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

The challenge of begging in the streets for retailers

Someone sitting on the ground out the front of a shop asking people for spare change is a challenge for the retailer. While some will drop some coins into the cup or cap, some will shop elsewhere to avoid the interaction.

There are other situations where relationships form. I saw this recently in Melbourne where a shopkeeper was closing up for the night and said goodnight by name to the person sitting out the front of their shop asking for spare change. That person said goodnight to the shopkeeper by name.

In Sydney, I have seen the same person on the busy CBD corner for more than 10 years, pitching the same story about needing money for medicine.

I get that many people are living in challenging and fragile situations and that there are significant cracks in the state and federal support platforms available for homeless, unemployed and other vulnerable people, and that this leads to some hitting the streets asking for money. I also understand that there are some who exploit locations, as a form of employment.

For the retailer with someone begging out front, it can be stressful, worrying. It can be hard to know what to do. While begging is illegal in Victoria, there is good commentary from experts that fines for beggars are not the answer.

Justice Connect published an interesting report about begging in Victoria, which I found useful.

In considering how to respond to a specific local situation we have to consider the situation of the person begging, people who want to shop with you, your own team members and others in the community. It is complex, and unlikely to have a simple or linear solution. Each retailer needs to discover the path that is best for them and those they share the situation with.

In my own case, since it is infrequent at the moment, I have found becoming more aware of the situation to be a useful first step. I have also spent some time looking for a respected homelessness related charity with which to connect, and support. I have settled on Launch Housing if you are interested. They do good, practical work, a secular organisation with a good track record. I like that they show the value of a donation in terms of rooms provided.

I understand that paying someone else money does not necessarily resolve your issue and that it can been see as payment to make a feeling of guilt go away. As I said, Launch Housing support is a first step.  The next step, next time someone is begging in front of the shop, it to try and understand. But I reckon that will be easier said than done.

Begging is a complex challenge, and it feels like it is on the increase. Plenty of local small business retailers and close to the front line of this challenge.

18 likes
Social responsibility

More cash free retail in the US thanks to Covid

Talking with retailers in the US this past week it is surprising how many in a broad range of retail sectors have gone cash free during Covid and have remained so.

Signs like this are common in stores I saw in Los Angeles and Las Vegas. The photo is from a gift shop in West Hollywood.

This is a trend that has been evolving for several years. But, pre Covid, it was primarily limited to food outlets. Now, I have seen it in bookshops, fashion, gift, homewares, as well as food. It is common.

Personally, I like the idea of being cashless as it offers less fraud, lower money handling costs, roster time saving, less data handling and fewer mistakes.

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Newsagency management

At Shoptalk 2022 in Las Vegas

I’m flying back to Australia today having been at the Shoptalk conference in Las Vegas this week, as well as in Los Angeles looking at some innovative retail.

Shoptalk was extraordinary. Thousands of attendees. Hundreds of sessions. Hundreds of tech suppliers. Thousands of retail businesses represented.

While I will have more to say on some of the insights next week, I’d note that the extent of change in retail is bigger, and faster, than I can remember. And, the nature of the change is such that no retailer can sit it out.

It’s been a scary, inspiring and affirming week. I am grateful for the opportunity to attend and immerse myself in all that was shared.

Now, here’s a snippet of one of the live entertainment pieces between keynote speakers.

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newsagency of the future

Shanghai Covid lockdown expected to extend supply chain disruption

The 2-part lockdown in Shanghai due to a surge in Covid cases is expected to further impact supply chain challenges given its place in logistics.

Relying on accurate information from suppliers on availability is more critical than ever. Their attention to building their stock situation is key here, as is our own stock piling in our shops to ensure we have stock to sell.

Talking to a range of suppliers across multiple categories, these supply chain challenges are expected to be with us through to the end of 2023 at least.

Related, the new chair of the US toy association wrote about this a couple of days ago:

Supply chain disruptions are an immediate issue of focus impacting our toy businesses, including:

  • ocean freight creating a choke point in transport costs;
  • the impact of shipping challenges on global markets over time;
  • ongoing disruptions caused by the pandemic, including the current lockdowns in Southeast Asia;
  • US-China tariffs on raw materials that are a component in rising costs of global raw materials; and
  • tensions caused by the Russia/China relationship; a destabilized Europe’s impact on selling markets and manufacturing options; and the high possibility of China’s issues impacting other Asian countries.

