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

Appalling editorial decision by the Sydney Morning Herald in seeking to out Rebel Wilson

So, it was an abundance of caution and respect that this media outlet emailed Rebel Wilson’s representatives on Thursday morning, giving her two days to comment on her new relationship with another woman, LA leisure wear designer Ramona Agruma, before publishing a single word.

Big mistake. Wilson opted to gazump the story, posting about her new “Disney Princess” on Instagram early Friday morning, the same platform she had previously used to brag about her handsome ex-boyfriend, wealthy American beer baron Jacob Busch.

This ‘story‘ in The Sydney Morning Herald reflects, in my opinion, poorly on the editorial decisions of the newspaper.

They are upset that Rebel Wilson decided to come out, ahead of their story. While we will never know if Rebel would have made the announcement as and when she did, what we do know is that the enquiry from the SMH and their advice they would run the story preceded it.

In the SMH story they try and justify their behaviour.

Considering how bitterly Wilson had complained about poor journalism standards when she successfully sued Woman’s Day for defamation, her choice to ignore our discreet, genuine and honest queries was, in our view, underwhelming.

This, in a story that reflects poor journalism, poor editorial decisions and reads like bullying.

No news outlet, no person has the right to out anyone. It is no one else’s business until the person or people directly involved decide. When it is done it is hurtful, harmful and, too often, dangerous.

There is no newsworthiness in Rebel Wilson’s personal life, unless your business model is predicated on making money off of gossip.

The story in the SMH makes them the story, their editorial choices and how they treat gay people, threaten them, bully them. That’s how I see it. And, yes, I have a vested interest in that it happened to me years ago, not in the SMH or any newspaper, but my agency was taken from me by gossips and others.

How the SMH has handled the story could impact others in the closet, famous or not as it shows anyone that outing someone is okay and that pressuring them about their sexuality is okay. It is not okay to out someone and it is not okay to pressure someone to come out.

The SMH has diminished itself through its behaviour on this. The masthead owes an apology to Rebel Wilson.

Why does this matter here? We sell this stuff and some days I hate that I do.

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Ethics

Not all shopping centres are recovering from Covid the same

While high street shopping appears to be strong and better than pre-Covid, for at least most of the stores I have seen data for, in shopping centres it is a different story.

Retailers in some centres are doing well while some in other centres are down significantly on 2019 trade.

I’d like to see state and federal governments work together to capture accurate data to assess the situation, to help us understand how shopping centres, overall, are performing in 2022 compared to pre-Covid and, then, how each centre is performing. 

I suspect an independent study would reveal significant differences in the performance of each centre. I am sure we would see some centres have bounced back while others have not. It is in that second group, where tenants are dealing with annual rental increases of 5% and more where we may find significant financial pressure, brought on by Covid.

Any study should only be about understanding the situation, and not about laying blame. If one centre is performing poorly while another is performing well, it does not mean the poorly performing centre is being run poorly. There are many factors that could be driving the different results. We can’t consider that until we have the data. That’s why a government-led study would be useful.

While landlords have sales data, their interests are too vested, too narrow, for that to be of value nationally. An independent assessment of the situation would be helpful, especially for the independent retailers in these centres.

In one situation I was looking at this week, revenue is stubbornly sitting at 20% less than in 2019 for a vibrant and appealing business that is engaged on social media and undertaking other marketing to attract shoppers. Their business is in a category that is strong out on the high street.

In another situation, revenue is down 15% which nearby retailers in the same category are up 20% … and the nearby retailers are doing less marketing and offer a less appealing (in any opinion) experience than in the shopping centre.

But this post is not about specific retailers. Rather, it is a call for a national assessment of retail performance in shopping centres so that we can understand if there is a problem, and if so, the centres in which the problem is amplified. Again, landlords are unlikely to drive this. That’s why I hope governments engage.

With most of the Covid support now gone, small business retailers have few options. Those in shopping centres that are yet to be back at pre-Covid trading levels are facing operating costs that, for some, will be unsustainable. No one wins from that – the landlord, governments, the community, the owners. The sooner we have data to understand if there is an issue and the scope of it the better.

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Newsagency management

With Covid impacting staffing and other aspects of retail

Here’s our approach to mitigating to Covid challenge in our shops:

  • Screens at the counter. We have retained these as they offer protection for us and customers. There is zero customer push-back.
  • Masks. We urge team members to wear masks when working.
  • Sanitiser. Remains freely available in-store.
  • Cleaning. Remains at peak Covid levels. All common touchpoint are cleaned on a regular cycle.
  • Vaccination. All team members are asked to get vaccination boosters as soon as they are eligible.

