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

News Corp. and Tatts in joint promotion

I have heard from newsagents in the last hour and a half about a joint promotion announced by Tatts today. The responses I have received from newsagents so far include: groan, really?, ugh, what will they think of next? and, groan (again):

There is some very exciting ‘news just in’ for Set for Life, not only did we have another 1st Prize winner in the draw last night – but there is also a fantastic promotion running this May.

For the entire week 15 – 21 May any customer that purchases a Set for Life entry will receive a complimentary News Corp newspaper!

This promotion is all about increasing the awareness and trial of the new game Set for Life with new customers, whilst also increasing circulation of the News Corp titles for the entire week. The great news for you is that you will receive full commission for the papers given away as part of this promotion (it will be as if you sold the newspaper even though it was given away for free!) as well as full commission for the Set for Life products that you sell.

This is a great opportunity for you to invite your newspaper customers to trial the new game Set for Life, and talk to every customer about the game.  It’s also a wonderful time to encourage customers to play using their own numbers, with Entry Coupons being distributed via every copy of the The Sunday Mail on Sunday 15 May.

Be sure to keep an eye out for more information on how this promotion will work in-store and how you can support the offer.  Make sure you also share the exciting news with your customers about the latest winner and keep an eye out for the winners story!

6 likes
Lotteries

What have you done about the price rise of postage stamps?

A newsagent expressed concern to me yesterday about the impact of the price increase for postage stamps on their greeting card sales. I asked whether they had taken steps to mitigate the situation, to soften the impact. They said no. I asked if their marketing group had offered advice, they said no. This surprised me.

Back in January newsagency marketing group newsXpress published advice to its members on steps available to mitigate against the impact of the stamp price rise. I wrote the advice. I saw it as common sense. I expected other newsagency marketing groups would od similar as providing such advice is a key benefit marketing groups should deliver.

To assist all newsagents, here is the newsXpress advice:

SOFTENING THE IMPACT OF THE STAMP PRICE RISE.
NEWSXPRESS BUSINESS MANAGEMENT AND MARKETING ADVICE
– JANUARY 25, 2016 –

The 42% increase in the cost of posting a standard letter (or card) could hit greeting card sales – unless to act now to mitigate the situation. Yes, there are things you can do, opportunities you can embrace to make soften the impact.

To our knowledge, no industry association, no card company, no marketing group and no greeting card association has offered any advice or support for newsagents in the wake of the extraordinary price rise.

Not everyone has to pay the new price of $1.00 per item. For example, people with a MyPost Concession Account can post letters and cards for 60 cents.

The following Australian Federal Government concession cards are accepted as proof of eligibility for a MyPost Concession Account:

  • Pensioner Concession Card
  • Health Care Card (all types)
  • Commonwealth Seniors Health Card
  • Department of Veterans’ Affairs Card
  • Veterans’ Repatriation Health Card

If you have customers with any one of these cards, they can apply for the postal concession. Applying is free. Here is a link to the concession account form online from Australia Post:

http://auspost.com.au/media/documents/MyPost-Concession-Account-application-form.pdf

Print the form out and hand it to customers. This demonstrates you offering an appreciated customer service. If you have a retirement village or nursing home in your area, give them plenty of copies of the form – show you care about helping them save money.

Offer to help complete the form for customers.

Australia Post does not actively promote the MyPost Concession account. You should and in doing so you are likely to be appreciated by the customers that benefit. Australia Post reports that 5.7 million Australians are eligible for this concession but that considerably less than half have applied.

The MyPost Concession Account allows them 50 concession stamps a year.