Add to these global challenges continuing logistics challenges impacting particularly road freight in Australia.

It all makes a stronger than ever case for locally made.

6 likes
Newsagency challenges

Good comms from News Corp. re production

Maybe I have not been paying attention but it feels like News Corp. has improved their comms to retail newsagents.

30 March 2022

Dear Distributor / Newsagent,

A reminder that Daylight saving is due to conclude this Sunday April 3, 2022.

We wish to confirm that production will run to current schedule on Saturday night.

Clocks are not adjusted until after the completion of the run on Sunday morning.

Please make your early morning staff aware of this to avoid any confusion.

Kind Regards,

News Victoria Logistics

Much appreciated.

3 likes
Newspapers

The Federal Budget benefits newsagents choosing software and getting websites

In the budget last night were measures that will benefit newsagents investing in a technology update. This is covered in detailed reporting from the ABC.

Instead, the government is offering a new, temporary tax break for businesses that invest in either new technology or employee training and skills development.

“Starting tonight, for every hundred dollars a small business spends on training their employees, they will get a $120 tax deduction, helping them become more productive and competitive,” Treasurer Josh Frydenberg said in his speech.

This means employee training gets a bonus tax break. It respects the value of training. There are rules, of course, but they focus on training people. It will be interesting to see if any software companies now introduce a training cost.

“From tonight, every hundred dollars these small businesses spend on digital technologies — like cloud computing, e-invoicing, cyber security and web design — will see them get a $120 tax deduction.

This is a clear message about digital transformation, something newsagents need to embrace, urgently.

Of course I am biased in commenting that these moves are good, I own Tower Systems, the company serving around 60% of all newsagents in Australia with cloud based newsagency software and the company that has already developed websites for many newsagents.

But realistically, incentivising digital transformation in small business is a good move.

I don’t think a change of government would change this initiative.

9 likes
Newsagency management

Tighter controls for gambling customers in newsagents in Belgium

Click here to see this report published yesterday by The Brussels Times.

Tighter controls on gamblers in newsagents

Tighter controls on gamblers in newsagents

A newspaper shop in Brussels advertises Lotto products. Photo by Helen Lyons/The Brussels Times

Shops that offer sports betting and other means of gambling will be required to register all customers and check whether they are of legal age or on a blacklist from 1 October 2022.

The new legislation is part of a package of gambling reforms introduced by Federal Minister of Justice Vincent Van Quickenborne after bpost sold its chain of newspaper shops – many of which also offer gambling and sports betting – to a gambling company.

“After the clearer rules for gambling in newsagents, we are taking another important step in protecting people against the devastating consequences of gambling addiction,” Van Quickenborne said in a statement.

“The list of excluded persons is a powerful weapon that we want to use more often. Therefore, we also call on all general practitioners, care workers or social workers to use it, in consultation with the person concerned, at the first signs of problematic gambling behaviour.”

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Lotteries

Mistakes too many small business retailers make when setting up a website

Through my newsagency software company Tower Systems we have a web development team that creates websites for local small business retailers, including newsagents. We have been doing this for years, and have hundreds of websites under our belt.

It surprises me that here we are in 2022 and I am seeing newsagents make the same mistakes from years ago when setting up a website. Not everyone makes these mistakes, but enough do.

So, here is the top 7 mistakes I see newsagents make when setting top a website for their business.

