We foolishly received a fake $100 note this week in one of my shops. The bank noticed it when processing the deposit. It’s the top note in this photo.
Click here for a link to the Reserve Bank website page talking about spotting fakes.
Serving local communities for more than 130 years, the local Australian newsagency business plays a vital role in community connection and engagement, bringing to local shoppers products and services on which they rely.
The local Aussie newsagency is quintessentially Australian. It’s a place where people can gather to catch up on the latest news, purchase their favourite magazines and chat with friendly staff. As newsagents, we get to know our regular customers by name and develop a rapport that can last for years.
For many of us, the newsagency is more than just a retail business – it’s an important part of the community. We’re proud to serve our local communities and will continue to do so for many years to come.
If you value your local newsagency, make sure you support it! Shop locally where possible and tell your friends and family about the great service you receive. Together, we can keep our newsagents thriving. Thanks for supporting your local!
And, in case you hand’t noticed, the local Aussie newsagency has changed, it has evolved with the times, often offering gifts and other products that you would not have seen in a local newsagency 15 or 20 years ago.
So, please don’t think of us as just a place to buy your newspapers and magazines, we are so much more than that! We are your local community connection.
And that is why the local Australian newsagency retail business is vital for local communities. We connect people, we help them express their feelings, we help them and their interests feel seen. We help keep local communities strong.
…
Now, let’s get to what this post is really about. While the above pitch is supportive of newsagencies, this post is not about that. I included the above content to demonstrate to you how much the world is shifting.
An artificial intelligence app wrote the above article. I spent a minute on the topic and a couple of keywords. the AI app did the rest, in seconds. I have pasted above exactly what the AI app wrote. I have not edited it whatsoever.
This is how much written content for websites, blogs, magazines and even some books is being generated now. Not everyone uses AI apps, not even most. But you’d never know.
How does this relate to newsagents? To me, it speaks to change. I could not have generated this article with so little input a year ago. Okay, I could have but it would not be as good as this one. I’m not saying the article is perfect. But, if you want something that indexes well with Google to keywords like local newsagent or local newsagency, this article will do the trick.
The world is changing rapidly. AI is having more of an impact on our day to day than most of us imaging.
I know plenty of newsagents are keen for more of the AFL team Coach product following sell-out sales. I reached out to a members of the leadership team at Are Direct yesterday and can share this update from them with you.
I have spoken to the Account Manager for the Team Zone AFL cards. I can confirm no state is being given priority on stock and the % of stock distributed to date is equal. The publisher prints the cards locally here, waits until the final team photos in mid-March then commences production.
There has been a delay in the production and the amount of stock we would normally have by the end of April but more stock is going out tomorrow and also next week. We understand the frustration but we allocate stock as evenly as possible and as quick as it is coming in the door. We do have more overall stock this year than last year so when initial allocations are completed by mid-May there will be larger amounts of stock available for stores that are selling well / sold out.
This is good news. It gives us specific information to share with customers.
You can see the MAGAZINES sign from way off.
The photos are from Saturday morning.
The whole business is well-zoned, better than most airport retail I have seen.
The latest sales data from across a diverse range of toy retailers indicate plush as a super category. To be clear, this is across different types of shops, different banners, using different POS software. This broad cross section makes it reliable and useful. The performance of plush is a stand out.
I am happy about this news as there are still some in the newsagency channel who mock plush, say it doesn’t make money, say it’s had its day. This evidence indicates otherwise. It indicates that those talking down plush have not looked at the evidence, for the evidence shows success.
Now, of course, plush can mean a range of different things, from sub $10.00 items through to $200.00 items, and more.
I have a good range of plush in each of my shops, from a range of different suppliers. It is performing well, delivering growth, driving net new traffic.
I introduced it to the newsagency I bought in malvern just before Christmas. They had not stocked it before. It’s now at $3,000 a month in revenue, and bringing in new shoppers. It’s a good news story from my personal experience – just as I expected it.
What is especially interesting about plush in newsagencies is what is bought with it. That mix is diverse. rarely do you have a single plush item in the purchase. Usually it is 2 or more, and 1 or 2 other items. Plush is a basket means it is a deeper than is often the case basket.
The bonus with plush is the margin. 55% and more GP% is a good number. Plus, the plush shopper is more likely to be back as plush purchases tend to be habit based purchases, making the ‘lifetime’ value of the shopper something to crave and appreciate.