Here are other ways you can make greeting cards more appealing in the wake of higher postage costs:

  1. Have a loyalty offer.
    1. One approach is Discount Vouchers as they provide a cash amount the customer saves off their next purchase. The amount printed on the receipt is perceived as being of immediate value to the shopper.
    2. Another offer could be Buy X get Y – like the Hot Press range from Hallmark. Three cards for $10 would be seen as a saving by customers.
    3. Another offer could be like the Hallmark buy 8 cards and get your 9th card for free. The key in our view with this is you need to date limit the offer.
  2. Run a free stamp day promotion. This is a challenging promotion in that it could be expensive. Therefore, our suggestion is you set the bar and target committed card shoppers. People spending more than $25.00 in cards get a $1.00 stamp for each $10.00 they spend. An alternative could be – people buying 8 or more cards in one purchase get 8 cards. The goal with either approach is to get people purchasing more cards than is usual in a single purchase.
  3. Improve your card offer. The postage price hike will get some people thinking twice before purchasing a card. It is vital you confront this with a more compelling card offer, a better card department and placement of cards in better impulse purchase locations in-store. Placing cards with gifts, for example, can see more cards purchased with gifts – to be handed to recipients with the gifts.

The alternative is to do nothing. If you do nothing you may or may not be impacted by the postage price hike. The newsXpress view: it is better to lean into a challenge, to be on the front foot.

Footnote: I have shared this advice today so you can access the advice itself and so you can see one example of the type of resources available to newsagents who want options beyond being average. Whether through newsXpress or elsewhere, there are people who will help you grow your business.

16 likes
Greeting Cards

What do people think about the dot-to-dot magazines?

IMG_8817Some publishers are saying the dot-to-dot is the new adult colouring. I am not so sure. with adult colouring it started as a movement first and magazine publishers followed. I can’t find any such movement re dot-to-dot predating the engagement by publishers. Dot-to-dot appears to me to be magazine publishers trying to create demand, to fill declining sales in the colouring space. While there is nothing wrong with that, supply needs to be fair otherwise we will early return with no space to store the stock.

4 likes
magazines

WH Smith report double-digit profit growth

For the six months to February 29, UK retail group WH Smith has reported 11% growth in pre-tax profit. In a Business Matters report is this:

It comes on the back of an improved full year performance last year, in which adult colouring-in books were singled out a huge trend. “Colour therapy”, as WH Smith refers to it, continues to be a huge driver of sales.

I was in several WH Smith stores in the UK a few weeks ao and note they continue to devote considerable floor space to this segment.

The BBC has reported overnight an expansion of Post Office operation into 61 more WH Smith stores in the UK taking the total number to close to 200. The BBC story includes this:

Post Office chief executive Paula Vennells said: “We know that people place huge importance on the presence of a Post Office branch on their High Street.

“Our collaboration with WH Smith will help to secure this, as well as bring new investment into the network.”

I could not find anything in the profit announcement about Australia other than a note about growth in numbers of stores. In Australia, WH Smith owns Supanews, Kennys Cardiology, Wild Card and Gifts and their own branded businesses.

6 likes
Competition

Helping a small business newsagent to confront challenges

I have been working with a newsagent on challenges in their business and thought this summary email may be useful to other newsagents, especially those with traditional businesses: magazines / papers / lotteries / tobacco / cards / stationery – and little in the way of gift and good margin traffic generating products.

So, here is my email. I have washed it of any identifiable information out of respect for their privacy. The business is in a small centre, in a competitive situation. New owners have been in for six months. he old owners had been in the business for many years.

Note: I am direct in the correspondence as I have found this to work best. There is no point in sugar-coating anything if affecting change is the goal. Here is the email:

It was terrific to meet a couple of weeks ago.