  • Not knowing the target customer. The target customer for a website connected to any shop should not be considered to be the person walking through the r=front door. rather, it should be the person you want to reach, the person who would never walk past your shop. Knowing who they are, where they are and what they could be looking for is key.
  • Making the website a copy of the physical shop. If you copy what you sell in your shop online you are not likely to find new customers and the best website for a shop is one that finds new customers for the business. Nice is best. Niche is appealing and easily found through online searching. Stand for something – not not everything you currently sell.
  • Thinking it is easy and once the site is live you are done. Creating and maintaining a website is hard work, relentless work. Think of a website and a hungry beast, and you have to feed it.
  • Believing a web developer knows what is best for your business. Web developers are not retailers. They may have opinions about what looks good or works well, but do these opinions match the needs of your business. It is best to find a web development who genuine understand your type of business and what you want to achieve online.
  • Failing to understand the total cost off ownership. Paying for a website to be developed is on thing. What is the cost of maintaining it. be sure to have this documented before you begin because once you are into it you are on the hook for future costs. Knowing this upfront is key.
  • Different is good. Too many retailers are lazy, loading images and product descriptions from suppliers. Search engines see this duplication and mark sites down that copy others in terms of content. The more of your own content the absolute better for you and for your business. Sure, this is hard work, but it pays off.
  • Your website is not a destination. Okay, it is a destination for online shoppers, hopefully. But, it is not your online end point. The website will have to evolve and, eventually, be replaced. Go into it knowing it will not be your final online presence, that it is, rather, a stepping stone on a pathway.

I see so many mistakes made by small business retailers, including newsagents, expensive mistakes, mistakes that dishearten and, eventually, see businesses go offline. That’s not the future. Online is key to every retail business.

Invest time to get it right. Move only when you are sure, and ready. And, remember, buyer beware.

Footnote: I know about this not only because I own Tower Systems but because I have created plenty of websites for my businesses. The most useful ones have been those that failed. The successes are terrific. But it’s the failures that are educational.

10 likes
Management tip

The cozy appeal of the newsagency

We have pitched this cozy look at the front of one of our shops over the last week, as part of our approach casting the business outside off what is usual for a newsagency.

The response has been wonderful with new customers visiting, and purchasing. The comments have been terrific.

All the items in the display are full suggested retail even though a third of the products were purchased at half off wholesale. The GP% being achieved form this table is above 60%, which plays against what is traditional in a newsagency.

Vicual merchandising is storytelling and the creative person who put this display together is sure a brilliant storyteller. I am so grateful to have people in the businesses who can do this.

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newsagency marketing

The best way to negotiate a lease in a major shopping centre

Major shopping centres looked appealing for years. All that foot traffic. The bright and shiny look. Being there was appealing.

The Covid hit, and traffic to major centres crashed. It’s coming back, but it’s not where it used to be.

With good space availability, leasing execs are doing the rounds, seeking to fill spaces. In some cases they are cutting deals, while in others the occupancy cost is as high as ever.

My advice to anyone negotiating for space ion a major shopping centre is: negotiate as if you have a better deal elsewhere. Don’t rely on it. Don’t visualise that centre as the only location for you. Have a viable plan ‘B’ and even a plan ‘C’. And, only agree to what you are 100% happy with.

Too often I see retailers agree to leases because of the appeal of bright shiny lights and what appears to be good foot traffic, one;y to rue the decisions for years.

By having viable and appealing options you allow yourself to have a more circumspect off the major centre leasing exec pitchy and that works in your favour.

I know there are people in our channel who say they get the best deals. It’s one think to claim this and another entirely to prove it. Ask for the evidence. In one situation I heard about recently when the retailer asked for evidence of deals a party claimed they had achieved the response was oh, privacy. That’s a crock in my view. If you claim you can get an awesome deal, prove it … otherwise, it remains marketing spin not backed by evidence.

You’re in your lease situation for 5 years at least usually. That’s a long time to be locked into something which with you are dissatisfied or unhappy. It is why you need to research carefully, to be sure you will be happy. It’s why you need to have options so you can compare before you sign anything.

One tip for those considering a shopping centre situation, have a plan ‘B’ option that is outside the centre and it is this different situation comparison that could be particularly helpful in landing at a decision. The two settings are physically and location different, they are usually financially different, too. This is what it is good for you to have the option with which you can compare. I have done this myself and pivoted to outside of shopping centre retail – less stress, lower occupancy cost and higher profit from sales = better business value.

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retail leases

50% gross profit is not “high margin”, a chocolate bar will not save the newsagency industry

I thought NLNA has disappeared, I really had. Then, yesterday someone sent me a link to a video from VANA / NLNA (they use both names apparently) pitching a chocolate bar, I think, with the claim of high margin. Hmm, it’s 50% GP.