In my experience, the keys to success with plush are having an evolving range, front of store placement, constant change to displays, full displays and the right touch to shopper engagement. Those buying for themselves are collectors and they appreciate being treated as such. Plush is not a toy, buying plush can be like buying a pet.
I am yet to see a newsagency business properly introduce plush and fail.
Several Victorian newsagents shared with me their frustration about newspaper delivery failures yesterday. here is one:
I am dumbfounded after my attempts to find out where our paper deliveries have got to today.
I was advised by NDS customer service that they cannot contact the driver to ascertain when we might receive the delivery, nor can they ensure that the driver delivers the papers and where applicable, magazines directly to the shop front. We are left in limbo not knowing what to expect.
On Thursday just gone, not only were the papers late but our magazine delivery was also late. We have a staff member start work early on a Thursday to ensure that magazines are on sale as early as possible and there are obvious costs wasted when magazines are delivered late
It is becoming an issue as to whether it is viable for us to stock newspapers as the combination of space taken, effort required to manage them an time spent attending issues such late and non delivery of papers outweighs the pittance they earn for us.
Here is another:
Good morning folks, once again we face a disastrous morning for a newsagency.
We happen to be away on holidays and our poor staff have no papers at 9.15 on a Saturday morning.
No communication at all, no notifications from anyone.
I could share more, but they are the same message – no papers, no communication, time wasted in the business, angry customers that erodes trust in the local newsagency business.
The failure of News Corp and Nine Media to get newspapers to newsagents, and to home delivery customers, consistently and on time must be a factor in the future of the print product.
What a mess.
Yes, I own Tower Systems, the company that serves more newsagents with newsagency software than any other and, yes, this is a video I made to promote Tower Systems. It is also a video that shines a light on sky information that is too often ignores by retailers and POS software companies:
Koorie Mail:
Great news 🎉@koorimailnews has returned! @IndigenousX
For the first time in 30 years, they had to close up production due to the floods on Bundjalung. But today is the day they are back, and Edition 774 now @ local newsagents or subscribe
Subscribe https://t.co/fAsxT16XRh pic.twitter.com/zygIBX1NrO
— #ClosetheGap 🖤 💛 ❤️ Campaign 💙 💚 (@closethegapOZ) April 20, 2022
AFL Record:
Our annual Anzac edition is out tomorrow at the usual locations – Coles & Coles Express, Vic newsagents and all nine games, for just $5.
Or subscribe to any or all editions by visiting https://t.co/cDEpSM9qSg.@1116sen @AFLNation @1629senSA @SENWestAus #LestWeForget #AnzacDay pic.twitter.com/xMmFAmhFOK— AFL Record (@AFLrecord) April 20, 2022
And this from last week:
This week’s Best Bets cover. Magazine out now in NSW. First thing tomorrow elsewhere if your newsagency is open in the morning (many are, but not all, sadly). Otherwise Saturday morning. pic.twitter.com/XIZMPNtpYn
— Best Bets Racing (@bestbetsracing) April 14, 2022
If only more publishers would support the channel on social media.
I have been in several WH Smith transit locations recently and found magazines in a slow traffic location in -store, and poorly stocked.
This photo is from one of the Melbourne stores just over a week ago.
In one store, okay, it could be one-off. But more? I mentioned this to someone in the magazine publisher space and they had noticed it too and felt it was a deliberate decision.
Time will tell.
Buy Now Pay Later became a thing for retailers, online and in-store. It wads a way to reach shoppers who otherwise may not shop. We all raced to offer it, and promote it.
Humm, Afterpay, Zip and others made it easy, even though the cost to sales was significant, often as high as 6%.
We chased the cult-like BNPL shoppers without a care about what happened down the road.
The trailblazing BNPL companies have plenty of competitors now with PayPal, credit card companies and banks out with competitive offerings. The BNPL road is becoming rocky with consumer organisations and regulators in several countries calling for regulation of the fintech BNPL operators.
With BNPL maturing, there is data as to consumer behaviour, a better understanding as to how the BNPL businesses make money and the role fees, such as late fees, play for consumers who use BNPL.
These and related factors are likely to be behind share price falls for Afterpay:
And ZIP:
These charts are from www.fool.com.
Does any of this impact retailers offering BNPL? The increased competition does in that if you want to serve that shopper who relies on these delayed payment terms you are likely to need to expand your offering.
There is commentary that some BNPL businesses are looking at retailers playing a role in responsibility for payment. I am not sure how that could work.