I have now gone through the performance reports for you business an offer these comments for your consideration:

  1. You are not using the software properly. By this I mean, you are not tracking stock on hand for items you sell. This makes it easy to steal from the business and difficult to provide management advice to the business. For example, in 2015, $25,397 worth of stationery was sold without scanning it. This has denied you the opportunity of understanding what has been sold specifically. To address this: receive all inventory in through your software, scan all sales and scan all returns.
  2. Cards. 30% of card sales cannot be adequately assessed as they are not being tracked by category. This is because of the data issues noted above. No, in terms of card performance, you are trending down 11% year on year. This suggests the card department needs a considerable overhaul. If I look more deeply at Everyday Counter Cards, I can see sales are down 5% year on year – this is below the trend reporting growth in other stores.
  3. CIGARETTES. Sales are tracking at $746.00 a week, down 24% from a year earlier. You have to consider the cost of the space. If you ripped out the units and put in shelving to promote higher margin and unique product could you achieve a better return on the space and the inventory investment.
  4. Magazines. Sales are down 16%, more than in an average newsagency, close to double the decline in fact. I think you need to relay the magazines and refresh the offer urgently to arrest your decline. At the same time, you need to improve space efficiency, cut your space allocation by 25% without cutting range and thereby reducing the operating cost of the category without impacting sales.
  5. Newspapers. Sales are down 4%. This is good compared to the industry trend. That said, I think you could lose your old-school paper stand and place papers in a less expensive location, freeing the current space for more effective use in the business.
  6. Stationery. Down 35%. This is a disaster. Your stationery needs work to get back to where it was. I suspect this is due to poor management of the category. When I looked at the range in store I was left thinking – what do you stand for. Y0u had a bit of everything but without being strong in several key everyday areas.
  7. Gifts. The 212% growth is good. Based on your card sales and considering newsagency channel benchmarks, you could reasonably grow gift sales y another 300% from where you sit today. Considering the store layout, I think you cold do this without capital investment on fixtures.

Right now, your focus has to be on getting your data right for without more accurate segment level data you cannot reasonably measure the performance of the business. So, this would be my immediate focus: get the data right. At the same time I would relay magazines, move papers, bring in more gifts and remove tobacco replacing that space with male-oriented collectible and or gift lines.

I think most of the changes could be done with little or no capital investment in fixtures and no more than $5,000 investment in new supplier lines.

I would be happy yo help you source appropriate product lines. That advice would come from card and other sales data – hence the importance of getting your data up to speed first.

The business overall still feels like a traditional newsagency. That requires urgent change if you are to be competitive with the businesses nearby that are competing with you. The changes you have made this year step you toward the right direction. More needs to be done, and quickly in my view.

Thanks for the opportunity to look at your data and visit your business. I am confident you can be tracking good growth soon and for little cost.

I have attached the reports relied upon for this analysis for your information. Note, I have concentrated on the reports comparing the first three months of this year with the same period from last year.

15 likes
Newsagency challenges

State based marketing collateral for a national campaign

IMG_8799 (1)The different collateral being used by News Corp around the country for the coin promotion is interesting. The photo is from a newsagency in South Australia. I like this free standing unit. It would work well in a shopping centre. The challenge for this display unit, however, is the cost of the floor space for what is a low margin campaign.

The return on investment aside, the different approach to campaign management, marketing and in the papers is fascinating. It speaks of the differences between the various outposts of News. The state based silos remain strong.

5 likes
marketing

Is it time to change friends in/of your newsagency?

Who do you talk to about your retail business? Are they sympathetic, pandering almost? Or, do they challenge your perception of your business?

Do they agree with everything you say? Do they offer pity as a response for you explaining your situation?

Good friends will challenge what you say. They will ask tough questions to test what you say about business performance. They will not put up with a victim mentality. They will want to know what you are doing to improve your situation and that your actions are rooted in your business data.

If your friends don’t challenge you when you talk about your business consider seeking out others you can talk to who do challenge you.

Owning a business of any size can be tough and lonely. Owning a newsagency in 2016, in the perfect storm of channel transition, print decline, migration of sales online and stronger than ever competition is own of the toughest retail business ownership gigs going around.

In the business it is rare you will be challenged. In your immediately family, too often, you will not be challenged. This is why you need to seek out those who could and will challenge you. You need to be challenged. Your plans need to be tested through tough questioning. While some good friend will do this for you many will not.

So, do you need to change your friends?

Seek out people who will give you truthful assessment of what you say, people who will have an opinion and be unafraid to share it. You want people who will actively listen to you and give you their insights.

