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

Newsagency of the future: Navigating your newsagency from traditional to relevant starts on the shop floor

This very rough sketch from me depicts a typical local small business newsagency layout, a design often encouraged by The Lottery Corporation, newspaper publishers, and magazine, card, and stationery companies. The focus always was on providing ample space for each supplier, with little consideration for the needs of the business paying for the shopfit.

The result was a zoned business that was inflexible and primarily served the suppliers’ interests. Too many newsagents today continue to operate with similar layouts, despite their inherent inefficiencies.

The bold colours represent high-traffic product categories, such as lottery, magazines, and newspapers. However, analysis shows that customers in these categories rarely purchase other products. For example, around 80% of newspaper purchases do not include any other product based on the mst recent newsagency sales basket analysis.

The current traditional local small business newsagency shop layout actually discourages efficiency, particularly for lottery products, which often demand a prominent front-of-store location. This can hinder the sale of other products.

The red, blue, and yellow lines represent the typical customer journey through a traditional newsagency. These lines illustrate the inefficiencies and lost opportunities in such a layout.

The failure to adapt to changing times is a significant reason for the closure of many local small business newsagencies in Australia. It’s time for the industry to embrace change and move away from outdated business models.

In 2009, I proposed a flexible newsagency design that could be easily adapted to evolving needs. Unfortunately, many businesses have continued to cling to traditional layouts, leading to financial losses.

It’s crucial for newsagents to push back against suppliers who demand excessive space or prime locations. These demands should be based on sound commercial reasons, not simply the supplier’s desires.

By analysing foot traffic patterns and customer behaviour, newsagents can identify opportunities to improve their layouts and increase sales. It’s time to modernise and adapt to the changing needs of customers.

Here are five steps I recommend for creating a more commercially viable use of your space:

  1. Remove newspaper and magazine specific fixtures from the floor of the shop.
  2. Use everyday (low cost) and non product specific fixtures for newspapers and magazines on the back wall of the shop.
  3. In the freed up floor space introduce tables, desks or similar everyday found objects onto which you place gifts in a storytelling mode. Displays should have few of each item and they should be arranged to represent a story around a theme. Open up the space in such a way that people are drawn further into the shop.
  4. Remove all convenience lines from your counter and replace them with products people will purchase on impulse, products people don’t think of you as carrying and products for which you’d like to me known.
  5. Look at your stock. Urgently get rid of any product you gave not sold at all in the last six months. Dead stock kills businesses. It really does. If you have had a products on the shelves for not sold any of it for six months that is dead cash, dead space and a measurable opportunity cost for the business.

These 5 recommended steps are to get you started. The list for transforming your newsagency from traditional to relevant is long, much longer than 5 steps. Most of the steps will be unique to your business: the place from which you start, your desired destination, your location and your resources. Changes are needed daily.

Transforming a traditional newsagency can be done. There are plenty in the channel who will help. My details are: mark@newsxpress.com.au and 0418 321 338.

It doesn’t matter how traditional your local small business newsagency is, how big or small your shop is, whether you’re in the city or country or how little you have in resources. There are always steps to a brighter future you can take.

This blog post has enough advice anyone can act on without having to pay for anything. That’s a reason I started the blog and continue to write here – to provide a free resource for local small business newsagents in Australia they can consider and act on if they consider it appropriate for their business.

The advice I have provided is advice I have followed myself in businesses I have purchased that were traditional at the time of purchase. The 5 steps are basic, and they work.

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newsagency of the future

How newspapers used to be

I am in Vancouver and enjoying reading The Globe and Mail. This is a newspaper how I remember it – compared to what we now see in Australia.

The Globe and Mail features actual news on the front cover and inside. There is little or no clickbait. No ads cluttering the front page either. It’s a narrow paper physically, 30.48cm wide. I like this format, Berliner I think it is called.

From WAN-IFRA I can see that The Globe and Mail has 300,000 subscribers, of which 210,000 are digital-only and 95,000 are print subscribers. Elsewhere I found out that print circulation is reportedly 65,000 copies a day.

It’s readily available in shops and hotels.

Here in Canada newspapers appear less engaged in politics. They report it for sure. What’s missing is the lobbying and agitation we see often in Australian newspapers.