Groundbreaking stuff, not.

And the name NewsBar, or is it newsbar, or news bar? Who knows – because they don’t show the product. It’s hard to tell how this saves the industry. And, then, there is the reference that you can get magazines and papers in supermarkets, inferring that people can’t get this in supermarkets. Well, the supermarkets I shop at have a large range of chocolate bars, with brand names that I recognise and make sense.

Decide for yourself. Here’s the video:

I thought it was a joke on first watching. Maybe the promised TV campaign and billboards will make sense of it. I suspect not, though.

65% GP is high. 70% is better. What is better still is getting good margin, well above 50%, on a suite of products with which you can attract new shoppers, ideally shoppers who return, and through this growing your customer traffic reach.

I really can’t see this chocolate bar saving any business. For it to be noticed, recognised, it has to beat products with millions of dollars in. marketing behind them. And, it needs a name that makes sense. I don’t want to eat the news. I don’t want to chomp into a chocolate bar thinking of my local newsagent – that’s an image this name invites.

So much about this sounds and feels ill-conceived boy people not expert in the field.

Leech products that rely on existing traffic can be useful, but not doing-term valuable. A $5.00 chocolate bar is a leech product in my view, unless there is something truly unique about it. At $5.00 is’s likely not a gift, unless it’s a prank gift I guess. But, at $5.00, it’s an expensive chelate bar for yourself, especially when other retailers can satisfy your chocolate crave with okay chocolate for less than half the price.

And, when it comes to satisfying a chocolate craving, I reckon you’re more likely to go with something you know and easily recognise, something widely available.

It’s just my opinion but this pitch feels very 1980s to me. It does not feel like the future. It’s up to newsagents who see the pitch to decide that though.

21 likes
Ugh!

Covid challenges staffing in local small business retail

Not being reported anywhere with accuracy, because it is impossible to track, is the days lost each week in businesses, including local retail businesses, due to Covid.

With financial support almost all closed off now, businesses and employees (depending on employment status) are left carrying the cost.

What magnifies the cost of Covid to businesses is late detection, which has come about because in the change in narrative focus by state and federal governments. Whereas in the past, early detection was key, today, the approach is casual, with no pressure. This adds to infection, especially in close proximity settings, like in retail.

The situation is also exacerbated by softening messages around masks, sanitiser and those steps early in the pandemic that were considered crucial to reducing the infection rate.

In our businesses with a small labour pool, the cost of an infection within the team can be considerable. This leaves us to apply our own rules, like continuing to use masks even when they are not mandated, maintaining acrylic screens at the counter, encouraging the use of hand sanitiser and keeping surfaces clean.

While I get that vaccines have reduced the impact Covid can have on many, it continues to be a risk to those unable to be vaccinated. It is also a risk to the vaccinated in that a diagnosis with Covid means you’re off work for a week, and that has a cost to you or your employer. In some business settings with no spare labour capacity, it can cause the business to close.

I was in Dubai last week and talking to some of the locals, they are happy that masks continue to be mandated outside, in all settings. A couple of retailers I spoke with said this was a key factor in them not being affected.

Here in  Australia, the noise of people demanding freedom has won and we are is a situation where the infection rate is higher, and the costs for business, individuals, and governments, are higher.

Looking at data, in the UAE, with a mask mandate, the current infection rate is 87,000 per 1M population. In Australia, that number is 151,000 while in the US, with a noise freedom chanting group, the number is 243,000.

As a business owner carrying the cost of employees being diagnosed with Covid, I wish this was happening less, that the impact on people on our team was less, that the costs hitting the business were less.

Freedom is more expensive that the measures we all took early in the pandemic.

In the meantime, in my own businesses, I encourage as much as I am able team members to wear masks and take precautions for themselves and their own loved-ones.

10 likes
Social responsibility

Retail advice: shopfit changes worth doing are worth doing well – replacing the shop floor covering

We decided to replace the worn-out carpet in the retail newsagency business that we purchased on Glenferrie Road, Malvern, Victoria, in December 2021.