Seek out people who will want the same from you. The ideal friendship is one that is equal, open and honest in conversation. This is what retail business owners need – people who can help them see what they may not be seeing for themselves.

Footnote: only you can know your situation, your challenges and your friends. The purpose of this post is to ask the question, so you can conclude what is right for you.

10 likes
Management tip

AFL licenced products important in the newsagency

With so much AFL generated traffic for footy cards and newspapers, it is good business to have a broader range of AFL products. While we have the usual mix of gift items. There are a couple of products that stand out for a special mention, the socks and the keychains. We have both in good impulse purchase locations and both work a treat for us: good margin, easy impulse purchases, leveraging destination shopping.

IMG_8719 IMG_8874 (1)

This is one example of how we can leverage lower margin destination traffic for greater margin dollars in a purchase: good buying, tactical placement and having the range in at the right time in the season.

Timing is everything though. The time to get in on these opportunities was months ago to buy right and to integrate the opportunity with your in-store plan for display.

Actions like these, around a sports season or the like, need to be undertaken deliberately, as part of your business growth plan to maximise the traffic opportunity.

No one will do this for us.  Moves like these we have to make for ourselves.

1 likes
Management tip

What is the point of the ANF marketing?

Cf0TthHWcAAGRWw.jpg-largeThe ANF is pitching this ad on social media. I guess they are doing this so they can say they promoting newsagents. While the message is not one that is ideal, in my opinion, for the channel, the bigger problem is the branding. The N means nothing. There is no discipline associated with it, there are multiple versions. I suspect the majority of the 3,500 newsagencies in the channel do not use it. The ad is is not promoting something delivered with consistency. It has not been thought through.

8 likes
marketing

The Saturday Paper supports newsagents, we should support it

p1_screen_shot_2016-04-08At a film festival on the weekend, I saw ads on the screen for The Saturday Paper. The only retail outlet for the newspaper notes was newsagents. This continuing support for our channel as the sole retail channel for The Saturday Paper deserves support from us for the most valuable action a supplier can take in support of us is the promotion of our channel as the destination for purchasing their products. While volume is low compared to cap. city dailies, customers purchasing The Saturday Paper are loyal.

16 likes
Newspapers

Having fun with Mother’s Day in the newsagency

IMG_8902Mother’s Day can be pretty boring when it comes to gifts in newsagencies and gift shops. There is the usual run of photo frames, plaques, mugs and inspirational books and while they serve a purpose, they are easy gifts, the sorts of gifts you can get from any store.

We have sought out more unique gifts, like this quirky book “How it works” – The Mum. It explains what the mum is and how it works, in a retro style. The book is a ton of fun.

We have the book as a centrepiece gift in our large Mother’s Day gift display as we like the statement it makes about us the gifts shoppers will find.

It is a thrill when someone picks up the book and has a laugh. That’s when you know you have a winner of a product.

6 likes
Gifts

Who is chris_selina on ebay and how can they offer 20 full sets of the 2016 Anzac To Afghanistan Coin Collection

Screen Shot 2016-04-11 at 7.07.07 amOn ebay just now, chris_selina has sold 15 of the 20 sets available of the 2016 Anzac To Afghanistan Coin Collection, a collection not yet released.

How can this be? The full set is not out yet.

Screen Shot 2016-04-11 at 7.12.56 amAlso on ebay this morning, smartdog_au has sold 7 of the 10 full sets they have available of the 2016 Anzac To Afghanistan Coin Collection.

The set of coins will be released over time and even then only with the purchase of a newspaper. Only someone with easy access to full sets would be able to make offers like these on ebay for the volume on offer.

If acquired without the associated newspaper purchase, the margin is excellent.

These offers being out now on ebay makes a mockery of the process we are engaged in with News Corp. The offers devalue the promotion. They also show there is leakage in the process.

The photos online for chris_selina suggest the seller is a newsagent.