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Newspapers

AFL Grand Final Record promotes newsagents

At least newsagents are mentioned in their social media promotion of the title. It would be good if they pitched us ahead of the supermarket giants.

Then, there is this ignorant tweet abut “all good newsagents”.

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Ugh!

Here are 7 things suppliers need to do to drive purchases by retailers:

We have many suppliers to newsagents and other small business retailers who are living in the dark in terms of how they transact with retailers.

Here are 7 things I think suppliers need to do to drive purchases by retailers:

  1. Make ordering easy, paperless. Let retailers order online from an easy to navigate website, showing stock on hand for immediate delivery and expected delivery date for future deliveries.
  2. Email a copy of the order.
  3. Provide access to a library of product photos organised by product code and with an easy download option.
  4. Provide an electronic invoice when goods ship.
  5. Make handling queries easy, and fast.
  6. Offer access to all product pitches as soon as they are available – for access from anywhere. Having to wait for a rep to do a presentation in-store doesn’t respect retailer time.
  7. Offer access to anonymised comparative sales data so a retailer can compare their performance for a brand or product with similar sized and situated retailers.

There will be some suppliers who will say this is too complex. The thing is, investing in these steps will, I am sure, boost sales and improve retailer / supplier stickiness.

How we all do business has changed. It is a waste of time having to fill in a paper order form, scan this and email it to a supplier. It is a waste of time having to meet a rep to discuss something face to face that I could scan in minutes at a time of my choosing. It gets all the data in the right place at the right time if I can transact online.

I get the interest from suppliers in personal contact. This is where good sales reps make good money for the companies for which they work. The reps are not working for retailers.

Through Faire and several other online platforms plenty of us are having terrific sales experiences with new suppliers. Old-school suppliers are being left behind.

How we all do business has changed fundamentally. Keep up. Do better even.

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Newsagent suppliers

Year of the Snake opportunity for newsagents

Even though it is plenty of months away, products have already started flowing for the celebration of the Year of the Snake.

We have offered Chinese zodiac related products for years. This year, the Year of the Dragon, it has been worth thousands of dollars in revenue.

Several state governments are in on the opportunity, offering birth certificates tailored to the various zodiac characters. I mention this to show that interest is broad from the practical through to high end gifting, like coins valued at $5,000 and more.

Current search engine searches for Year of the Snake in Australia are at 12,000, making it an easy keyword to leverage. That will spike as the year draws closer. The Year of the Dragon searches, for example, peaked at 350,000 a month. Each search is an opportunity for retailers.

I’ve talked about this opportunity with several newsagents who said they did not have customers who would be interested. What I know for sure from online sales is that we don’t know what we don’t know. Chinese zodiac shoppers come in many forms across a broad age range and many social settings. And, people buy for different reasons: for their home, for friends and as an investment – this is certainly the case with high end coins.

I think local newsagencies offer and excellent opportunity for leveraging Chinese zodiac related products and gifts and while the Year of the Snake will not reach the peak interest we have seen in the Year of the Dragon, it is valuable. I think of the opportunity as a season. In my own case, that season passes easter and Father’s Day in commercial value to the business.

There are plenty of fringe seasonal opportunities like this with which we can engage to attract new shoppers to our businesses. It’s vital as new traffic is truly the lifeblood of our future in retail. If you are not attracting new shoppers you are not nurturing the value of your business given declines in core product categories.

If you are not sure about Chinese zodiac products, do some research. There is plenty of evidence of excellent product availability and ways you can promote these in the context of your newsagency business today.

 

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Newsagency opportunities

Do newsagents see their future as a community hub?

Here’s a short video from me exploring this quote from Helen Dowling, CEO of Newspower, in an article published at www.realcommercial.com.au.

Newsagents are the hub of a community. And that’s a great word to keep in mind – community. For a lot of small towns, the newsagency is a one stop shop, so it’s all about what they can offer their community that’s not there already.

I disagree with Helen, as I explain here:

The purpose of every newsagency business is different. The notion of us all being the same and having the same focus is old-school. Years ago, when newsagents were primarily agents, being a hub in the community made sense. Following deregulation and the dilution of the value of being an agent, the commercial value of being a community hub, too, diluted.

What is the future of the local Aussie newsagency? It’s bright for those who look beyond tradition and embrace change.

Thinking of yourself as a community hub feels to me too limiting, out of date and not commercially focussed.

