  • Craft. Revenue. Up 2%.
  • Coffee. Revenue. Up 15%.

What does this mean?

It was a tough quarter on all fronts. While there certainly are businesses achieving excellent growth, too many are not and this impacts the results.

My take is that the decline in traffic the core of papers, magazines, stationery and tobacco is not sufficiently being replaced with new traffic. While some newsagents are well engaged in pursuing new traffic, the majority are not.

I don’t think there is sufficient attention on basket depth and basket value. These are important metrics.

Another point from this latest study relates to gifts. It is unhelpful to group all gifts together when I do know of considerable diversity in the products placed in this category. For example, one store has in gifts cheap china product while another shop has high value collectible pieces. How retailers categorise the products is up to them. I can only assess based on their categorization.

I want to comment on greeting cards. In the benchmark dataset, I can see sales data for all the major card companies. The overall, disappointing, performance I note is not isolated to one company over others.

I am concerned that I am seeing a sales performance trend for cards in newsagencies that requires attention.  While the first response to this by some newsagents will be to demand card companies act, I think the most important and immediate action will come from newsagents.

Newsagents have given over their card departments to card companies for too long. I think we need to exert control on the placement of cards in our shops. While a destination card department is important, we need to pitch cards to all shoppers. This needs to be done by us thoughtfully, creatively and energetically.

I think all newsagents need to act on cards rather than standing by and watching. You only need look at Coles to see their engagement with the category. Their changes started over a year ago and they continue today. Their pitching of cards outside the department continues because it works. We can learn from this.

We need to be proactive when it comes to cards. It is an important category for us. There is only upside available for us from being proactive.

The occupancy cost challenge – a note for landlords.

Landlords want newsagency businesses in their retail mix. They want the store with papers, magazines, lotteries and other core items for the channel. Often, they restrict the space available for non-core, imposing a low gross profit model on businesses, thereby increasing occupancy cost.

Newsagencies today cannot sustain occupancy costs of more than 15% … where occupancy cost the ratio of retail space cost to product revenue lus agency commission. The goal must be 11% for the business to be profitable and able to serve the usual level of debt needed for such a business.

Landlords need to be aware of the changes in product mix, the challenges of low-margin core products and restrictions they place on what businesses can sell. They need to be flexible on rent so newsagency businesses can be sustained and thereby provide the service they want in their centre.

If landlords want a newsagency business they need to price the space to reflect the nature of a sustainable business in that location rather than any premium rent they could get from a retailer with higher margins.

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Newsagency benchmark

Will IPS be a casualty of the Nine takeover of Fairfax?

It is hard to see magazine distributor IPS as having any future, in a Nine controlled Fairfax business or even in Fairfax itself if the takeover collapsed.

With magazine sales continuing to decline and the category of less interest to retail newsagents than at any time in the history of the channel, it is hard to see upside for a business as small as IPS.

IPS comes up in discussion because of the proposed Nine takeover as Nine would be keen to resolve business performance challenges. I could be wrong but I suspect IPS would be a low hanging fruit opportunity it terms of tidying up IPS.

It will be interesting to see how this part of the takeover plays out.

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magazine distribution

Advice on reducing the cost of employee theft in retail

Theft is something to be managed in any retail business. Retailers are  stolen from by employees. Good management is about reducing the opportunity for and instances of theft.

Follow this revised and refreshed advice and the opportunity for theft will be lower and the certainty of detecting it higher.