UPDATE: 11/4/2016 @ 7:08PM. I did a Google search just now and here is what comes up – see the ads to the right – more sellers.

Screen Shot 2016-04-11 at 7.06.32 pm

Full collections are also available on Gumtree.

23 likes
Ethics

The role of newsagents in promoting Chemist Warehouse

IMG_8934Chemist Warehouse has a sale catalogue out now called The House of Wellness – see the photo – the same title of the ‘magazine’ News Corp. requested newsagents to hand out three weeks ago as a ‘gift’ as I wrote about here. The title is also shared with a radio program now running on the Fairfax owned 3AW and sister stations elsewhere on the radio network.

Put all this together and we can see The House of Wellness for what it is, an integrated marketing campaign for Chemist Warehouse. It is even more clear that the magazine we were asked to hand out as a free gift was a key element this integrated comprehensive marketing campaign.

To me, it is is even more evidence of News Corp. undervaluing newsagents for the role it requested of us in what for them is an ad revenue activity.

News Corp. needs to call The House of Wellness what it is.

11 likes
Ethics

The People’s Friend and Reader’s Digest made fore each other

IMG_8892The latest issues of The People’s Friend and Reader’s Digest magazines sit well together so that is what we have done. Placing Reader’s Digest in front of The People’s Friend will not hurt sales of the latter. Hopefully, the simple move drives sales of both that we might otherwise not have achieved.

Take a moment and make this dual pocket location – if the full cover can be seen as you can see in the photo. You’ve got nothing to lose.

6 likes
magazines

Sunday newsagency challenge: reconfigure your pens

Pens can account for a third of your stationery sales where stationery does not include ink. Pens can give you the best return of space and best return on inventory investment. They respond well to a refresh of the display, professional branding, easy access and good customer service.

Lift your game on pens and expect to lift your revenue.

11 likes
Management tip

Sunday newsagency marketing tip: use your customer display to reinforce marketing messages

IMG_8720A customer display connected to each computer at your sales counters running newsagency software is valuable in reinforcing marketing messages. As well as showing each item scanned and the total sale value, the display can display whatever you choose. In the example I have included from my business, I use the display to reinforce the message about discount vouchers that are handed to customers at the counter position, next to the display. I have had customers ask for the voucher prior to ringing up their sale – showing that some read the display, thereby reinforcing its value as of of many marketing platforms for the business.

The most effective display messages are those that are easily understood and where the displays themselves are placed such that they are not competing with too much else for visual attention.

Note: any newsagency software can offer the displaying of marketing messages on a customer display.

9 likes
marketing

Sunday newsagency management tip: next time you go to say I never received it…

The next time you go to respond with I never received it when asked about an email, a letter, a fax or a phone call, check yourself and think about the processes you have in place for communication with your business.

Are your processes solid and consistently followed?

If the answer is yes, this post is not for you.

If the answer is no, it is possible you did get the email, fax, letter or call but that you lost it or it did not reach you.

Too often I hear from suppliers of newsagents saying they did not receive a communication, marketing collateral or even stock only to be told, later, that it was in the business all the time.

  1. Establish a goods inwards process where all mail and packages received by the business are processed through by one location and in a strictly consistent way.
  2. Manage emails so that every business email is checked and handled.
  3. Have one place where all faxes are placed, if you still receive faxes.
  4. Have a strict process for handling calls. If calls are a problem, hand out your mobile phone encouraging people to use that.
  5. Get everyone in your business and engaging with the business, including delivery drivers, following your processes.

Own the challenge of not losing information, marketing material and products. Suppliers will love you for it.

10 likes
Management tip

Most Australian politicians fail on leadership and this hurts small business retail

As another week comes to an end there is little to show on the leadership front from politicians, especially in terms of leadership on matters of interest to small business retailers.

2016 could be one of the most wasted years in Australian politics for we are back to regular announcements of shifting budget allocations from here to there but with little progress.