I am glad this quote from me made it into the article:

There are newsagents in regional Australia making up to $500,000 a year selling gifts and homewares. They still do the legacy stuff, but their real interest as retailers is in non-newsagency items. That’s where the future lies.

As I cover in the video I shot this morning, our channel is different to the past. People need to realise that, including plenty who serve within the newsagency channel. Look ahead people.

…

I own and run newsXpress, a marketing group that competes with Newspower. Like everything I post here, this post reflects my opinion.

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newsagency of the future

Thank you Real Commercial are a more balanced reporting on the state of the local Aussie newsagency

I am grateful to Henry Johnstone of Real Commercial for their questions about the state of the Aussie newsagency reflected in a broad article published recently: ‘Move with the times’: How the humble newsagengy became a retail destination.

Newsagency evolution  

It’s no secret that the newsagency of 2024 looks nothing like it did 20 years ago. 

With over-the-counter newspaper sales declining at a rate of 11% year on year, many traditional newsagents have evolved into convenience-based businesses, which has afforded owners the opportunity to embrace a wider choice of revenue streams. 

A 2024 IBISWorld report revealed that of the industry’s $2.2 billion in annual revenue, 21.5% of sales can be attributed to books, 20.5% to newspapers and magazines, 16.9% to stationery, cards and gifts, and 12.9% to lotteries.  

According to the intelligence organisation’s data, the remaining 28.2% of sales are listed as ‘other goods and services.’ 

Mark Fletcher, CEO of Tower Systems – a company that supplies software to specialty local retailers – said newsagents have the potential to thrive in the digital age by not seeing themselves solely as newsagents. 

“I know of businesses that have opened cafes, while others have gone into garden centre products. I know of a newsagency in Victoria that created a baby shop within their business and are now going gangbusters in that space.”  

“By all means sell papers and magazines, sell lottery tickets, but don’t let those things define you,” Mr Fletcher explained.  

“There are newsagents in regional Australia making up to $500,000 a year selling gifts and homewares. They still do the legacy stuff, but their real interest as retailers is in non-newsagency items. That’s where the future lies.” 

…

Last month, ABC News published a story on the Mansfield Newsagency in regional Victoria and its failed attempts to find a buyer.  

“Unfortunately, it’s an industry nobody wants to take on anymore,” owner Frank Livingstone told the ABC, blaming the decline of his business on the demand for online news outstripping print media. 

It’s something Mark Fletcher vehemently disagrees with.  

“You can’t blame the decline in print for newsagencies closing,” Fletcher posted on his blog after the article was published. “A business closing because of this is a business rooted in the past. Smart newsagents started transforming their businesses 20 years ago.” 

While the official number of newsagency retailers is difficult to pin down, IBISWorld currently quotes a figure of 1,784, while software supplier Tower Systems believes the number is somewhere closer to 2,800.  

It’s good to see a better balanced view on this than copvered recently by the ABC and some others.

Here’s what the Newspower CEO said:

“Newsagents are the hub of a community. And that’s a great word to keep in mind – community. For a lot of small towns, the newsagency is a one stop shop, so it’s all about what they can offer their community that’s not there already.”

I think Helen is wrong. Every newsagency in Australia is a commercial business and ought be run as one. Profitability has to be the priority ahead of any community service as it is only profitability that will give the business a future and the owners what they need / want from their business.

I think Helen’s quote shows where Newspaper is at today. It reminds me of the Jethro Tull song, Living In The Past.

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Newsagency management

Advice on how to get your business website to rank higher in search engine results

Here are 6 things to do to rank higher with Google and other search engines:

  1. Include brand in product names as that’s what people tend to search for.
  2. Arrange products by brand, with the brand name in the collection URL.
  3. Use blog posts to promote brands and branded products. Write these yourself. Try and not use AI generated content – search engines preference human created content.
  4. Use keywords relevant to your business in the content on your website, keywords people are searching for.
  5. Ask your suppliers to link to your website.
  6. Optimise meta title and meta descriptions to accurately describe content.

Here’s how you can optimise meta titles and descriptions in Shopify:

  1. Go to the product you want to edit in your Shopify admin.
  2. Click “Edit” to open the product editor.
  3. Scroll down to the “SEO” section.
  4. Replace the default title with a concise and informative title that includes your target keyword.
  5. Write a compelling description that accurately summarises your product.
  6. Click the “Save” button to apply your updates.