That said, I can understand that their model needs to change, because the current share price trajectory is problematic for them.
Retailers liked BNPL because it did (does?) attract new shoppers and it offered a replacement to LayBy. But the explosion of BNPL is driving issues for the model.
My local coffee shop offers BNPL payment through Payo for a coffee and food. Petrol stations have partnered to offer BNPL for petrol and everyday necessities.
In my own shops I am not a fan of the more extensible BNPL offerings,l like Afterpay. Losing ten percent of margin dollars in a purchase make that purchase less valuable. It’s been a topic at a couple of retailer conferences this year.
While I am no expert, to me it looks like a dramatic increase in BNPL competition, the prospect of regulation and pushback from retailers as to the cost of a BNPL transaction are all impacting the share price, and tarnishing the gloss of the BNPL temple.
I expect there to be a shake out, which is likely to be disruptive for retailers. Eventually, I expect the larger and more traditional financial players to stabilise the BNPL model.
Our job as retailers is to offer what shoppers want, when they want it … and to take payment through any form that works for them and us. So, yeah, just as change is an everyday opportunity in retail, it is thus in terms of how we are paid.
I guess the key point I’d make to retailers about BNPL is be aware of the disruption and be curious and cautious about pitches to take on new payment methods.
Some overseas publishers appear to be targeting Australia with dumping type pricing of digital access. Like The New York Times:
And Bloomberg:
They make The Age seem expensive
This is what happens with digital products that have little or no distribution costs. Any incremental revenue is icing on the cake.
Special interest magazine sales are strong in newsagency businesses for which I have seen sales data. And, by special interest magazines I mean fringe magazines, the titles we’d sell less than 10 copies each issue of. Magazines like Cigar Aficionado:
I mention Cigar Aficionado because this issue is easy for us to promote. Brian Cox features in Succession, a hit TV show that has connections to the media and Australia through cast and the broader subject matter.
In my shops we take care to notice covers, so we can leverage them if they present an opportunity. Sometimes, a full cover needs to be seen to gain traction. I think that;s the case with this issue of Cigar Aficionado.
And, yes, I hear some in the gallery complaining about magazine margin. I agree, it is appalling. but, these special interest customers are our most valuable magazine shoppers. They will buy more magazines and are more likely to add other items to their basket than the more regular shopper buying weekly magazines. We can make money by be8ing the specialist magazine retailer in the right retail setting with the right complimentary product from which to derive the value.
No, I am not all in on magazines, all gung-ho. Rather, I note that in some situations the category performs well, making a net positive contribution. Unfortunately, though, shifting the cream from weeklies and high volume monthlies to other retailers means there are now fewer magazine specialists. The ‘experts’ behind this shift, this deregulation, have gone on to other endeavours, leaving us to make what we can of their mess, which, in terms of special interest titles is plenty if done right and in a good situation.
Attitude is another special interest title that benefits from promotion., This latest issue with Josh Cavallo in the cover is timely.
It’s a magazine issue that could be bought for plenty of reasons and not by those who would usually buy this title. By shining a light on this Josh Cavallo issue of Attitude we can attract more shoppers to the shop, for the destination purchase. Social media posts about this could do more for us than pitching New Idea or Woman’s Day. Promoting Attitude would be a blue ocean activity while promoting those other titles is red ocean.
Again, the 25% is meagre, but when you’re doping close to $400K annual in magazine sales you want to take care of it. And, that’s what we are doing.
Including this cupcake dispenser.
A couple of weeks ago I visited several stores in the US in the card / gift / homewares space in Los Angeles. Myself and a colleague made a video about what we saw for newsXpress members. Here is that video.
Videos like this are part of the newsXpress resource kit for members to engage with as they continue to evolve their businesses. As you see in the video, it’s not about saying do this or that. rather, it’s about this what we saw that looked interesting.
Not all newsagency software handles connecting to Shopify. And, time that do connect to Shopify do not do it in the same way.
This can leave newsagents frustrated, spending time double handling, missing sales, and giving up on online.
Good newsagency software provides a seamless two-way data flow between the newsagency software and Shopify. Stock details, pricing and images flow out, and sales flow back.
This makes the newsagency software the sole place for managing stock descriptions, pricing and images. It enables you to have an in-store and a different online price if you wish. It enables you to have an online description which is different to the main description.
