Sketch out the layout of your shop on a sheet of paper. Draw a line across the front two metres. Commit to complete change of the pitch in this front two metres every week. Do this for a month. In most newsagencies, complete change in this frontline space weekly will increase sales. The challenge is the time involved and the need for fresh products to be pitched in the space.
I’d love to find out from readers here if you are playing Pokemon GO and if so the level you are at.
This triple-pack of discounted magazines from Bauer Media Thursday this week had newsagents scrambling for extra space in the magazine department as it is a new title, an expansion in the busy weekly title section.
The thickness of the bag containing the three magazines meant plenty of newsagents could not place all the stock they received into a single pocket. This increases the costs of carrying the additional SKU.
Also, the pack says new issues when the issue of Yours came out last week and the issue of recipes+ came out last month.
Bagged discount magazine packs like this are out every week in the UK. Not in large volume but there are out and in most stores I visited two weeks ago.
I hope we do not see them weekly in Australia. If we did I think the result would be to take purchases from other publisher titles rather than grow overall magazine sales. In this scenario newsagents would lose out.
The Tatts ad currently running vindicates the depiction of newsagents by Lottoland in their TVC. The Tatts ad reinforces what Lottoland mocks.
I am shocked they are running the ad. It is appalling in my opinion – indirectly telling key demos to stay away.
If I had lotteries enemy business I’d want nothing to do with this ad and collateral associated with it.
The early return of magazines is vital to the management of space, cash-flow and labour in the newsagency. My advice is that you not wait for a magazine to reach its recall date for it to be returned. Returning a magazine before the recall data is an early return or a supplementary return.
While not liked by magazine publishers, early returns are the only reasonable mechanism newsagents currently have for managing magazines in the newsagency over which they have control.
My advice is newsagents need a process to ensure early returns are done with consistency.
For early returns to work for you and for you to not deny your business magazine sales you could otherwise achieve, here is our best-practice early returns advice:
If you do early return leaving less stock that you would usually sell and then sell out – I think the distributor ought deny any request for extra stock.
The latest issue of Marie Claire ought to be featured by newsagents selling Hallmark cards as it features the card designs of Megan Hess, a respected Australian designer, who has designed a range of premium cards for Hallmark. The Megan Hess range is a fresh product though which we can reach card shoppers beyond what we often reach with the everyday card range.
The Megan Hess range with the latest Marie Claire is a terrific cross-category opportunity for us.
RN Breakfast this morning had Greg Hywood, Fairfax CEO on air discussing the future of newspapers. It’s worth listening to.
Although Hywood says closure of the Monday-to-Friday print editions of the The Sydney Morning Herald and The Age is ‘inevitable’, that day is still some way off.
It is terrific that Ben Cubby, Editor of The Sydney Morning Herald, proposed newsagents in a tweet this week:
Ben has 22,800 followers on Twitter. We need more editors and publishers tweeting about our channel as the place to access their publications.
Newspower has rebranded for the fourth or fifth time with an announcement earlier this week. It has also announced a new level, Newspower Go. This is like Newspower level from some years ago – more discipline, better deals.
While I think Newspower does need to change, parts of the announcement are problematic in my opinion:
Newspower has undertaken significant research across not only the Newsagency industry, but the broader retail sector and as a result Newspower has developed key strategies to deliver Newspower a stronger future.
Newspower ought discslose to its members the detail of the research and the detail of the resulting strategies as the organisations track record is not great – to give confidence that they have a good plan and that the plan is based on sound research.
NewspowerGo stores will be in targeted locations, designed to attract and engage with younger shoppers; Generation X and Millennials – those that will become your customers into the future.
Gen X and Millenials are newsagent customers today. Strategies to attract them were needed years ago. There are newsagents enjoying terrific success with these generations.
Stay tuned – the first NewspowerGo stores are scheduled to be opened later in the year.
This makes the an announcement that there will be a further announcement. Newspower is coming at this transformation very late. They should have stores running now so the announcement earlier this week was here – come see it live.
We are entering a new era of growth and development and as part of the launch of NewspowerGo we have also refreshed the branding for Newspower. Newspower was established over 20 years ago and is the Largest Newsagency Marketing Group in Australia and our brand is strong.