The decision is part our small-steps approach to refreshing this business. Rather than undertaking a whole shopfit at once, we are making a series of changes over time, as we learn more abut the business and its customers, and, to suit our goal of creating a less traditional newsagency.

So, we decided to replace the carpet.

We got several quotes, and chose a company with a good reputation. we appreciated their honesty regarding the need to close for 2 days to do the whole shop, around 250 sq metres.

The challenges started part way through day 1, when the old carpet was being removed. It turned out that under the old carpet was underlay, more carpet, tiles, and, lino tiles. The business had not changed hands in 38 years and it appeared that the original flooring was still in place for plenty of the shop.

In some places there were not as many layers on top of the original concrete floor.

The carpet installers had not anticipated dealing with so many layers when accepting the removal job from the carpet company. We had to get to the shop to take a look for ourselves as they were asking for more money.

The quote we had agreed to was not, in hindsight, as clear as it could have been. They could have removed the carpet and underlay and laid our new carpet on top. But, that would have resulted in an uneven floor. For the best result, all previous flooring had to be removed, and that would cost, we were told, $2,500.00 more.

A complication was the look of one layer. To be sure, it needed to be treated like asbestos. It was either that or halt the works and have it tested, which was not an option given where the project was at.

So, we agreed to the $2,500 and the removal back to the original concrete was done.

From the Saturday through to the Monday, March 14, the project was completed and new, lush, underlay installed and new carpet on top of that. The result is wonderful, clean, soft, and, quiet, it is very quiet.

From when we re-opened Tuesday morning we have been receiving comments from customers. They agree with us, it’s soft to walk on, and, it’s quiet.

While the project cost more than expected, the end result is well worth it. Along the way we have been reminded some things about shopfit works:

  • Be sure of the outcome you want.
  • Be thorough in your research, so you know the complete scope of the project.
  • Be clear what you want done in the project when seeking quotes.
  • Have a contingency in your budget so you can cope with surprises.
  • Health, safety and comfort of those working in the business and those shopping in the business has to be your top priority.
  • When it comes to flooring, if the shop is old, expect past changes to have been placed on top of old flooring, as it is cheaper.
  • The best flooring outcome starts with new flooring being placed on the base concrete or timber flooring in the building, and not on top of existing floor coverings.

Point 1 is always our position going into anything. it’s why we quickly agreed to the additional payment – we wanted then best outcome.

In terms of health, safety and comfort, we chose a more expensive underlay and this has been key to the customer comments over the last week since installation. The feel underfoot is wonderful.

While we want our shoppers to talk in good terms about what they buy in our shops, them talking in good terms about the experience is equally valuable, especially in a suburban high street situation like our Malvern shop. This is why we invest in shopfit upgrades and changes.

Every week we are making changes in this shop, introducing new product lines, moving fixtures, editing existing ranges and more. But, we are doing this in a small-steps approach – in part so as to not disrupt long-term customers who appreciate certainty (a thriving shop 2 doors away has had the same family owners since the 1930s) and to allow us to adjust as we learn.

On our current trajectory, we think it will be early 2023 before we have the shop feeling how we want it. Completing it before then could see us make changes too soon, and there is no win in that.

Also, our small-steps approach has us in control whereas a more traditional new shopfit approach would see the shoplifter in control and that’s not what we want as retailers.

17 likes
Management tip

Insights from The Retail Summit in Dubai

I am grateful to have been able to attend The Retail Summit in Dubai earlier this week. Here is a video I shot yesterday in which I care some insights from the conference:

While it was terrific to be in a live conference setting again, the travel process was more complex and less enjoyable than it was priorate the pandemic, as you might expect.

I also got to see some innovative retail in the latest mall situation in Dubai. It was all corporate, big business type. But, nevertheless, worth seeing.

15 likes
Newsagency management

Owning your retail space

I am just back from attending The Retail Summit in Dubai. It’s good getting out and looking at other retail again, after 2 years. One thing corporate retail does well is owning the retail space, with a whole of story visual. Here in indie retail world we do not do it well: there are too many messages, too much noise that is not connected, too many distractions.