Additional tips:

  1. Incorporate target keywords naturally into your meta title and description.
  2. Aim for a meta title around 50-60 characters and a meta description of 150-160 characters.
  3. Use strong action verbs and a clear call to action.

Each week add new blog posts. Each post should be about a single product or a single brand. Talk about what you love about it. Be personal. Use a friendly and engaging tone. Write more than 350 words, ideally above 500 words. Refer back to your physical shop in the post. Use the product name or keyword or phrase you are targeting at least five times in the post – use it naturally though.

If you are not sure what keywords to target, ask someone. I provide this advice, based on data evidence, free to Tower and newsXpress customers. The data I source is through a platform I pay US$300 a month to access. It’s up to date for Australian keyword searches.

Keyword targeting in your content is key to the content driving your website higher in search engine results.

Yes, this is all hard work. Do it if you want to rank higher. A website is a forever hungry beast.

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Management tip

Newsagents discuss the future

Over the last three days in Melbourne newsXpress members met in Melbourne to discuss the future, explore opportunities and connect face to face.

There were insightful and inspiring supplier presentations, taking us behind the scenes with invaluable data insights, and there were plenty of attendee driven discussions about business, and especially new customer traffic opportunities.

With hotel accommodation, meals and drinks covered by newsXpress thanks to wonderful supplier support, the cost of participation was minimal for newsagents from Western Australia, Queensland, New South Wales, the ACT, Tasmania, South Australia and Victoria.

We discussed the economy, our channel, current retail sales data nationally and for the channel, what’s working, what’s not, opportunities for the rest of 2024 and into 2025 as well as entirely new product category opportunities.

Tuesday rounded out the conference with round table discussion on: getting online (how to, cost, tips, opportunities); your exit strategy – how to plan for a good exit for you, your family and your business; and, chasing margin dollars – how to avoid too many newsagents make in chasing the wrong thing when negotiating.

Over the course of the two days, plenty of meals, drinks events, morning and afternoon team breaks and the conference sessions themselves, everyone was engaged and involved, working on their businesses, taking the opportunity of being outside of the business to do this and plan for what’s next.

It was a relaxed conference, not too formal, with plenty of laughs along the way.

Alongside the conference was a terrific trade show with products from twenty different suppliers. Suppliers were thrilled with the results, which new accounts and business written. This business happened naturally, without pressure.

But let’s get back to exit strategy. Each speaker spoke to this topic, with their own stories and newsXpress added context for lcoal retailers in terms of the day to day decisions that can provide useful opportunities when one does decide it is time to exit the business.

There aren’t many national conferences for newsagents any more. For 30 or 40 at this newsXpress conference it was their first with the group. The feedback was terrific, people found attending invaluable personally and they look forward yto implementing initiatives to make it valuable for the business.

If your business is in a group, go to their national conference, engage, ask questions, network. Those few days out of the business thinking about the business and working on it can be invaluable as this week has proven for plenty at the newsXpress conference.

The future looks good.

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newsagency of the future

Looking back at my newsagency in 1996

This photograph captures the second location of my first newsagency in Forest Hill, Victoria. I acquired the business in February 1996 after the previous owner went broke. We moved because the landlord required us to relocate a few months after buying the business. This new location reflects the focus at the time on the newsagency shingle and using newspapers to attract shoppers.

The shop’s retail floor space was traditionally divided into thirds: one for papers and magazines, one for stationery, and one for cards.

We operated from this location for three years before being relocated to a new site in 1999, where we added Tatts lottery to the business.

In 2006, we sold the home delivery run—for the same price I had originally paid for the entire business—and six years later, we sold the entire business.

In the twenty-eight years since I bought my first newsagency things have changed considerably. I think, right now, the pace of change is faster that ever. I also think any are not noticing the changes.

I don’t recognise the business in the photo. It is so out of date in terms of what I consider a newsagency to be today.

None of my shops today have lotteries. Cards are allocated 20% of the floor space, magazines under 10% with the rest being taken by gifts, homewares, collectibles, books and other good margin products.

It’s valuable to look back and reflect on the journey from this perspective.