Newspower has, from what I understand, user 600 stores. This is down from something like 1,200 stores a few years ago. considerable decline in numbers does not represent strength. If I was leading Newspower I’d pull back from talking about size and focus on stabilising member numbers and then achieve growth before talking about growth.
I am a director of newsXpress, a competitor of Newspower. The weakness of Newspower in recent years has hurt more than Newspower and member businesses, it has hurt the channel. This is why Newspower has to get it right, why they have to fix their situation to drive the viability of member businesses. The rest of the channel is depending on it.
Newspower should start by developing its own ideas. I had to ask a Newspower staffer leave a confidential invitation-only session I was speaking at recently. I only realised they were there soaking up commercially sensitive ideas when someone else pointed it out. I wrote to Helen Dowling about this on June 17 and am yet to receive a response.
Our channel will benefit from strong competition between all of the marketing groups. The key word is competition. Competition has its roots in being difference, not copying. It benefits from being first with initiatives, not years late.
Historically, Newspower’s biggest challenges have been a weak uninspiring board, GNS controlling key marketing seasons and control at the state level on what is done under its name. For the future to be bright these three things need to be addressed.
Gotch has experienced some tech issues that delayed sending accounts. They will start going out tomorrow and should all be out by Friday.
One reason I bought my first newsagency in 1996 was to put into practice for myself what I was telling newsagents. It was an invaluable experience and continues to be today. Here is a video I have just shot where I talk about another of my newsagencies today and what can be achieved in a competitive situation .
I am sharing this not to gloat but to reinforce that newsagents can grow their businesses and attract new shoppers. It takes planning, based on business data and with a focus outside the usual walls of a newsagency business.
The outcome I hope for from the video is more newsagents pursue change … for growth.
Note: the newsXpress logo is on the first shot as the business I am talking about is a newsxpress business.
Coles Supermarkets yesterday revealed a fresh approach to small format it says will target c-stores like 7-Eleven. This was inevitable given how closely Australian supermarkets follow UK trends. UK supermarkets have been doing this for years, introducing small format stores in high streets, competing with c-stores and local newsagent businesses.
Walking down the main street in UK cities and towns you see three, sometimes four, supermarket brands operating small format businesses.
This is one of the reasons I say a c-store model for newsagents is not a smart move. Supermarkets are well-resourced.
Newsagency businesses are too small and too under-resourced to compete with the players already well established in the convenience space. I am certain newsagents cannot win against the power of the slurpee and the might of Coles and Woolworths.
If you are ever at Sydney airport, check out this slim newspaper stand at the c-store on the ground floor level of the nanas terminal, next to the baggage carousels. While it is not attractive, it is ideal for the job: small footprint, easily moved and able to hold stock on the bigger newspaper days.
Further to my post last week about the New Idea $1 a week subscription offer, Bauer media has been running such offers for a while. Their most recent was a Woman’s Day $1 an issue offer.
As I have written recently, offers such as this are a slap in the face to newsagents. The 77% off cover price and free delivery are compelling to price-sensitive shoppers.
Weekly sales churn indicate readers of these weekly titles are price-sensitive. Whereas in the past 65% of purchases on a Monday would be Woman’s Day and New Idea togather, today, that number is often under 30%. I think this is because people are more conscious about what they spend on this type of content.
The more intense price sensitivity today is a key reason for us to be frustrated with and concerned about the $1 subscription offer for the weeklies.
Another difference today compared to years ago is that today there are no borders between types of consumers. By this I mean all offers are more accessible to all people.
For example, a subscription offer pitched to a specific target group to attract their engagement is easily promoted more widely in the mainstream community. Newsagency shoppers are aware of the $1 an issue subscription offers. Indeed, I know of several instances where customers have pointed to the $1 offers recently put about in commenting how much money newsagents make.
A sub offer of, say, up to 50% is okay in my view. I understand it. I don’t like it but I understand it. 77% off with free postage is nuts. It disrespects us and those who shop with us. It speaks to an important focus for the publishers, the same publishers often telling us how important we are to them.
News Corp. is asking newsagents to install an iPad on the counter as part of a newspaper loyalty offer connected with the Rewardle loyalty program. Rewardle has also been pitched to newsagents by the ANF (no ALNA).
I have seen the Rewardle terminal in several newsagencies. In each case, the newsagent said yes to the terminal to be installed because it is free.