This pandemic has a ways to go yet. The reported infection rate is high, meaning the real rate is much higher. Worse, the death rate is tragic.

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Social responsibility

Advice for suppliers pitching to local small business retailers

Do you have any idea how many pitches a retailer gets from suppliers every day?

Many, too many, every day. And, what makes it worse is that there is a sameness to the pitches – over written, loaded with claims and rarely tuned to my local business needs. Most emails or calls or visits come from a place of selfishness, based on what they need. A better approach would be them thinking first how can they help, how can they add value to your business without you having to commit?

There is too much lazy communication. And, I say this as a retailer and a supplier to retailers. I have made the mistake of sending emails and letters that were selfish. When I switched my approach to add value, or at least try and genuinely add value, sales surged. It built trust. Giving away knowledge that any retailer could use without having to spend anything is key to this.

So, what matters to retailers, what does a supplier need to do to get their attention?

In my opinion – I say that deliberately since every retailer will have their own views on this – here is how a supplier can get my attention:

  • Be clear and efficient in communication. Don’t over write, don’t wrap your pitch in fluff.
  • Be factual. Give me data, which can be fact-checked, that shows the value of the pitch to my business. For example, what Google search data is there to indicate shopper interest in the products or the product categories?
  • Be helpful. Explain what you provide beyond inventory that could be helpful: images, social media collateral, product descriptions, electronic invoices.
  • Be focussed. Sending me a link to your catalogue is hilarious. Sure, I have an hour to click your link, probably apply for a password if you are really bad at your job, and trawl through pagers looking for what I am not sure. The fewer keystrokes I have to click to engage with you the better.
  • Have stock. Suppliers selling in advance of having stock only to find not everything arrives is a waste of our time.

I am in business to sell product as this is what enables me to pay rent, wages, overheads and myself. Anything that you send my or pitch to me that does not obviously support my needs is a waste of my time.

Thinking about this, sell price, margin and stock turn are all factors. I am keen for products that leverage all three. A supplier pitching a product at a discount has me wary, regardless of the extent of the discount. Cheap product is useless unless it sells, and, ideally, faster than usual.

For too long, our channel has been pitched to through old-school approaches. Covid, thankfully, has shown that we can thrive without some of these. The future is ahead of us, not back in those past ways. Smart suppliers have learned through Covid, they have found ways to pitch efficiently and effectively, to cut through and deliver to retailers what retailers want / need. Fewer rep visits. fewer cold calls. Fewer bland emails.

When I am buying today I preference:

  • Genuinely Australian made.
  • Immediately available.
  • Free samples for products that sell more easily if there are samples for customers.
  • Ranges that tell a story.
  • Ranges I can leverage to find new shoppers.

Here are some other points related to this discussion about supplier engagement with local retailers …

You are not entitled.

I appreciate that may came off as offensive. That’s not my intent. But, it is true. We owe you nothing, regardless of your connection to our business. Any supplier is only as valuable as their last product supply.

No thanks.

That’s the best default response to every supplier pitch. Start with no. make them work for it. make them work harder to get their inventory into your shop.

Start with no and encourage them to make a business case.

You don’t have an appointment.

That alone should have you showing any drop-in the door. The moment you agree to meet with a drop-in rep weakens your position. The more we make the point that drop-ins are not welcome the better they will treat us.

A coffee, a beer or lunch are irrelevant to what you should stock.

There are plenty of old-school suppliers who think buying you a coffee or a beer or more is the best way to get you to bu from them.  I’m in business for business reasons, not social reasons. Let’s stay focussed on business, and is good social times flow, great – but let’s not lead with that.

Buying space.

Some suppliers seek to guarantee engagement by paying for shelf space or fixtures. Too often, this does not serve the retailer well. While a supplier funding a nice looking fixture or covering the lease cost of some space may feel like a good move for cash flow, it is only a good move if the inventory they please there turns well, better than what you could do yourself. This type of funding comes at a cost to the business.

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Ethics

Playing outside tradition helps drive new traffic

I am grateful for the opportunity to visit the Avant Cycle Cafe in Lake Geneva, Wisconsin, a few weeks ago. How this bike shop has curated shopper traffic appeal beyond what is traditional for that channel is an opportunity for any local retailer to consider.