On top of inaction from people who are supposed to be leaders we have double standards on show. The government appears set to shut the current parliament early for political expediency. they are doing this on the back of the Trade Union Royal Commission. This at the same time as we read about more reports of corruption in major Australian banks yet the same government politicians are saying there is nothing to see here.

My personal view is Australian needs a federal independent corruption commission with a remit across politicians, public servants and business.

Establishing such a commission would be an act of leadership. Such leadership would boost confidence in the community and we would all benefit from a boost of confidence.

I am tired of federal government MPs telling us we have to live within our means. Such talk challenges confidence, it slows spending and spending is at the core of the economy, especially in the small business niche of the economy we inhabit.

It is politicians who have to live within their means. They are the people achieving stellar pay rises each year with access to extraordinary expense accounts and making decisions that favour mates and those who support their political views.

I include all sides of politics in this spray.

Look at how Labor governments in the states ripped from the newsagency channel hundreds of missions of dollars of revenue from transport tickets over the last ten years.

Look at the decisions by state governments of various colours selling lottery licences to Tatts and then watching by as Tatts damaged newsagents with higher fees and draconian business practices that sig=nificantly increase the cost of doing business.

Look at the treatment of small business by the ATO compared to big business. I know of small business owners who are pursued for monies not owned and when the ATO realise their mistake there is no apology, no compensation for the cost of proving that the ATO was wrong.

Look at the free trade agreements that are focussed on a small niche of businesses in Australia.

Look at the NBN. We are spending billions on a mediocre network that will not provide the productivity lift the country needs.

Look at the failure of successive governments to adequately deal with low or no tax on online purchases coming into Australia by the plane load, competing with local shops.

It is cheaper for me to subscribe to some US magazines and have them sent to me from overseas than to purchase them locally.

Look at the red tape. Successive federal governments said they would reduce red tape. Clearly the Australian Bureau of Statistics, The Australian Taxation Office, the various State Payroll tax Offices and other federal and state agencies are yet to get the memo as I am confronted by more red tape that two years ago.

Look at the times this year and previous years around calling elections. These games are 100% about them looking after themselves. These are the people who legislate the regulations that hold plenty of Australian businesses back. While they control so much of what we do and charge us for the pleasure they seek the maximum freedom for their own selfishness.

This is nuts.

We in small business was to be able to run our businesses efficiently for the benefit of those we serve, those who work for us and for our own families. To do this we and our communities need to feel optimistic and we need a commercially nimble environment. Thanks to a lack of leadership in Australia all we have are words and political games.

I don’t care which side wins the election on July 2, or whenever the federal election is, as long as they deliver leadership. I don’t have to agree with them on everything – as long as they are strong on leadership and consistent in delivering what they say.

I saw former conservative Prime Minister John Howard on the SBS Insight program during the week, talking abut gun control following the Port Arthur massacre.  I was happy to see the Howard government voted out and felt he overstayed his welcome as Prime Minister by four ormolu years. That said, watching the SBS program, I realised that even though I did not like plenty of what he did, I missed his leadership. I knew where I stood.

I think this is what we are missing today. We don’t know where we stand as a country. An announcement is not leadership, it is not standing for something.

This matters to small business as it goes to how Australians feel. We in small business rely on this for sales growth.

Poor leadership from our politicians = poor sales … almost regardless of which party is in power.

Our channel is undergoing extraordinary transition during a time of extraordinary economic transition for the country. How our businesses come out of the transition depends on your leadership. I hope newsagents are better at leadership of their businesses than our current batch of politicians are at their jobs.

19 likes
Ethics

No print newspapers in the hotel

IMG_8669More and more hotels I check into no longer offer print newspapers delivered to the room door in the morning. The card in the image is what I was handed when I checked in to a hotel last week. The instructions on the card provide free and easy access to newspapers on my phone, tablet and laptop. The service makes sense to me as a travelling consumer while I understand the challenge it presents for those in print distribution businesses.