Here is what I think is wrong with this News Corp. promotion and why it is not good for a newsagency business.
Regardless of the newsagency software you use, my advice for newsagents is to leverage that for a whole of business loyalty offer. You need to be in control. You need a loyalty offer that serves your needs for your complete business. You need a loyalty offer that nurtures customer engagement for your future beyond a print news product.
The key focus of newsagents right now has to be on business transformation. By transformation I mean attracting new traffic by resetting the business from the shop floor out, pitching new products with a fresh approach to merchandising backed by a customer service experience that is unlike you would have experienced in a newsagency of the past. I don;t see the News Corp. Rewards loyalty program as serving this need.
The News Corp. Rewardle offer is not about transformation. Indeed, I see it as distracting from business transformation.
What I have written here can also apply to other brand or supplier specific loyalty offers as they focus on the brand or supplier ahead of the newsagency business.
Any loyalty pitch in your newsagency needs to be focused on your business, the whole of our business. You need to own the loyalty program so you are able to drive its focus, track the rules and ensure the reward for your customers is exactly what is right for your business.
Just because something looks bright and shiny and is free does not make it good. That may have been the case in a newsagency of the past. It is certainly not true for a newsagency of the future.
The leadership team at GNS ought take the opportunity of the departure of the organisation’s CEO to consider the future of the business, to undertake an honest appraisal of recent years and lay out a plan relevant to the future rather than pay homage to past.
Stationery retail and wholesale has changed. Newsagencies have changed. Retail has changed. And while GNS has changed, it has not changed enough. I think this is why the organisation is confronted by the most important challenge of its history, the challenge of survival.
Rather than appointing a new CEO right away, the GNS Board needs a plan, they need to demonstrate they have the leadership skills necessary to guide GNS to a future.
While you could argue the Board needs to hire a new CEO to come up with a new plan, in that scenario the Board needs to be prepared for a new CEO to ask for a new Board. That is where I would start. I’d want a Board dominated by high-calibre strategists who bring fresh eyes and perspective to GNS. I’d ensure the number of newsagents or ex-newsagents on the Board is in the minority.
On the future of the GNS business itself, I suggest implementing changes to make the business more efficient, relevant and future-focussed. I have canvassed most of these ideas with GNS in the past.
But before I get into the ideas, I acknowledge some of these are radical. The thing is, GNS is in a challenging situation right now because the organisation has not kept up, it has not been disruptive or radical. I’d go as far as to say the challenge confronting GNS today is for survival.
Today, there is no time for the old model. The future of the supply of stationery to newsagents is generationally removed from the GNS model today.
Here are my suggestions.
I don’t see this list as complete. It is where I’d start, urgently. Steps beyond this list would depend on what is discovered through the process.
Our channel will have somewhere between 2,000 and 2,500 newsagency businesses in the next year to eighteen months. GNS needs to be structured to deal with this, so these businesses can grow stationery sales.
Many retail businesses will be out in the community with Father’s Day offers from this week on. The promotions will most likely have a sameness to them. My challenge today to newsagents is to be different this Father’s Day. Come up with a never before used approach to promoting Father’s Day. Get noticed for this and not the same old Father’s Day cards and gifts you are expected to carry.
Too often I see newsagencies holding stock that does not sell, wasting capital, space and labour. My advice today is to review how you buy and to insert a delay or barrier to the process. Appoint someone else who must sign-off before you place an order. Their job is to challenge you, slow you down and test whether your decision is the right decision.
Buying is a tough job. Get it right and it can power a retail business to terrific success.
Your marketing message is more likely to gain traction if it is fresh rather than promoting something already well promoted. I see no value in promoting outside the business weekly magazines, lottery games or newspapers, unless there is a unique approach you can take that ill get your marketing noticed for your business.
Large front of store, front window or other marketing of these products is a waste in my view as all you are doing is adding your voice to the many voices already out there.
Great to see Who and New Idea, both a Pacific Magazines mastheads, promoting newsagents on Twitter:
Melbourne Gift Fair kicks off today. I am excited for the opportunity for my POS software company, for the newsagents I will catch up with and for suppliers I will catch up with.
My software company has been exhibiting for years. It has been invaluable in connecting with gift and homewares businesses, and newsagents as they transform fro the old to new. I have seen some tremendous transformations.