Now, if this reads like a sales pitch for my Tower Systems newsagency software, it is. But, this post is more than that. I have heard recently of newsagents giving up chasing sales online because the newsagency software they were using did not offer a complete two-way relationship between the software and Shopify. they were wasting time, making mistakes because of double data handling and getting frustrated.
It’s 2022 for goodness sake. Tower Systems has been a partner of Shopify for more than 6 years. Back when we started with them there was commentary criticising us. Today, Shopify is the platform of choice for local retailers. Those who dawdled in this space have missed out and let others down.
I have a vested interest in Shopify beyond what my newsagency software company does. In each of my 4 newsagencies we win newsagency connected Shopify websites to connect with shoppers outside the shops, to win business we would otherwise not win. We run the shops lean in terms of labour. We need time efficient solutions. This is where the newsagency software Shopify link shines. It’s why I know the solution works, that it serves retailers well.
If your newsagency software does not fully integrate with Shopify and provide two-way connectivity, consider switching.
Oh, and my Tower Systems newsagency software also connects with Woo Commerce and Magento. Newsagents use them too, but they do require a level of tech experience in the shop to make them work for you. Shopify is simpler, it is also evolving faster, which helps you win more online sales.
Outside of those three, Shopify, Woo and magenta, there is nothing worth considering in my opinion.
Newsagents have the best range of Easter cards. If you want an Easter card for friends or family, shopping your local newsagent t will present to you a broader range of cards than you’ll see elsewhere. Plus, you’re like to find a treat or two for an Easter gift … chocolate or something they can cuddle.
Shopping local is all about genuinely shopping local. Given that cards are the same price everywhere, your dollars spent on an easter card in a local newsagency are more likely to stay local than if you buy an easter card at a supermarket chain outlet.
So, if you’re shopping for an easter card this year, thanks for shopping at your local newsagent.
It is frustrating seeing a retailer take shoppers for fools. I think this is what WH Smith is doing at Melbourne Airport. They are promoting a multi buy of Allen’s Party Mix of 2 for $6.50.
Here’s the product.
Right now at Coles, the price is $2,50.
At Woolworths too.
At the IGA in Natalia, they have the product at the regular price of $3.00.
All of this begs the question, how is the WH Smith price special? Well, it’s not special. They want you to buy two, and pay more than if you planned ahead and bought at the supermarket. And, I guess, that’s what is happening here – their pricing is convenience premium.
Given that these products are readily available elsewhere, I wonder what the ACCC would make of the pricing approach that suggests a discount.
Day 2 of the Sydney Gift Fair has wrapped. It’s going well. I say that as a retailer attendee and as a supplier with a stand there (my POS software company).
While the Reed organisers are disorganised in my opinion, and this is a cause for frustration as an exhibitor, the fair itself if proving to be good.
The lower attendee numbers make it a better experience. People are spending more time on the stands that interest them.
There are some new suppliers, and enough suppliers with new products to make it worth attending. Sure, there is plenty of the same old same old, but, overall, there is good product to purchase.
I’m not going to list the new suppliers that I found interesting as that’s information I’ll share privately with others, sorry. But I will not there is a strong representation of baby and kids products, which is good as they are storing categories. Oh, and a good presentation of Australian made products. And, sustainability is a big pitch, which makes sense as it is of top of mind interest to the Gen Z shopper.
There are too many candle suppliers in my opinion and too much in the way of mediocre China made gifts. Plenty in the gift space have moved on from this.
The best part of the fair has been the opportunity to speak face to face with people, to hear their stories and talk retail. Covid was a topic, but not much. Oh, and in terms of discussion around wanting things to go back the way they were, no only said they wanted that, all were focussed on the future and what they can make of it.
What you get walking the aisles of a fair like this you cannot get from a rep or agent visit. It’s not the same.
My POS software company was the only retail POS software company there, which is odd to me. I am surprised others in this space did not embrace the opportunity to be face to face with customers and to use the opportunity to attract new customers. It’s an opportunity lost for them.
The good and timely communications from the Victorian outpost of News Corp continues for us retail newsagents with advice this week on easter arrangements. After years of relying on patch communication from my distribution newsagent, this is welcome.
Good Friday – 15 April
- Herald Sun – normal press start.
- The Australian and Geelong Advertiser are not published – please DO NOT enter zero as this may impact supply for the following Friday.