  1. Value employees. Experts say this is the top step to take.
  2. Share information. Often, theft can be driven by a misconception about the profitability of the business. Sharing accurate business performance data can educate against theft.
  3. Do your end of shift through your software and have a zero-tolerance policy on being over or under. Reconcile banking to your computer software end of shift. One business where this was not done was being skimmed regularly for $200 a day.
  4. Change your roster. Sometimes people work together to steal. One retailer found a family friend senior and their teenage daughter stealing consistently.
  5. Check GP by department. If GP is falling outside what you expect, research it further.
  6. Demand the cash drawer be closed after every sale. A drawer left open is an opportunity.
  7. Keep the counter clean. A better organised counter reduces the opportunity for theft as it makes detection easier.
  8. Have a no employee bags at the counter policy. This makes it harder for them to hide your cash.
  9. Beware employees who carry folded paper or small notepads. These can be used for them to keep track of how much cash is in the register that is theirs – i.e. not rung up in the software.
  10. Beware of calculators with memories at the counter. One retail business employee used the memory function to track how much cash had to be stolen prior to balancing for the day – cash from sales not rung up.
  11. If you sell tobacco products, use stock control. Enter new stock as it comes in, scan all sales and only reorder based on what you software says. Every month do a stock take. Popular daily items such as tobacco stock discrepancies are an indicator of theft. Had one retailer we work with been doing this they would have caught their $250 a day employee theft months earlier.
  12. Scan everything you sell. Do not use department keys as this makes it easier for employees to steal since they know there is no trackback to stock on hand. Using department keys is an invitation to steal.
  13. Do spot cash balancing. Unexpected checks can uncover surprises. One retailer needing to do a banking during the day uncovered a $350 discrepancy that lead to discovery of systematic theft.
  14. Check your Audit Log. Look at cancelled sales, deleted sales and items deleted from a sale. Leaving a cash drawer open from the previous sale, scanning items, taking the cash and cancelling the sale is the most common process used by employees to accrue cash they then take from you. Good software tracks cancelled sales and what was in them. This can be matched with video footage.
  15. Setup a theft policy. Put this on a noticeboard in the back room. Get staff to read it and sign up to it.
  16. Do not let employees sell to themselves. If they want to purchase something make them purchase it from the other side of the counter.
  17. Be professional in your management of the business. The more professional your approach they less likely your employees will steal as they will see the risk of being caught as high.
  18. Advise all job applicants that you will require their permission for a police check. From the outset this indicates that you take your business seriously. In many situations applicants who have been asked for permission to do a police check advise they have found a job elsewhere.
  19. Do not take cash out for your own use in front of employees. If they see you take cash for a coffee or lunch some will see this as an invitation.

These steps work – based on decades of helping small business retailers to reduce and manage employee theft.

Theft, employee and customer, costs a typical small / independent retail between 3% and 5% of product sales revenue.  Management attention can cut this dramatically.  It does not take much time. No, it is more about having professional processes in place which everyone in the business follows.

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Ethics

Fun video appeals to shoppers for dad gifts and cards

Here is a video I created for newsXpress members a few weeks ago. I wanted too create something pitching to those who buy for dads but I did not want it to be about Father’s Day. This way it can be used through the year. The video was more popular with people under 50 years of age with an interest skew toward girls over boys.

While promoting Father’s Day is something we are doing, promoting being a destination for cards and gifts for dads all year round is more important to me. I am committed to filling the troughs between the peaks with good revenue and we can do this by attracting shoppers in fun and non-traditional ways, like this video.

Note: I share less than 5% of the marketing I am engaged with at newsXpress here on this blog. I mention that for any trolls readying a negative comment. I don’t care if you like the video or not. What I care about is that newsagents, all newsagents under any banner, engage creatively and regularly to attract new shoppers to their businesses.

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newsagency marketing

Melbourne gift fair tips for retailers

The Melbourne gift fair kicks off today. Here are my tips for retailers shopping the fair. Others are welcome to add theirs.

  1. Have a budget. Stay within it.
  2. Have a buying plan, to ensure you are buying to the goals of the business.
  3. Remember that you are not your customer.
  4. Know that your buying is the first step to attracting new traffic to your business.
  5. Write on each order your delivery timing requirements.
  6. Write on each order any promises made, so the order fully documents your expectation. These could include exclusive territory, returns etc.
  7. Note on the order whether you accept backorders.
  8. Note on the order by which time the order is cancelled if they are unable to supply.
  9. Take a copy of every order placed. Use your phone camera.
  10. Ensure you know who the customer is for the products in question.
  11. Do not pay a deposit.
  12. Have rest breaks to ensure you are fresh and alert when shopping.

If you are going to the fair, have a great time!

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Newsagent suppliers

Promoting newsagents for lottery jackpots

I love this Facebook post from Kerrilyn Page at newsXpress Mount Morgan explaining the importance of buying lottery jackpot tickets through your local small business newsagency. It frames the challenge of online and the importance of shopping local well I think. I also love the optimism of dreaming for the win.

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Lotteries

Supplier distress

A wholesaler who supplies a range of small business retailers including newsagents with whom I have never had any contact or commercial engagement called me late last week to discuss debt collection challenges. They have been owed more than $20,000 by five different newsagency businesses, with which I have no connection, for more than four months.