Plenty of suppliers have evolved over the years. Those that have not see the results in their sales.
While there is still some ignorance toward and about newsagents on the floor of the Gift Fair, most suppliers welcome our channel. Those that don’t suffer.
There are some suppliers who choose to not do this fair. I think they miss out as a result.
This Melbourne Fair is also good for what happens outside the fair. The networking opportunities, drinks, dinners – plenty of talking, sharing news and exploring ideas.
I am looking forward to a terrific few days.
This will evolve week by week.
The ANF has rebranded itself with what appears to be a lottery first focus with this announcement:
ANF Announcement
Building strong businesses for our members is at the forefront of our decision making processes at the ANF. The Board consistently reviews and adapts how we can best represent members effectively.
Our commitment to providing our members with the most relevant industry information continues into 2016; we are building on existing relationships with our partners; developing new partnerships and assessing how the channel can grow to continue to be sustainable in the evolving retail and distribution environment.
As part of this work, the ACCC at our request recently included lotteries in our ACCC National Collective Bargaining Authorisation, with the support of Tatts Lotteries. As a result, the ANF board at their most recent meeting, passed a motion to incorporate the word ‘Lottery’ into our trading name as well.
There will be no change to who we are, and what we do to support all members. The inclusion of the word ‘Lottery’ within our trading name is one that makes sense. It recognises that Lotteries have been entrenched within a majority of your retail businesses for many years, and also the important work we already do for members in this area. The change also further strengthens our representation for our members with State and Federal Governments.
The Australian Newsagents’ Federation is undergoing a rebrand and refresh of our company identity. From 1 August 2016 The ANF will trade under the name Australian Lottery and Newsagents’ Association (ALNA).
We will continue to trade under the same ABN and ACN. We will also continue to maintain ownership and hold authorisation of the N logo.
Inside Out magazine from News Corp. is available for $6.00 at Coles supermarkets. This is 15 cents less than the cost [price to newsagents. News Corp. facilitates Coles making our channel look expensive – like they did with their recent newspaper offer. Shame on Coles and News. This is evidence of how much they care for and respect our channel.
Until News Corp. fixes this I have no interest in carrying Inside Out in my businesses.
This New Idea magazine subscription offer from Pacific Magazines is frustrating because of the price and frustrating because it is pitched to people who purchase the magazine in newsagencies and other retail businesses.
I am told the offer was included in the magazine last week and again this week.
The deal is 12 issues for $12 and after that each issue is priced at $2.85 billed quarterly.
With the majority of newsagency purchasers of New Idea weekly regulars, this deal would appeal to them. However, the detail in the fine print that the magazine will arrive a few days after on-sale makes the offer less appealing. But people won;t see that unless they dig. What the do see is the magazine is accessible at $1 an issue for 12 issues.
I understand the role of subscriptions in the magazine model and have often written here that they are necessary to the publisher model. However, that was when subscription offers were at 25%, 30% and 40% off retail. This offer is considerably more.
A massive 77% discount off cover price plus the value of free postage does not make sense to me. This is a US type magazine subscription offer. It feels desperate.
The offer disrespects newsagents in my opinion as we are continually told by publishers there is no room to go beyond 25% gross profit from the New Idea cover price. It is hard to accept that when you look at this deal and the costs you know that would be associated with it.
I would have preferred Pacific Magazines to come to newsagents in advance of the offer being put to consumers with an explanation for the offer, so we have an opportunity to understand any context that may be relevant to us. It is disappointing this did not happen, yet not unusual in a channel that is seeing several our long-term traditional suppliers more and more seek revenue outside our channel.
The times certainly are changing in and around our channel. Newsagents need to be actively engaged to keep up. This 77% discount off cover price for New Idea is a wake-up call to those newsagents who are yet to embrace significant change in their businesses.
While the New Idea discount of itself is not the reason to urgently embrace change, this move on top of newspaper and magazine sales declines, the growing migration of lottery sales to online, tougher competition from deep discount and other retailers and challenges around stationery and cards focuses our attention on what we can do to grow our businesses, to attract new shoppers. Snd, yes, I think there is plenty we can do.
While the New Idea move will cost my business little if any measurable GP, it damages perception and that matters.