Lake Geneva is a small town with a. population of abound 8,000, which swells in the summer. What they have done at Avant to broaden appeal is smart. I’ve seen newsagency businesses in Australia do similar. Join me on a closer look at this business.

What I particularly like is that each business, the cafe and cycle shop, is separate, but they link, cohesively. I also like that each part of the business is rooted in passion, and that stands out, it also is key to driving traffic.

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Newsagency opportunities

News Corp. updates VIC newsagents on product printing and distribution

News Corp. sent this to newsagents Friday last week. It doesn’t address the fact that the old newspaper home delivery arrangements better served local communities than the current arrangements, even though the old arrangements underpaid newsagents for the work they did.

3 June 2022

Update on printing & distribution of newspapers in Greater Melbourne & Geelong

Dear Newsagent/Retailer,

As you would be aware, we have recently moved printing of our newspapers to a new production facility in Truganina. We also commenced the transition to a new consolidated distribution model.

We acknowledge this has caused challenges and whilst we are making progress, our team is working hard to further improve and ensure that we provide you with a consistent and timely service. We do appreciate your continued understanding and support with this.

PRINTING:
Background
In 2020, News committed a significant investment to construct a new facility in Truganina that included modern equipment needed to enable production long into the future.

This investment helped to deliver an improved product for readers, such as full colour availability throughout the paper. It also increased our capability to provide more supplements into our papers, such as the recently launched VWeekend in Saturday’s Herald Sun.

Amongst the normal challenges of a new facility, the project was managed over the peak of CoVID and lockdowns.

Status
Production performance and equipment reliability has been slowly improving, as have dispatch times. We recognise that further improvement is required to ensure we consistently meet our targets.

What’s Next
To further improve dispatch times, we have a number of initiatives underway such as:

Earlier editorial deadlines on some products
Installing a second inline automated wrapper for home delivery copies
Increased on-site offline wrapping capability for home delivery copies

DISTRIBUTION:
Background
In late 2021, we commenced transitioning our distribution model towards a consolidated distributor. The transition plan is spread over 15 months. It is a process that has previously been undertaken successfully in Sydney and Brisbane, providing a more sustainable model to get papers to our valued retailers and subscribers.

Status
Our consolidated distributor, NDS is currently delivering about half of all newspaper copies printed in Truganina each night. Like many industries, the supply chain has been challenged by driver recruitment and retention.

What’s Next
To further improve our delivery arrival times a number of steps are being taken, including:

Increasing the number of vehicles used
Recruiting additional drivers
Improving delivery run sequencing
Increasing warehouse capacity for retail product preparation
Deferring the timing of some upcoming distributor transitions

We’re also working towards introducing reporting of arrival times at retail outlets, which will help improve visibility of problem territories.

CONTACT US:
To better support you, we have increased staffing in our call centres, including on weekends.

Should you have any questions or issues, please contact your Area Logistics Manager, Area Sales Manager or the News Retail Support team on 1800 639 700 or via email at newsagents@news.com.au.

Kind Regards,

News Corp Australia

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Newspaper distribution

Omega Mart by Meow Wolf – an immersive and confrontative retail-inspired art installation

I am grateful to have been able to visit Omega mart by Meow Wolf at Area 15 in Las Vegas recently. This retail-inspired immersive art installation gets you from the moment you enter the shop.

It sells the most ridiculous of products.

Omega Mart challenges the senses, especially when you step trough the retail displays into the behind the scenes of the ‘shop’.

As a retailer I found it fascinating looking at the perspective of retail the artists brought to life in this. It was a very different cultural experience, one I enjoyed immensly, and one I have reflected on plenty of times since as I have contemplated retail of the future.

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Fun

UK partworks publisher Eaglemoss ditches Aussie newsagents after years of loyal service for a paltry margin

UK artworks publisher Eaglemoss has decided to supply the Doctor Who part series from issue 201 on direct to customers in Australia. The decision was announced in a letter to collectors.

Eaglemoss has not written to newsagents thanking them for their years of loyal service.

I reached out to the company through a couple of social media platforms querying the decision and received no response.

Eaglemoss has consistently failed to provide newsagents reasonable supply of artworks titles, so I wonder how they will go at providing their direct customers with product. Given their lacklustre customer service, I wonder how Australian subscribers will fare. There is no evidence to suggest it will go well.

It is disappointing the artworks experts at Are Direct were unable to retain previous distribution arrangements for newsagents. I wonder what their take is on the decision? Maybe I missed an announcement from them on this.