The purpose of the call was to talk through options.

Theirs is a small family business, with annual turnover of around $350,000. They are not strong on credit checks. They prefer to take people at face value. The $20,000 in bad debts is hurting.

The goods were supplied on time and in good order. No credit claim has been made. They know from personal visits that in three of the shops the goods have been sold.

The supplier is contemplating taking action. however, they question the value of the time and cost investment for the relatively small amount in each case.

What was interesting from the supplier was the comment that they think in at least several cases, the newsagents involves moved from supplier to supplier, buying on credit knowing they could not pay and expecting they would not be pursued for relatively small levels of debt. I don’t know if this was the plan of the newsagents in question,. However, it is concerning that the supplier thinks it was.

This small business supplier I spoke with is distressed. They say others are too. This is not good news for our channel in terms of reputation and in terms of supplier strength.  We need successful suppliers. A reduction in number will only hurt newsagency businesses.

I write about this today because the supplier asked me to, to see what conversation follows.

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Ethics

Cute drives traffic and revenue for engaged retailers

We are in a period of glory days for all things cute. You only have to look at the shelves of K-Mart, Target, Typo, Smiggle and other retailers to see the value they place in cute products to drive traffic and revenue.

Cute comes in many sizes, shapes and colours, and in different products including cards, games, toys, gifts, wrap and more.

What is interesting abut cute is that people purchase cute items because they are cute, nor necessarily because they have an immediate need or because of product function. This is what makes cute products valuable.

The Guardian published an article in 2016 that explored the science of cute. A quick online search soon reveals pen ty of articles about cute and why cute products sell. While rooted in Asian, and, in particular, Japanese, culture, interest in cute is worldwide.

In a newsagency today you can leverage cute through existing product categories of cards, gifts, plush and toys, even more. To maximise the opportunity, however, you need to promote outside the business, to connect with people who might otherwise not visit the shop to see what you have to offer in the cuteness space.

Using a keyword analysis tool, I can see that there are in excess of 100,000 cute related searches online in Australia ever month. man of these searches relate to products. People are looking for cute products. This is a need we can serve in our evolving newsagency businesses. Sure, it is hard to play in a space that is not easily understood. However, there are groups, suppliers and others ho can help.

Take a moment and do your own research. be aware of what other retailers around you are selling. Test some products yourself. Test, too, a cute approach to product displays – there are many inspiring images online to guide you.

Testing is important because playing in the space of cuteness is all about playing in a way with products and opportunities outside what may be usual in your business. You are unlikely to have a relevant reference point. This is why I suggest playing, experimenting.

Cute is popular right now. Find ways to embrace not and you may tape into a new source of customers for your business and that has to be goal #1 right now.

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Management tip

Tatts pitches digital purchases

Here is a Facebook ad for Tatts that came up in my feed last night. While it mentions purchasing in-store, the only path from the ad is direct purchase from Tatts.

This marketing of online purchase is what I would do if I was Tatts. However, it is a reminder to retailers to not over-capitalise the lottery offer in the shop.

Lottery purchases are migrating online and Tatts will make this easier and more enticing in my opinion.

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Lotteries

Newspapers work well at the back of the newsagency

With the return from newspapers declining in most retail newsagencies, due to declining over the counter sales and higher space related operating costs, retail newsagents need to find ways to retain the category but at a lower cost.

One easy move is to place newspapers in less valuable space, usually at the back of the shop. While many newsagents have made this move, many have not. Indeed, there are plenty who retain the old-school large format newspaper display in prime position facing the entrance to the shop.

In an average size retail newsagency with rent of $60,000 a year you would need to sell 30+ newspapers a day to cover the cost of the space before you even consider labour and other costs.

Since newspaper sales are declining rather than increasing, it is important to consider options – hence my thoughts today on newspapers at the back of the shop.

The common objection to newspapers at the back of the shop is that customers will complain. My experience is one or two right, but most will not. This is especially true if they are easily found, can be browsed and are well displayed.

If you have not relocated newspapers yet, I suggest you try it with good signage, an easily shopped space and a plan to make good use of the front of store space you free up. In fact, this is crucial. If customers see you making good use of the only memorial (boat anchor) newspaper stand at the front of the shop they are more likely to support your move.