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newsagency of the future

Early Christmas sales thanks to coin releases

Two significant coin releases yesterday from the Royal Australian Mint provided a terrific traffic boost for newsagents with stock. Both the silver proof and decorative Festive Florals coins sold quickly, and well.

What’s beneficial about coin shoppers is that they typically purchase other items during the visit – around 70% of the time they do from our data. This makes coins an efficient product for us to stock.

This second coin, the silver proof, is another example of price not being a barrier. It sold out first with little concern opver the 4135.00 price tag.

Key to leveraging the customer visit is related products that will appeal to this shopper, that the shopper can include a coin collector, a Christmas seasonal buyer, a general collector or anyone buying for any of these. Irt takes a it to understand the various shopper personas. Once you do understand, you can make good coin. (Sorry about that!).

Five years ago newsagents (except for Post Offices) would not have had access to mint coins. Now, four mints supply products to the channel, delivering millions of dollars in revenue and more than this in terms of value of new shopper traffic.

Coins are a valuable opportunity and that value will grow into 2025 and beyond.

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newsagency marketing

Leveraging the Bluey frenzy in the newsagency

The release of the Bluey coin products through Australia Post has provided an excellent opportunity to pitch all things Bluey in the newsagency from the magazine to the toys to the plush to the latest release of Bluey licenced cards from Henderson Greetings.

We have had the Bluey cards since they were first released a few years ago. They have been a hit commercially and creatively. It’s good to see the licence renewed for Henderson as they have served it well with their Aussie made products.

While the magazine, toys and plush are cool, it’s the cards that have the broader appeal given those shopping for cards. We have found counter placement to be terrific for boosting impulse purchases. It’s an easy win.

Bluey is an easy win. Currently, there are 1.4 million Bluey related searches in Australia. If you have an online shop with Bluey products available, leveraging searches for the keyword ought be a priority. You can do this through thoughtful product names and descriptions as well as supporting blog posts. This type of marketing costs in time only. It is easy to engage with.

I’d note that leveraging the Bluey keyword is challenging because so many others are trying this too. You have to be smart and you have to have a range of content. One blog post, for example, is not enough. Publish several on different Bluey topics. Have as much product as possible too. This raises your profile with the search engines.

If you are not an Australia Post LPO and have not had access to the coins, there are other Bluey products you can access to make the most of this mega-licence. My advice to newsagents is to embrace the Bluey opportunity, even if you think you do not currently serve that customer. This is a licence that surprises with its broad appeal.

If you do have the Bluey cards, toys, plush and magazine, my advice today is to place it all together, in the window or somewhere else people will see it. Ride the coattails of the coin release for an easy sales boost.

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Greeting Cards

Father’s Day is over, what’s next in the newsagency?

Engaged retailers have their plans in motion for port Father’s Day activity on the shop floor. For some it will be a move into Halloween, for others it will be a Spring launch of new products, for some it may be a move into graduation and / or wedding season, while for others it will be clearance ahead of Christmas.

It’s important that there is a shop floor reset from today, a major reset, the kind of reset shoppers notice and comment on, something that gets people talking to others about.

Today is not too late to consider and act on a post Father’s Day reset.

Taking down Father’s Day and not making a change into something fresh is a mistake in my opinion. Certainly, newsagents years ago would do that, do nothing after Father’s Day for a while. Our in-store actions back then were guided by suppliers. The needs of suppliers don’t match the in store calendar needs of newsagents, or any retailers.

Focussing on a Spring launch would need you to have bought stock months ago to be ready for this. The same is true with Halloween. Graduation and Wedding are easier to lean into as there is plenty of product available and you could have it in-store within a few days.

If you have not planned for post-Father’s Day and want some tips for what you could pull together easily, here are my suggestions relying on products you are likely to have in0store right now:

  • Kids activities. This pitches stationery and toys. It appeals to a good cross section.
  • A post-Winter sale. It’s a good opportunity to quit what’s not working.
  • Graduation. People will buy early. You need to guide them through with product opportunities right in front of them.
  • Colour block. This is easy. Bring together in a font of store display everything you have that features the colour you choose. My advice is do this for a week and then change colour, and repeat this change for a month. It takes care of in-0store promotions for 4 weeks and that gives you time to plan. Here are some photos from one of my shops.