Is this the end of artworks in Australian newsagencies? It’s hard to say. But, the future is not bright. That won’t bother plenty who gave up on artworks after years and years of supply failures and the ever present competiton of sweet direct subscription deals.

To some us, however, artworks have been terrific traffic generators that we have sought to leverage into other opportunities. I have written about this plenty of times here. While their value has waned in the years since the closure of the Bissett business, a good part series was one I’d always engage with – primarily because of the TV campaign that specifically tagged our channel. It was the one time we were exclusively named in a TVC.

But back to Eaglemoss and their decision to ditch local Aussie newsagents as the retailers of the Doctor Who part series. Shame on them for their treatment of Aussie newsagents. We deserve better from them. Their Australian collectors deserve better from them.

It will be interesting to see how this plays out.

Of course, this decision plays into a narrative about magazines, which is challenging to avoid. The problem is, we have big business vested interests who are unlikely to engage in genuinely transparent dialogue on the topic.

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Ethics

Connecting with the Platinum Jubilee celebrations

There was a time when every royal celebration or anniversary was a big deal in Australia, and shops would have a range of products with which people could engage.

It’s 2022, and times have changed. That said, there is good interest in the Platinum Jubilee of Queen Elizabeth II. As an authorised partner of the Royal Australian Mint, I am grateful he have access to mint coin products marking the occasion.

The coins have the dual appeal – to those who support and / or loyalty the Royal Family, and, too coin collectors.

We have found them useful in attracting shoppers who might otherwise not have considered us. Having an online store to easily connect with them has been key – not only for sales but for those who use the online store to find products they then come into the shop to purchase.

We have made the most of the opportunity through in-store product placement, email marketing and social media engagement, with collateral we created ourselves.

While we do have all the magazines with the Queen on the cover, plenty of other retailers have them too. The coins are a little less accessible elsewhere, which I like. They have given us an opportunity to differentiate.

I’d note the price point range of $12.50 to $100.00 makes these collector coins accessible to a wide group.

While I am no booster for the Royal Family, I am glad to haver had these products and plenty of our customers are appreciating them.

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Newsagency opportunities

newsXpress launches national Thank You card give away to encourage Aussies to share appreciation

Today, newsXpress launches Thank You card giveaway promotion through participating newsXpress stores. This is a newsXpress exclusive promotion.

Offered at no cost to newsXpress members and funded 100% by newsXpress and not suppliers, this promotion is designed to help Australians appreciate others.

The pitch is simple: buy any 2 cards in a single transaction, and you get a Melbourne-made, Melbourne-designed, Thank You card (valued at $6.99) for free. There is no card purchase brand requirement.

newsXpress members have been provided with the free cards, envelopes and double sided A2 posters for promotion, as well as access to digital assets.

The campaign was soft-launched a few weeks ago in my own stores to test shopper reaction and see if there were any kinks. It has gone amazingly well, driving growth in card sales, generating excellent word of mouth.

Customers who know about the promotion are keen to get their free card while those who do not know love receiving the free card.

In creating the promotion, my goal was to shine a light on a vital product category while providing customers with a way of appreciating others. We know that people keep cards they receive, meaning the free cards given by our customers will be keepsakes warming hearts for years to come. This is a good news promotion, a heartwarming promotion, something all involved can feel proud of.

I figured that by mid 2022 we’d all have people to appreciate, people we could say thank you to. The free card is a no-cost prompt to spread the appreciation, to help do good in the world.

The campaign actually started when I was looking to create a mid 2022, valley fo retail death (you know, between Mother’s Day and Father’s Day) promotion to drive shopper traffic and engagement. That was more than 6 months ago. Yes, this campaign has been a while in the making.

Here is the card design. The finished card includes beautiful and quality gold foil and embossing treatments, reflecting the $6.99 price tag on the card. Having the price printed on the card was a key piece as it denotes value.

I am proud that newsXpress has been able to bring this promotion to life for its members, to do so without cost, without supplier obligation and in support of one of the most valuable product categories a newsagency offers.

I am not aware of any similar promotion in our channel in the past. Sure there have been card giveaways but they were supplier specific and requiring more cards purchased. I wanted to ensure there were minimal barriers with this promotion. This is one reason I did not ask any suppliers for funding, even though I am sure they would have offered financial support.

The 2 card purchase requirement was set based on basket data. Less than half card purchases have 2 cards in them. Subtly, the promotion seeks to raise that number.

The Thank You card caption is one of the best performing in Australia. Thank You cards play a vital role in appreciating others and reminding them of that appreciation years down the track when they look at the cards they have received.