So, make a deliberate move, make it easy for shoppers, show through actions why you have made the move and ensure everyone on the team understands why.

Since you pay the rent, the wages and other costs, moves like this are 100% yours to make. If you feel this is the right move for you, do it without worrying too much abut the folk who may complain or have a negative opinion but will nit contribute to the operating costs of your business.

I appreciate some want newspapers at the front of the shop as they want to identify as being a traditional newsagency. That is 100% cool, as long as you make the decision that serves your needs and how you see hour business.

Oh, and here are ideas for the freed space: Toys, Homewares, Gifts, Fun, Retro and more … products through which you can pitch to new traffic.

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newsagency of the future

Nostalgia activity products can help us find new traffic for the newsagency

Shoppers are loving the re-emergence of games and toys from yesteryear. While they are popular with grandparents for sure, they are also popular with other generations, including millennials.

Take this skipping rope, it is easy to pitch it as a nostalgia gift or a quirky fun gift for a work colleague. It is well packaged for gift giving, making our pitch in-store easier. The Ridleys brand does this nostalgia play well, it is a brand to trust and leverage.

As retailers, we can facilitate this through ranging and placement as well as through our writing on social media where we can provide appropriate context for thinks like old-style skipping rope. We can also facilitate engagement though in-stoe and out of store playing. We can easily pitch fun and this is vital in competitive retail today.

Nostalgia activity products can help us attract new shoppers if we pitch them outside our businesses. For me, that is key. Everything I look at I contemplate through consideration of what new traffic it could find.

The Ridleys brand has its heart where we in newsagency retail today need it. Check out this from their website:

Start with a healthy dose of nostalgia and vintage charm. Add a cool contemporary twist. And a great big dollop of fun. That’s Ridley’s Games all over. A happy blast from the past, when toys were proper toys.

Since we started out in 2008, we’ve been putting smiles on the faces of young and old alike. We’ve resurrected old school classics and created our own unique compendium of games, puzzles, trivia and novelties.

We’ve got plenty of exciting ideas up our sleeves to spark imaginations, banish boredom and rekindle the joy of childhood. And that’s the Ridley’s Games magical formula in a nutshell…

A world where having fun never gets old!

I like it when I can find a brand to which I can relate and which offers product depth that enables a strong story to be told in-store. I’ve been leveraging the Ridleys opportunity for years.

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Newsagency management

Trump on newspapers

Of course, the tweet is not about papers but in response to pressure he feels on a range of fronts.

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Newspapers

Squishies doing better than fidget spinners in the newsagency

Squishies have been performing well for months. While sales to regular shoppers are excellent, their attraction of new traffic is even better.

This high-margin category is already outperforming fidget spinners in terms of full year bottom-line value to the business.

What you see in the lease line display is low in stock weight. Squishies turn fast: 4+ times in two months.

The display attracts kids, who pull in parents. The typical basket has two squishies and several other items from the business. This is where there is terrific value on the category for the business.

I also like that squishies fit with our broader toy and games pitch, enabling us to even better serve those shoppers.

I expect the opportunity with squishies to continue to Christmas and at least early into the 2019 holiday season. It is the direct imported products that are performing best for us as our range is competitive with Smiggle, K-Mart, Target and others in range and price.

This post is about more than squishies. It is about being opportunistic, early to engage with a trend, sourcing outside slower supplier channels, and, promoting widely outside the business to leverage the new traffic opportunities.

This is retail today – playing outside tradition, leveraging high margin and reaching out for new customers who might otherwise pass the business by.

Squishies are easy to dismiss as a cheap toy. In my experience and the experience of retailers who have been in this space for over a year, they are much more than a toy. They are a genuine opportunity for our businesses.

Footnote: to any trolls planning to comment here to seek to distract from the insights shared and the optimism of the opportunity, go on, knock yourselves out. The efforts three or four people are going to in comments here to distract from positive posts is extraordinary. You can see the strength off their concision by their anonymity.

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Gifts

Shop local data attracts kudos

Staff on the road for my newsagency software company Tower Systems have been provided a branded t-shirt with this image on the back. The reaction has been terrific, with people commenting positively about the data shared.

I had the infographic designed as an alternative to the a-frames I see used by small business retailers. I figured that facts could be leveraged to pitch the importance of small businesses in our economy.

Politicians only appear interested in small businesses at election time and event then their interest feels, to me at least, ignorant.