Colour blocking displays like these can be put together in an hour. They use existing stock. Customers always comment positively, and they find things they never knew you stocked. This is why a colour block display is my go-to if I am not sure what to do next. They are also differentiating since most retailers will not do a cross product category display like this. here in suburban Melbourne, these colour block displays work for us.

Back to post Father’s Day though – do something. Make a statement,. Get shoppers in-store noticing.

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Newsagency management

Australian made cards have an advantage in the card department

It makes sense when you think about it. Unemployment is up, more people are either out of work or not getting the hours they want. These people and those close to them are more likely to preference Australian made is they have a choice.

Buying Australian made is a choice plenty of Aussies lean into. This is more true I think in economic conditions in which we find ourselves at the moment.

In the greeting card space it is easy for us to pitch Australian made in newsagencies. All we have to do is to turn the card over and point to printed in Australia, which you will see on cards from several Australian card companies. That these businesses are also Australian owned is a bonus. That their cards perform well, driving good year on year results, extends the bonus.

If you stock Australian made cards, pitch that on social media and in-store. Be grateful and proud to support Australian made. This is a good shop local pitch without sprouting the cliche chop local lines. A photo is a good social media pitch, each too.

When people talk about unemployment or the economy we can join in the conversation, or we can show through our actions that we are doing what we can to support Australian jobs and the Australian economy. Greeting cards are an excellent place in our businesses for doing this.

I think it is better for us to show through our actions and for me the easiest and best step we can take is to preference Australian made products. It’s an easy step we can take, too, with a guaranteed win based on the data I see from hundreds of newsagencies.

If you have Australian made cards, be sure your staff know how to pitch Australian made, talk about it on social media, talk about your commitment to Australian made in the context of helping address unemployment, show them at the counter, use shelf-talkers in-store and be proud.

card companies with non Australian made cards may pitch deals to buy your business. While it’s up to you, I am of the firm view that Australian made is a big selling benefit here right now, and we have hundreds and hundreds of wonderful Australian made cards we can stock.

The local Aussie newsagency should, in my view, be the best place in town pitching Australian made.

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Greeting Cards

Helping to circulate the NAIDOC 50 cent piece

We along with plenty of newsXpress shops are grateful to be able to exclusively offer the 50c NAIDOC coin in change we give to customers from tomorrow. While there will be many visiting to buy the coin due to its rarity in circulation, it’s available for change only. By giving it only as change customers who purchase something, we help the celebratory coin reach more people.

It’s been wonderful working with the Royal Australian Mint on this project, moving sought-after this circulating currency around the country to shops so that Aussies can access the coin. It’s not been like moving regular product. There is the value consideration as well as weight.

The design symbolises the care, strength and rich culture of our many Indigenous communities. The strong ‘50’ at the centre of the coin highlights the strong history of the National NAIDOC Committee, while the gathering of the 10 individuals in blue at the bottom of the coin represents the coming together of the committee in collaboration.

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newsagency marketing

Advice for retailers and their suppliers about the challenging economy

You’d have to be living under a rock to not be aware of challenging economic conditions being reported on daily. We are seeing the daily reporting play out in retail with people being more careful on what they spend. The number of people emailing and dropping in resumes to retailers has spiked over the last month. We receive resumes here at the office daily, way more than in years.

It’s a challenging economy. FYI, here is some of our advice I have shared with retailers:

  • The current economic conditions are not normal. You cannot trade as if they are normal. 
  • Where possible, pitch Australian made. This lands well everyday, and especially in times of higher unemployment.
  • Show value through a loyalty offer with cash off the next purchase. Cash is better understood than points, and big business competitors can’t compete.
  • Stock what you know sells for you. Typically, your top 25 sellers are out of stock 20% of the time.
  • Make the in-store experience happy and welcoming.
  • Quit dead stock. If it’s not sold in 6 months, why is it on your shelves?
  • Expand the appeal of your business with products you’ve never stocked before and pitch them outside your business.
  • Reset the front 3 metres of your shop weekly. Give the shop a fresh feel.
  • Ensure every hour of labour cost on your roster delivers value.
  • Ask a supplier pitching a new product these questions:
    • Who is the customer?
    • How can I reach them?
    • How valuable are they to me over a year?
    • How many Google searches are there in Australia every month for this product?
    • When they search, what is the search text?