In local small business retail it can be challenging to differentiate ourselves, to be noticed. Too often I think we imitate big business strategies and tactics. I also think there are too many supplier-led promotions that are cumbersome and designed to serve the supplier first.

 

This promotion serves the customer first. We did this knowing that it would also serve us. Our trial in recent weeks has shown this happening, wonderfully, valuably.

Okay, here’s my core newsXpress pitch: this campaign reflects what’s different about newsXpress. It creates innovative, engaging and compelling marketing opportunities for all newsXpress members, regardless of size, location or product supplier allegiance. We do this to help you encourage existing shoppers spend more, new shoppers to visit and for shopper visits be be more financially valuable to you.

newsXpress works across a range of product categories. Cards, though, deliver excellent results with many reporting 20% and more year in year growth, adding many thousands in a year to net profit, and often doing this on a lower capex.

The national newsXpress exclusive Thank You card promotion starts today. I am grateful to be part of this local store led movement of Australians appreciating other Australians and that we can do this with Melbourne designed and made product.

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Greeting Cards

Stocktake training for small business retailers

My advice to retailers is to never pay an outside party to do your stocktake and never do a stocktake outside of your POS software.

The most accurate stocktake result for any retail business is doing it yourself, using your POS software.

Recently, I got together with one of the stocktake experts at Tower Systems to discuss this and answer common stocktake questions we are asked.

Again …

  • Don’t use an external stocktaker.
  • Do your stocktake yourself.
  • Use your POS software to record, live, m the stock count.

This is the best approach for maintaining accurate stock on hand data and for valuing stock prior to a change of hands of the business.

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Newsagency management

Newspaper publishers continue to fail to understand shopper loyalty

The marketing approach by newspaper publishers is, in my view, selfish and ignorant. Look at these offers from The Age:

They discount to customers far more than the meagre margin made by retailers. They offer the discount by locking you into a service that is patchy in performance at best.

And, their offers ignore the easiest low hanging fruit opportunity to drive loyalty – the already loyal over the counter newspaper customer.

They could easily pitch to over the counter customers a pre-pay offer that achieves the same lock in, which is what the publisher wants for their advertising pitch.

If they had not disrespected newsagents so much, they could have worked with the channel for a genuinely mutually beneficial result. Instead, they pursue poor performing home delivery at a discount far deeper than the wholesale cost of the paper.

Maybe I am missing something, but, from where I sit, the move looks ignorant.

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Newspapers

The Texas Tribune coverage of the horror at Uvalde is a reminder of the value of local independent journalism

What happened at Robb Elementary School in Uvalde a few days ago is awful, horrible. That it is a repeat of too many similar tragedies represents an appalling failure of leadership at many levels of US government.

The Texas Tribune is a not for profit newspaper.

The Texas Tribune is the only member-supported, digital-first, nonpartisan media organization that informs Texans — and engages with them — about public policy, politics, government and statewide issues.

The Tribune was founded in 2009 by John Thornton (a venture capitalist in Austin for nearly 20 years and passionate believer in public media), Evan Smith (the veteran editor-in-chief of Texas Monthly and host of a weekly interview program on PBS stations), and Ross Ramsey (former owner and editor of Texas Weekly, the state’s premier newsletter on politics and government, now rebranded as The Blast).

This Twitter thread from Sewell Chan, the Editor in Chief of the Texas Tribune shows the importance and value of community funded independent journalism. I share it today to highlight their excellent journalism and to provide insights from Texas on what happened and some history. If you have a moment, I urge you to read what Sewell shared on Twitter:

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Social responsibility

What does the future look like for Australian newsagency businesses?

I did an interview a few days ago and this was the opening question.

What does the future look like for Australian newsagency businesses?

While we won’t know the answer for years, what we know today is what we offer the local communities in which each of us serve.

The question from the journalist was rooted in a belief that our future relied on the sales of lottery products, newspapers and magazines.

Thankfully, for many in our channel that is not the case. Many of us have followed paths on which we do not rely on these legacy products while, at the same time, continuing to offer these products.

More of us in our channel to do more to spread the word that the local Aussie newsagency is evolving, and that the future looks bright because of this.

My newsagency software company serves more than 1,700 newsagents. That’s why we created this video and other collateral supporting the Aussie newsagency channel. I grateful to newsagents for their support.

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newsagency of the future

The retail job shortage has retailers changing-up their approach to recruiting

The challenge of hiring and retailing retail workers is worldwide. It is causing retailers to go to extraordinary lengths.