The small business community in Australia is important and valuable. I think we need to embrace every opportunity possible to pitch the facts of this.

9 likes
Small Business

Lottoland’s Tuesday jackpot looks very much like OzLotto

Check out Tuesday Jackpot from Lottoland. As a correspondent pointed out to me, this betting product looks and feels like OzLotto. Here is what they said:

Just wanted to tell you about Lottoland’s newest lottery, the “Tuesday Jackpot” (https://www.lottoland.com.au/tuejackpot)
It looks ridiculously similar to the Oz Lotto. You know – similar logo, you pick 7 numbers from 1-45, the same odds and drawn at the same time as shown here (https://www.lottoland.com.au/tuejackpot/help). The only differences are that it has a minimum jackpot of $8 million and it costs $2/line.
I thought your viewers might be interested to see how Lottoland is clearly trying to get around the betting ban on domestic lotteries.

See for yourself, here are the details from the Lottoland pitch:

Cost per Game & How to Bet on Tuesday Jackpot

Betting on Tuesday Jackpot only costs just $2 per standard game.

Pick 7 numbers from 1 to 45. Each Tuesday night, 7 regular and 2 supplementary numbers are drawn from the Swiss Loto Express. Match all 7 regular winning numbers to hit the jackpot. Check our TUE Jackpot FAQ for more info.

The current jackpot isn’t big enough? Just use Lottoland®’s special Double Jackpot feature at the top of the bet slip to bet for double the jackpot amount!

Don’t want to share the jackpot? The NumberShield option protects your Division 1 winnings – just activate this feature for selected fields or for your entire bet slip.

Never Miss a Jackpot with Subscriptions

A way to bet on Tuesday Jackpot with your favourite numbers for upcoming draws is to setup a subscription. Your bets will automatically renew for all the upcoming draws until you decide to cancel. No need to put in your numbers for every draw plus you won’t miss a big jackpot!

Bet on Tuesday Jackpot with the Lottoland App

With the official Lottoland Australia App you can bet on the lottery, check results on the go and gain access to even more promotions and discounts. Download the Lottoland App for iPhone or Android today!

Tuesday Jackpot System Bet Prices

System Bets allow you to pick more than the regular 7 numbers, providing you with exponential odds of winning. Refer to our magazine article for more information about System Bets.

System Bets for the TUE Jackpot start at $11.60. For a full list of all System Bets please refer to our TUE Jackpot FAQ page.

Lottoland is clearly not going anywhere. It is developing products and promoting them widely, in pursuit of a profitable future in Australia.

3 likes
Competition

Big media news: Fairfax and Nine announce plans to merge

Here is the ASX announcement:

MERGER OF NINE ENTERTAINMENT AND FAIRFAX MEDIA

The recommended transaction:

  • –  Creates Australia’s largest integrated media player
  • –  Enhances position with agencies and advertisers in a consolidating environment
  • –  Enables optimisation of, and incremental investment in, content across FTA, BVOD, SVOD and digital
  • –  Offers data solutions at scale combined with premium content
  • –  Combines Nine’s and Fairfax’s proven brand building capabilities to accelerate Domain’s growth profile

26 July 2018: Nine Entertainment Co. Holdings Limited (Nine) (ASX:NEC) and Fairfax Media Limited (Fairfax) (ASX:FXJ) are pleased to announce that the companies have entered into a Scheme Implementation Agreement under which the companies will merge to establish Nine as one of Australia’s leading independent media companies (Proposed Transaction). The Proposed Transaction will, subject to required approvals, be implemented by Nine acquiring all Fairfax shares under a Scheme of Arrangement (Scheme).

Following completion of the Proposed Transaction, Nine shareholders will own 51.1% of the combined entity with Fairfax shareholders owning the remaining 48.9%. The combined business will be led by Nine’s current Chief Executive Officer, Hugh Marks. Three current Fairfax Directors will be invited to join the Board of the combined business, which will be chaired by Nine Chairman, Peter Costello and include two further current Nine directors.

The combined business will include Nine’s free-to-air television network, a portfolio of high growth digital businesses, including Domain, Stan and 9Now, as well as Fairfax’s mastheads and radio interests through Macquarie Media.