I mention this because suppliers, too, need to adjust their businesses to reflect the economic conditions.

On top of what you read and feel about the economy, retailers have just had to absorb a 3.75% wage increase and a .5% superannuation contribution increase. Add to this a minimum 5% annual increase in rent and a 33% increase in insurance and you can get a sense of the stress some will be under.

Suppliers can help by:

  • Ensuring stockists are listed on your website.
  • Linking to stockist websites from your website. Backlinks this are valuable.
  • Promoting your stockists regularly on social media.
  • Ensuring every contact has commercial value to the retailer.

Anything suppliers can do to help newsagents and other retailers make their businesses more valuable is appreciated.

The alternative to the action for retailers and suppliers noted here is to do nothing, to treat things as business as usual. That’s not a smart move in my opinion. Whether our businesses are experiencing challenges or not, there is enough noise out there to indicate action is needed.

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Newsagency management

Where can I find a newsagent near me?

Where can I find a newsagent near me? It is the most common search online with the term newsagent in the search. There are around 20,000 such searches a month in Australia. Once we add similar and related searches, the number hits 40,000 a month.

Smart newsagents come up first in the search results, showing on a map. Check if you come up in the results. If not, you need to fix that by following well published, like this, Helping newsagents find local shoppers using the free Google Business Profile, that I published here and via ALNA.

The thing is, though, this search Where can I find a newsagent near me?  is not the biggest search relating to our channel and what we sell. People don’t search for a retail shingle, they search for an outcome, a product, brand or category. Someone looking for a birthday card is many times more likely to search for birthday card than for a newsagent. Don’t take my word for it – the evidence is in current search data for Australian online searches.

It’s one reason you need the be thoughtful in what you call your products if they will ultimately me sold online. I saw a newsagent recently call a Jellycat Bashful plush toy and pink plush toy. People will for search online for a pink plush toy, they will search for a Jellycat plush toy with Jellycat being the most important word in the product description.

By all means try and index well for newsagent. My advice, for what it’s worth, is to invest time in indexing well for brands and product categories as that is where the real traffic is. This focus will also help as you transition from legacy newsagency products into better margin and traffic generating products for which our channel is not known.

If you have a website connected to your newsagency and you want to catch some easy traffic, write a blog post with the headline of Where can I find a newsagent near me? and write about your business, what you offer and why visiting your shop could be satisfying if you are asking Where can I find a newsagent near me?.

I trust you can see what I have done here. yes, I have done exactly what I suggest you do. Use the headline based on this most common of questions and answer it in in the context of your website. Search engines and AI LLMs will ultimately learn from this.

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Newsagency management

The shrinking value of newspapers in retail newsagencies

Nine Media has announced to newsagents price increases for its newspapers effective from August 26. At 10% (or less) gross profit per title, we need to wonder about the value of stocking these products. They are loss making in all but the newsagencies doing the biggest sales. We have to sell 10 copies of a paper to cover the cost of one being stolen and, yes, newspaper theft in newsagencies is a problem.

Years ago we would make 25% of the cover price. Today, as this table shows, we are at 10% or less.

In today’s cashless world, the cost is more with EFTPOS fees ranging from 1% to 1.5% of purchase price.

With 80% and more newspaper purchases for a newspaper alone, the basket value of the category is not there for us. And to publisher reps who may say that’s it’s on newsagents to leverage newspaper traffic, studies have shown that getting destination newspaper shoppers to purchase something else in the visit is next to impossible.

Just as newspaper publishers are managing their businesses for the ultimate exit from the print medium, so much newsagents. Smart newsagents have been working toward this inevitable day for many years.

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Newspapers

Online lottery sales growth for The Lottery Corporation

The Lottery Corporation (TLC) published their full year results this morning in which they reported that for the full year, 40.9% of lottery revenue came from online, for which they note: Nearly half of the growth in digital share came from digital sales on which commissions are retained.

On the $200M Powerball jackpot, they note on page 16: Turnover of $320m; equivalent of 1 in 2 Australian adults purchased an entry; digital sales 47%.

On page 16 of their deck they note: Elevated personalised marketing through digital channels.

Digital features in their plans:

At least one analyst has noted today that in the second half of the financial year, digital sales hit 42% of revenue.