I share the story here today to keep people informed about how this digital disruption to print is spreading.

2 likes
Media disruption

Nick Chan joining Bauer Media as CEO

The news today from Mediaweek that Nick Chan is taking the helm at Bauer Media is significant as he brings good Aussie publishing experience to the company that has not had this for a few years. Here is the announcement:

Bauer Media appoints Nick Chan as ANZ CEO
Bauer Media is pleased to announce the appointment of highly experienced media executive Nick Chan as its new chief executive officer for Australia and New Zealand.

Chan has worked at some of Australia’s biggest media companies for more than three decades. Most recently he was chief operating officer at Seven West Media and prior to that ran Pacific Magazines for ten years. He started his publishing career at ACP Magazines, which Bauer Media acquired in 2012, where he worked for 18 years rising to become chief operating officer. He also chaired the magazine industry’s peak body, Magazine Publishers of Australia.

Bauer Media interim CEO Andreas Schoo said: “We are delighted Nick is joining Bauer Media to head our Australia and New Zealand operations. His understanding of the media market and leadership experience is extensive and he brings that knowledge to Bauer at an exciting time in the company’s development.

“Having run media businesses for many years Nick is aware of the challenges facing the industry and publishers in particular and he has shown great strategic insight into how to best manage this evolution. For a multiplatform media business spanning magazines, digital and live experience I believe he is best placed to ensure the future prosperity of Bauer Media.”

In addition to Bauer Media, Chan will oversee digital division Bauer Xcel Media, content business BauerWorks, Bauer Trader Media and Bauer Books.

Speaking on his appointment, Chan said: “Bauer’s portfolio of magazine brands, digital properties and events is second to none in Australian media. I’m excited by the opportunity to work with these special brands and the talented teams that drive these assets.”

Chan is expected to start in the role midyear after completing his current commitments.

I would not be surprised to see other moves follow this appointment.

9 likes
magazines

Newsagents need to look at the growth of On The Run in South Australia when contemplating dual standards of Tatts Group

On The Run, owned by Peregrine Corporation, is a chain of convenience stores operating 24/7 across South Australia. The On The Run (OTR is how they refer to themselves) network is growing.

In an OTR store you will find all the usual convenience lines plus plenty more. The stores are modern, clean, well-laid out – best-practice convenience in my view.

Newspapers are accessible as is a good range of magazines. Where there is an OTR store, a high street newsagency is probably not needed for local destination newspaper and magazine purchases.  Given the South Australian newsagency model it does not surprise me OTR has flourished there.

Now, we see OTR challenging established retail newsagents. New outlets opening close to newsagencies and challenging the newsagency businesses for everyday lines like newspapers, magazines and lotteries.

The lotteries offer is what concerns me as OTR appears to be operating under different rules to newsagents, more commercially beneficial rules.

SA Lotteries is now owned by Tatts. What happens is South Australia is interesting as it is a common testing ground for many businesses. News Corp. for example, has tested new approaches and offers in South Australia for many years. Partworks are often test released in SA.

I wonder if the Tatts / OTR relationship is a test or trial of what we will see elsewhere Tatts operates.

I was in several OTR stores in South Australia yesterday to see first-hand whether they operated under different rules. What I saw suggests to me that OTR is treated differently to newsagents when it comes to:

  1. Counter space required.
  2. Shopper requirement.
  3. Non Tatts products in Tatts space.
  4. Posters required.
  5. Multiple use of the writing desk requirement.

I went to several outlets to ensure I was not in one ‘rogue’ operation. There was consistency in terms of space allocation, Non tatts products placed in locations that Tatts would breach newsagents for and considerably less visual nice than newsagents are required to spend money on promoting Tatts brands and products.

It is clear Tatts is happy with OTR and why would;t they be? OTR offers consistency that can come from a central managed business operation. Consistency appears to be important to Tatts than personal, local, service.