In a small US town I was in a few days ago, of the 25 shops on the Main Street, 21 were advertising vacancies in their front window.

In a Taco Bell that I visited (don’t judge me) 3 days ago, every place where this chain restaurant location would usually promote meal options and deals, they were advertising for people.

The moment you step into Taco Bell, you see this table.

Four of the windows had these signs facing inside and out.

The front window had sign writing, too:

Above the registers and at the self-service tech screens they had signs too.

But back to the table inside the front door. They had collateral pitching employee benefits:

On top of all this visual noise is the pitch at the counter. Yes, they were asking some (but not all) customers if they knew of anyone looking for a job.

In this Taco Bell outlet, looking for new staff was more important than promoting what they sell.

Apple responded to their staffing challenges with an announcement a couple of days ago. Apple is increasing the pay of retail employees by 10%.

Apple Inc. is raising salaries for retail workers in the US by 10% or more and upping its global companywide compensation budget as it faces a tight labor market and unionization efforts.

The company is hiking hourly pay for retail staff to at least $22 per hour, up from a previous $20 minimum, the company told employees on Wednesday. The move follows a pay bump in February after inflation grew more severe and some staffers complained about working conditions during the Covid-19 pandemic.

Apple and Taco Bell are not alone.

During the trip to the US I got to speak with a broad range of business owners and managers. Staffing is their top of mind challenge. Some are taking the Apple approach and increasing pay rates. Others are offering signing bonuses and new employee referral bonuses. Others are ensuring they run companies people enjoy working for.

The staffing problem exists across all sectors in all settings. Bigger businesses are more likely to use money to address the challenge. In small businesses we have more flexibility in terms of our response. But respond we must, otherwise, we will struggle to retail people let along hire new people when we need.

I am not suggesting we follow the Taco Bell approach. I think that approach is more rooted in decades of minimum wages and challenges in terms of the grind of the work in the business. I shared the Taco Bell story because I saw it first-hand.

Local small business retailers in Australia will need to address the staffing challenge in the way that is most appropriate to their situation and settings. If I was to offer any advice on this it would be be sure to have a plan, because you don’t want to react when facing a staffing shortage that is negatively impacting the business.

Let’s talk for a moment about why there is a job shortage.

More people are able to work from anywhere than ever before;. They can find good jobs, well-paying jobs, working from home. For plenty, this has enabled them to break free from minimum wage and jobs with a high commute cost.

There’s more gig economy work, too. This offers flexibility for people with other demands on their time.

I don’t see these things as temporary.

8 likes
Newsagency challenges

What’s the value of newspaper advertising?

Clive Palmer is reported to have spent close to $100 million on advertising during the federal election campaign with a significant chunk of that spent on newspaper ads.

If seats in parliament was the goal, the advertising failed.

While we could critique the ads as being the cause of the failure, the issue could also be the medium.

Is newspaper advertising as valuable as it once was?

We already know newspapers are not as valuable for the once rivers of gold real estate, employment and car advertising.

I am sure people far more skilled than me will dissect the Palmer ad spend and consider what it may indicate for newspapers and their publishers.

I’d be particularly interested in scholarly assessment of the Palmer spend coupled with the clear bias of News Corp in its propaganda type coverage supporting the Coalition parties and negatively covering Labor, and their even more negative coverage of the independents.

From a newsagent perspective, we are part of the distribution channel for print newspapers. The topic should interest us in the context of the role of newspapers in our future. I think this election showed us that newspapers, particularly the News Corp newspapers, are not as important or influential as they have been.

Will this 2022 federal election be something we look back on in the future as a point in time where the value the medium was significantly diluted because the actions of some newspaper publishers demonstrated disrespect for what was once a valued moral authority.

I know of a couple of newsagents who recently moved newspapers from the front of the shop to the rear because of election coverage in their main daily newspaper.

After writing this I caught up with the latest Media Watch …

9 likes
Ethics

The cashless narrative

I am seeing more and more retail businesses going cashless. While some make the move without explaining why, others, like this bakery I saw in the US, provide the narrative.

I like this approach.

If it were solely up to me, we’d be cashless in at least 2 of more stores. I am keen to avoid the costs associated with cash: end of shift balancing, banking, making change.

2 likes
Newsagency management

Updated advice for new newsagents, those who have bought a newsagency

This is not a complete list. Also, it’s my list. Others will have their list.