What all of this means for lottery retailers is: focus on attracting shoppers to your business for products beyond lotteries while serving lottery customers the best you can.

Lottery shoppers are migrating to digital purchase. I think in-store purchase will decline except for big jackpots. Act now to make your business attractive for non lottery purchases so that the migration does not negatively impact the value you derive from your business today and when you choose to exit. Lobby to limit capital investment in representing TLC in your business and push to open the currently quarantined TLC required space so you can pitch other products, like some of your competitors are allowed today.

Also, if I had lotteries in my businesses, I would be actively pitching syndicates through TheLott app to capture business outside of my shop. What TLC has enabled here in the last year in this space is terrific for retailers I think.

Click here to access all the ASX announcements from TLC.

Now, if you are still with me and reading this, thank you by the way, here is what TLC should do to better connect with and support the retailers who do currently account for the majority of their business:

  1. Open the TLC dedicated space and allow retailers to reasonably place other products to maximise the lottery shopper visit.
  2. Work with retailers on seasonal collab opportunities.
  3. Make it easier for people using the TLC website or app to find nearby retailers.
  4. Pull back on some breach criteria as the stress caused for local small business retailers does hot match some infringements.

I don’t think any of these moves would harm or damage business prospects for TLC. In fact, I suspect they would improve thanks to retailer happiness.

On the issue of suppliers to retailers also selling direct to consumers, this is a road suppliers need to navigate thoughtfully and with respect to the retailers they supply. TLC makes it clear in the presentation that selling direct is more profitable for them. As a public company, driving shareholder value is their top obligation. However, lumbering retailers with obligations that hold back the retailers is, in my opinion, unfair, socially irresponsible. TLC needs to address this.

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Lotteries

The newsagency of the future

I asked an AI  platform what the future of newsagents is? While the decline of print media has posed significant challenges, many newsagents have adapted and diversified their offerings to remain competitive.

Here’s a 22 minute video shot this morning in which I discuss this:

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newsagency of the future

Are you visible in your social media posts?

Social media continues to be a terrific tool attracting new shoppers to any retail business. The key is to be fully engaged with the opportunity.

You have to be visible. And, by you, I mean you as the owner or at the very least the personality of the business.

Too many newsagency businesses today have junk on their Facebook pages, bland posts, often done by others, filling space with boring content people scroll by quickly. This is wasted effort. These pages are likely seeing minimal engagement.

Here’s my advice for a more successful social media presence.

  • Write your own posts.
  • Reflect you in your posts.
  • Entertain. People come to social media to be entertained.
  • Educate. Become known for useful content.
  • Be grateful: for unique products and your customers.
  • Support the community – promote local groups.
  • Be authentic.
  • Be unique. Reflect how your business is different.

On this last point, while lottery businesses and magazine publishers like to see you pitching their products, posting about them does not differentiate your business. Those posts, I think are a reason to scroll by anything from you.

I know of local retail businesses that have 30,000+ followers on social media thanks engagement with content like that listed above.

A good starting point is to treat each post as if it’s the first contact someone will have with your business.

Take a look at your social media presence and assess whether it is how you want your business reflected. If it’s not, pivoting to posts that are more meaningful and engaging is easy.

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newsagency marketing

Free Zoom: Newsagency of the Future, August 20, 2024 @ 11am

Tuesday, August 20, at 11am Melbourne time I will be recording a Newsagency of the Future session and you’re welcome to join. Here’s the link:

https://us06web.zoom.us/j/82144330062?pwd=bbPWUavaMzXs0zRdlxkzy1OPQpENM8.1 Meeting ID: 821 4433 0062 Passcode: 149433

Pre Covid I used to host Newsagency of the Future workshops around the country, meeting hundreds of newsagents, looking at trends impacting our channel and speculating on what our future could look like.

This session next Tuesday will look at where newsagencies are at today, consider trends in the world that impact retail broadly and our channel specifically and contemplate what a Newsagency of the Future could look like. I’ll offer actionable practical steps for today.

This is a free session. Anyone is welcome to join live. I will share the video.

My goal for hosting this session as it has been for similar sessions I have hosted for many years is to offer newsagents ways they can enhance the relevance of their businesses, the enjoyment they derive from their businesses and the value their businesses bring them and those who rely on the business for economic sustenance. 

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newsagency of the future
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