Under the Proposed Transaction, Fairfax shareholders will receive consideration comprising:

  •   0.3627 Nine shares for each Fairfax share held (Scrip Consideration)
  •   $0.025 cash consideration per Fairfax Share (Cash Consideration) together, Aggregate Consideration.

    The Aggregate Consideration implies a:

  •   21.9% premium to Fairfax’s closing price on 25 July 2018 of $0.770
  •   22.6% premium to Fairfax’s one month VWAP to 25 July 2018 of $0.766

    The Directors of Fairfax will unanimously recommend that Fairfax shareholders vote in favour of the Scheme in the absence of a superior proposal and subject to an independent expert concluding that the Proposed Transaction is in the best interest of Fairfax shareholders.

    Commenting on the Proposed Transaction, Nine’s Chairman Peter Costello said: “Both Nine and Fairfax have played an important role in shaping the Australian media landscape over many years. The combination of our businesses and our people best positions us to deliver new opportunities and innovations for our shareholders, staff and all Australians in the years ahead.”

    Fairfax’s Chairman Nick Falloon commented: “The Fairfax Board has carefully considered the Proposed Transaction and believes it represents compelling value for Fairfax shareholders. The structure of the Proposed Transaction provides an exciting opportunity for our shareholders to maintain their exposure to Fairfax’s growing businesses whilst also participating in the combination benefits with Nine.”

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For personal use only

The merger is expected to deliver annualised pro-forma cost savings of at least $50m which will be fully implemented over two years. The Proposed Transaction, on a pro forma basis, reflecting the full benefit of the cost savings, is expected to be earnings per share neutral for Nine shareholders, prior to any consolidation adjustments.

Importantly, the combination unlocks the potential for significant value creation by combining the content, brands, audience reach and data across the respective businesses, including majority owned group companies Domain and Macquarie Media. After completing the Proposed Transaction, Nine will review the scope and breadth of the combined business, to align with its strategic objectives and its digital future.

Nine Chief Executive Officer Hugh Marks commented: “Nine’s strong operating momentum has allowed us to invest in the future of our business through each of 9Now, Digital Publishing and of course, Stan. This merger with Fairfax will add another dimension, creating a unique, all-platform, media business that will reach more than half of Australia each day through television, online, print and radio.

For our audiences and employees, this means we will continue to be able to invest in premium local content across news, sport, entertainment and lifestyle. For our agency partners and advertisers, we will provide an expanded marketing platform with even greater advertising solutions underpinned by a significantly enhanced data proposition. For our shareholders, the merged business will generate an increasing percentage of its earnings from high growth digital businesses that provide a compelling opportunity to generate both incremental value and cash flow into the future.”

Fairfax Chief Executive Officer Greg Hywood said: “The Proposed Transaction for Fairfax reflects the success of Fairfax’s transformation strategy which has created value for shareholders through targeted investment in high growth businesses, such as Domain and Stan, and prudent management of our media assets. The combination with Nine provides an exciting opportunity to continue to drive incremental value well into the future.”

“We are confident that the strength of the combined management team and staff will ensure the continuation of our quality journalism.”

For the year to June 2018, Nine is expecting to report Group EBITDA at the upper end of the previously announced range of $250-260m, and to declare a second half dividend of $0.05 per share, fully franked. Fairfax is expecting to report Group operating EBITDA of $272–275m which is in line with analysts’ consensus, and to declare a second half dividend of $0.018 per share (franked at $0.0083 per share). In both cases, these declared dividends will not be affected by the Proposed Transaction.

Scheme Implementation Agreement (SIA)

Fairfax and Nine have entered into the attached SIA, which contains the customary terms and conditions on which Fairfax and Nine will now implement the merger. The SIA includes a number of customary clauses, and is subject to conditions precedent including Fairfax Shareholder approval, court approval and no regulatory intervention.

Timetable and next steps

Fairfax shareholders do not need to take any action in relation to the Proposed Transaction at this stage. A Scheme Booklet containing information in relation to the Proposed Transaction, reasons for the Fairfax Directors’ recommendation, an Independent Expert’s Report and details of the Scheme will be sent to shareholders in the coming weeks.

It is anticipated that the Proposed Transaction will complete before the end of this calendar year.

Nine is being advised by Jefferies as financial adviser, and Ashurst as legal counsel.

Fairfax is being advised by Macquarie Capital as financial adviser, and King & Wood Mallesons as legal counsel.

3 likes
Media disruption
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