Before you get to the list, consider  consider the type of newsagency do you want to run: retail or agency. In my opinion, retail has growth opportunities and relies on you whereas agency is flat or declining with others in control of much of your business. I am more interested in retail.

You drive business value by playing at the boundaries of the business, broadening what you sell, the price points you can achieve and the new faces you can attract. Attracting new shoppers has to be a key focus as this feeds into other metrics.

Plenty of people offering newsagents advice on how to run their businesses and what to stock are not newsagents, not even retailers. Often, they are not business owners with a vested interest in your success. Be cautious about advice offered, especially from supplier reps. Their needs are likely not your needs.

I own the newsagency software company supplying more newsagents with software than all others, I also own the newsXpress marketing group and I own 4 newsagencies. Best of all, every day I get to work with retail experts, retail practitioners. They have the best advice, from lived experience, successes and failures. In offering advice here I’m not trying to make money off of you. The advice is offered free to anyone to read and use or not.

Here’s my updated list for new newsagents:

  1. MAGAZINES.
    1. Arrive invoices through XchangeIT – no other way.
    2. Only sell magazines by scanning. Never use department keys.
    3. Do not label all magazines. Do not label weeklies or high volume monthlies.
    4. When returning magazines, scan out returns. Do this at least weekly.
    5. Do not early return magazines the day they arrive unless you have been sent too many. Often newsagent who early return deny the opportunity of sales.
    6. Early return at least twice a month – based on what is NOT selling.
    7. If you have sub agents – only supply them through the sub agent facilities in your newsagency software.
    8. Check your magazine account as soon as it comes in to ensure you have received all credits.
    9. Pay your magazine bills on time without fail – avoid being cut off for weeks without magazines.
    10. You control where magazines are placed, it is your shop.
    11. You do not have to put posters in the window. I recommend against this.
    12. You do not have to do big magazine displays – it is your choice. I see no evidence of it increasing sales.
    13. I recommend against letting magazine companies set up display unless you think they will help drive sales.
  1. NEWSPAPERS.
    1. You control where newspapers are placed, it is your shop.
    2. If you are regularly undersupplied, complain to the publisher as well as the supplying newsagent (if you do not have a direct account).
    3. Scan all newspapers you sell.
    4. Scan all newspaper returns – accurate data will be your friend in the event of a dispute
    5. You do not have to put out newspaper posters or place newspapers in a certain position unless you have signed a contract with a publisher agreeing to this.
    6. Manage your exposure to promotions where you sell stock for a tiny margin.
  1. CARDS.
    1. Cards have the largest %GP of all physical products you will sell (except coffee if you offer that). Treat cards with the respect that value demands.
    2. Think carefully before signing a contract.
    3. Pay for your own fixtures.
    4. Put out your own cards. Learn what you stock. Take ownership of this most important product category.
    5. Ideally, do your own card order. It’s your money being spent. Don’t leave this to someone else to do.
    6. Agree on an ordering process with your card co. account manager, for example what number of cards remaining in a pocket to order on.
    7. Immediately report any over or under supply.
    8. Trust your data ahead of your gut and ahead of sell-in reports from suppliers.
    9. Pay on time or risk being cut off.
    10. Discount seasonal stock at the end of the season for a couple of days to pick up stragglers and make an extra few $$$.
    11. At least every two years (preferably annually) undertake a range review of sales by pocket based on your sales data, not card company provided data.
  1. STAFF.
    1. Decide on your pay rates. The award is best used as a base guide. It’s likely that to attract and retail good staff you will need to pay above award.
    2. Ensure everyone has a list of things to do each day.
    3. Have a documented position description against which your employees are measured.
    4. Have a written roster every week.
    5. Have a structured process for handling annual and sick leave.
    6. Use payroll software for record keeping.
    7. Pay always on time and preferably by electronic transfer.
    8. Pay super on time. Do not start someone working for you unless they have provided a super account number with their tax file number.
    9. Change your roster regularly for casuals.
  1. STOCK  AND SUPPLIERS.
    1. Every day, look for opportunities to attract new people through what you choose to range and how you display it.
    2. Do not buy for yourself, what you like.
    3. Only see supplier reps who have made an appointment.
    4. If a supplier rep tells you something will be a success, ask for the evidence.
    5. Use your computer system to guide ordering of stock – order based on sales.
    6. Order to a budget.
    7. Scan everything you sell.
    8. Scan out personal use stock.
    9. Set your own mark-up policy for items that are not pre priced.
    10. It is easier to discount than increase prices.
    11. Do not pay for an external stock taker – do it yourself through the year.
    12. Check high theft risk items like weekly or fortnightly.
    13. Arrive and price stock on the shop floor, and not the back room. You’ll sell more this way.
  1. SHOP LEASE.
    1. Negotiate your own lease. Paying someone who is not financially invested in the outcome is likely to not get a better deal for you, despite their pitch.
    2. Read your lease.
    3. Make sure the permitted use clause serves the future needs of your business.
    4. Pay on time otherwise you could be locked out.
    5. Do not agree to a new lease unless you have read the entire document and are prepared to agree to it in its entirety.
    6. Conduct discussions with your landlord in writing to maintain a paper trail.
  1. GST.
    1. Complete your BAS on time and make any necessary payment – to reduce the opportunity for you being audited.
  1. FINANCE AND OTHER MATTERS.
    1. If you borrowed to get into your business, start paying this off from the first week, make progress everyweek. This avoids you having a challenge when you come to sell the business.
    2. Pay yourself a wage or at least accrue this in the accounts.
    3. Integrate with accounting software like Xero – keep bookkeeper costs down.
    4. Ensure workcover (workers comp.) cover is up to date and maintained.
    5. Ensure you have appropriate council permits for what you sell – i.e. food.
    6. Have a structured banking process that ensures that cash is tracked at all steps and at all time.
    7. Take a data backup every day. The best approach is an automated cloud backup – ask your software company.
    8. Bank every day and bank the takings for each day separately to make reconciliation easier.
    9. Use your software to manage the end of shift process to drive consistency and accuracy.