Circulation Publishing Schedule
- Thursday 14 April – Publish Friday 15 April
- Thursday 14 April – Publish Saturday 16 April
- Saturday 16 April – Publish Sunday 17 April
- Sunday 17 April – Publish Monday 18 April
- Monday 18 April – Publish Tuesday 19 April
News Retail Support Operating Hours
- Over the Easter Weekend (Fri – Mon) – 7:00am to 11:30am
Returns
- Returns may be entered up to 12:00 noon Wednesday 20 April into either iServices, iDeliver or the new Retailer Portal (whichever is applicable)
The Weekend Sportsman
The Weekend Sportsman will be delivered 24 hours early for on sale Thursday 14 April
To those at News driving this, thank you!
Last week I got to visit Rosie Bunny Bean in a suburb of Los Angeles. It’s a small formal local petshop, a family business. I made this video a few days ago to talk about what I saw.
Now more than ever, retail is about the experience, how we make our customers feel.
This political claim in the headline published by the Herald Sun is misleading in may opinion.
The decision to change the game was driven by the lottery businesses from what I understand. That is where it initiated, which does not make it a tax drive.
The Herald Sun ‘report’ feels like it is designed to make the Victorian government look bad. It could also anger lottery customers, which could impact sales, and hurt newsagents.
It’s a non story other than that OzLotto is changing in the hope of, from what I understand, of driving more jackpots, which are expected to drive more sales.
News Corp does run a range of lines across its Australian platforms about tax. What they should disclose at the bottom of every article is the amount of company tax paid in Australia by the company and the percentage of gross revenue this is. Michael West covers this and recently shared:
Murdoch’s News Australia Holdings paid nothing for the seventh year on the trot, despite $1.7bn in income, and Foxtel – as reported here – has been conveniently and slyly “disappeared” offshore to the secrecy jurisdiction of Delaware amid rumours of a sharemarket float.
My point is this media company often shouts about tax, especially as it related to the Labor side of politics, while not reporting on its own decisions and actions relating to its tax contribution to Australian society.
The Citizen (A PUBLICATION OF THE CENTRE FOR ADVANCING JOURNALISM, UNIVERSITY OF MELBOURNE) has published a terrific report into the actions of News Corp. and Nine Media in removing newspaper home delivery from local small business newsagents and putting it under the control of a faceless, contactless mess of an organisation.
I am grateful to Petra Stock for the time she took to understand the issues and speak with some directly impacted. Her reporting on the impact on local family-owned Lygon Media speaks volumes to the disinterest in the offices of News Corp. and Nine Media in delivering a local service for local newspaper readers.
Lygon Media Distributors – a newspaper distribution business co-owned by Fabian Pizzica – made its final delivery run on Sunday, 27 March. Mr Pizzica has been selling or delivering newspapers since 1989, working from age 18 in his father’s Lygon Street newsagent.
In the mid ‘90s, brothers Fabian and Nick joined forces with cousins Robert and Pat (who has since passed away) to form the newspaper distribution arm of the business.
From a few suburban paper runs they grew Lygon Media into a service that stretched from the northern suburbs down to Docklands and Port Melbourne and delivered around 15,000 papers a day.
Lygon Media Distributors closed after newspaper distribution changes. Photo: Petra Stock
Until recently, the family-owned company was one of eight-to-10 remaining larger newspaper distributors, which alongside around 100 smaller newsagents, delivered daily papers around greater Melbourne.
As one of the larger operators, Mr Pizzica says Lygon Media had hoped to win a contract under the new model when News Corp invited tenders last year.
“We were out there buying up territories, increasing the volume. We were spending money and borrowing money to buy more territories, thinking that we’d be big enough for [News Corp] to look favourably on us,” Mr Pizzica says.
But their efforts didn’t deliver a contract. Now, he says, he’s out of a job and the business “isn’t worth anything and we have to pay off debt”.
We’ve all seen, and heard, how upset newspaper customers are with the poor service being provided by the News Corp and Nine Media controlled newspaper home delivery, which can only lead to reduced sales for print editions of their mastheads.
The report by The Citizen provides timely and appreciated coverage.
Personally, I am so lucky to have sold my home delivery runs in 2006, back when they had a good value. But through my newsagency software company, I speak daily with newsagents who did not or could not do this, newsagents who have had tens of thousands, and more, in goodwill ripped from them by the changes to newspaper distribution. This all started in the newsagency channel more than. 20 years ago. Those representing newsagents at the time have plenty to answer for enemy opinion.