Here is what I saw when entering one OTR outlet:

IMG_8830

Here is a photo from approaching the counter inside the business:

IMG_8831 (1)

Comparing the space allocation to what Tatts has recently required of newsagents, the OTR space requirement appears to be around two thirds less. This significantly alters the cost basis of offering Tatts products. The closer proximity of other supplier product to the Tatts terminal helps OTR drive a deeper basket from tatts purchases, again enhancing the financial value of Tatts sales.

Is the OTR model a model Tatts would like to see nationally? While you can ask the question, I doubt anyone at Tatts would say. Their answer would be about the importance of newsagents to the company and that the requirements they have for newsagents are for the good of newsagents.

Any newsagent concerned about the direction of Tatts outside the newsagency channel should look a OTR and consider what could happen to their business is similar occurred in their area.

FYI, here is the pitch OTR make from their website:

Now you can play your favourite SA Lotteries games at a number of OTR stores, including Saturday X Lotto, Monday and Wednesday X Lotto, Oz Lotto, Powerball, Keno, Instant Scratchies, Super 66 and The Pools. Playing the lottery is easy while you’re On The Run!

10 likes
Lotteries

Caltex to increase focus on convenience retail

IMG_8780The Australian Financial Review Tuesday reported expansion plans by Caltex in the convenience space. Newsagents focussed on the convenience model may find this interesting.as the reported Caltex plans reflect a move into product categories we can see as successful already in c-store in the UK and US, especially fuel connected retailers.

Convenience retail continues to be a rapidly moving retail segment. The challenge for independent retailers is the strength and capacity of national and international competitors. The cost of keeping up for indie retailers is high and as we have seen in recent dealings by Tatts, some suppliers give national and international operators favourable treatment.

My suggestion to newsagents in the convenience space is to keep ahead of trends.

2 likes
Convenience retail

How unicorn season is attracting new shoppers to the newsagency

Six months newsXpress conceived the idea of a unicorn season, to commence right after Easter this year. A terrific mix of suppliers got on board to ensure a good mix of unicorn product catering to a broad age range. This was important as the research in Australia and overseas indicated a broad demographic being interested in all things unicorns.

The unicorn season was considered to be a good fit for newsXpress businesses as it touches on gifts, emotion, creativity and fun … all important elements in newsXpress businesses.

In addition to supplier offers, newsXpress provided all stores with a stock of A1 double sided posters plus digital material to use online.

Here is how unicorn season launched at my Knox store.

IMG_8729

And here is how the amazingly creative team at newsxpress Bairnsdale have launched it.

12931301_1105251979526959_1485095655490739157_n-2

newsXpress has launched an in-store colouring competition.

12885808_10156689456665142_441684082062049094_o

And it has launched a national unicorn horn making competition.

UnicornCompPoster

So, what does all this mean? While the promotion is only ten days old I know it is attracting ne shoppers into businesses, driving impulse purchases of unicorn product, generating terrific social media engagement and improving the bottom line of engaged businesses.

But most important of all, unicorn season is giving the engaged businesses something different to promote, something you are not seeing in any competition, something to remember the business by, something through which the business can identify away from the traditional.

This is fun too. I know much more about unicorns than I did six months ago, including where to buy unicorn snot.

If you think this post is an ad for newsXpress you would be mistaken. It is a post encouraging you to think outside the walls of your newsagency, to chase change, to have fun and to not be bound by what is usual for your business.

You can do anything. And you should because now more than ever tradition is not a good thing in a newsagency business.

It starts with this question: what am I doing in my business to day to attract new shoppers, people I do not usually see in my business, into my business? That is the most important mission of every retailer today.

15 likes
Newsagency management

Fixture supporting new Candy Crush title

IMG_8782I was interested to see the end of aisle fixture promoting the new Candy Crush title from Puzzler in the Newslink store in the Qantas terminal at Melbourne airport on Tuesday.

I like the unit and would have used it to place the title next to weekly magazines, just as they have done in the business shown in the photo.

I’d love to know if newsagents were offered this.

5 likes
magazines