As I said at the start, this list is evolving with time. I hope it is useful to new newsagents and would be newsagents, to understand some of the day to day tasks you cannot afford to get wrong.

Footnote: I first published a version of this advice 7 years ago.

11 likes
buying a newsagency

Let’s visit the new Just Walk Out format WH Smith store at LaGuardia Airport in New York

I am grateful for the opportunity to see the new WH Smith store at LaGuardia Airport in New York this week. It was a fascinating experience.

This new-tech store is at the all new LaGuardia Airport opened in February this year. It leverages the Amazon Just Walk Out technology, technology I have covered here for several years now. Here’s the front of the shop.

There is no counter. Once you are in, it’s all product. You enter with a credit card.

The digital screen to the side of the entrance explains the process. This is key to quick understanding of access to the store.

On the ceiling you can see tons of cameras. They, and other tech, are elsewhere in-store, tracking you, so you can just walk out.

Products are displayed in a traditional way for convenience.

There is one exit.

There was one staff member on the shop floor, stocking shelves.

The shopping experience is easier than self checkout in that there is no battle when the scale mis-weighs something or when the self checkout tech can’t work out if you have your own bag.

This WH Smith Just Walk Out store experience was smooth, just what I’m looking for in convenience shopping in a transit setting.

The biggest barrier, besides cost,  to wider use of this tech is the fear of theft. I suspect the tech will evolve to further address this. Also, I suspect they have allowed for this in product pricing. However, I’d note that the pricing of products felt no different to what I have seen in regular c-store retail in US airports.

While I don’t want to come off as a booster for Amazon, they have been leading this tech field for years now, first through their Amazon Go stores which continue to trade, even in street front situations in major cities.

The Amazon tech reduces waste. For example, if a customer takes a product out of a fridge unit and later in the visit puts it on another shelf, the Amazon tech can notify store workers and let them know how long it has been out of the fridge. This is fascinating.

While we are seeing application today in the convenience space and in some Amazon owned supermarkets, I think the real innovation will come from new retail formats built around the Just Walk Out or similar tech. This will come about through promotion of this retail innovation, creating demand for it.

The current cost of the Just Walk Out tech means local retail is unlikely to be an early adopter, I think it’s wise to have it in the consideration field as this tech will become affordable for our types of businesses. It would allow us to change the focus to be more about shop floor help than sales counter anchor.

I would not, however, that key to the success is identification of the products being picked up by customers. The consistency of range on c-stores enables tech partners to make setup easier. Having to collect photos of the quality need and from all the angles needed for less mass products would be a time barrier for plenty of retail settings.

In the newsagencies with agency services like lotteries and postal, of course, this tech is not a solution.

Like I said, I am not here boosting for this tech. My goal with this post is to show that is now out there and to note that some big businesses are behind this tech making its way to many retail settings, starting with c-stores. Its wider release now puts even more pressure on independent convenience focussed retailers.

10 likes
retail
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