This first one did feel a bit much, but … it was noticeable.

This one is a toy shop with all wall space dedicated to brands they sell – I suspect funded by the brands. but, nevertheless, effective.

Claire’s is an international chain. Their look has been like this for several years. Their corporate imagery frames the products they sell. Very cohesive.

Now, this last one is a bit different. It’s Typo, the Australian company. While there is a cohesive visual throughout the store, each wall is different. I included this photo to show how they use green life texture to make the shop more appealing.

We have done this is 2 of our shops. Not on the scale of Typo, but it does look good. In a newsagency business it works especially well behind the counter.

4 likes
retail

Let’s talk about theft in retail

My POS software company as a track record of service=, helping retailers detect and address theft – customer theft and employee theft. This includes work in0-store, with police, with prosecutors and in court as expert witnesses. This new video from a few days ago is designed to alert retailers to opportunities for detecting and addressing theft.

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theft

Promoting new cards drives card sales in the newsagency

I think it is important for retailers to promote new cards on social media. It is rare that newsagents do this, which feeds into the narrative of no, I won’t buy cards there because they are old.

We regularly pitch new cards to remind people of the regularity of change. I think it is a key reason for above average year on year sales growth in the category.

We use photos and quick to make videos, like this on from a few days ago.

This video was made for no cost, using an easily accessible tool. If that feels too hard, at least take a photo of a new card that you like and mention it on social media. That type of post is more valuable than one pitching any lottery product or mass market magazine.

2 likes
Greeting Cards

Closing to re-carpet the newsagency

The new shop we took over in Malvern Victoria needs re-carpeting. We did some investigation under the existing carpet and sought professional advice. Given the age of the building, the multiple layers of flooring underneath, including some challenges, we decided to close from Friday through to and including Monday.

This closure allows the whole shop to be done properly and safely for all. Safety is the key here, given what is under the floor.

We have been letting customers know in-store an online. here’s the note we have provided:

News from newsXpress Malvern.

We are closed from 5pm Friday March 11 until 7am Tuesday March 15 so that we can replace the carpet in the shop with new carpet. This is a big job and the safest way to do it for our customers, employees and tradies is to close.

We apologise if this inconveniences you, but, safety is important.

Since we bought this business 12 weeks ago, we have made some changes. You might have noticed the new card wall and the new range of cards. New carpet is the next step.

We are also adjusting where we place the newspapers so we can introduce some gifts we think our customers will like.

Our commitment is to offer you the best range of magazines you’ll find in Melbourne, a wonderful range of cards, gifts you’ll love to give and stationery for home, and work.

Thank you for shopping with us, and sorry about being closed for 3 days.

Take care …

Guy and your newsXpress Malvern team.

This shop was in the same family for close to 40 years. We are being careful to not make big changes all at once. Last week it was the card wall and range of cards – all new. This weekend, it is the floor. Next, it is walls and the counter area. In a few months we will start to tackle the main shop floor fixtures.

Before we started any of these changes, we edited what was there, removing ice creams, drinks and everyday confectionery, while at the same time expanding the stationery offering. All of this done based on data.

We have a tight budget. Our approach is frugal, because we know every dollar spent has to be recovered.

4 likes
Newsagency management

Buying a magazine

While Ryan Petersen, CEO of Flexport, a supply chain tech platform, posted this video of him buying copies of a magazine with him on the cover to note him not being noticed, I share it here because I, strangely, found it fascinating watching the transaction in the bodega, a convenience store, particularly found in New York. Beyond the transaction itself, it’s interesting to see what’s at the counter, so cluttered. And, I suspect this shop also sells lottery products.

6 likes
retail

The shock of selling fixtures from the newsagency shop floor

I was talking with a newsagent recently about their first purchase of home furnishing products, two tables for their shop, for displaying product. The tables cost $450.00 wholesale each. The day they unpacked the two tables and put them on the shop floor two separate customers asked how much. Without thinking, the newsagent said $1,195.00. each table was sold that day.

That was five years ago.

Today, that newsagency does $120,000 a year in gifts and $75,000 in home furnishing products. The average GP% for each category is 60%.

The story reminds me of several general truths the it comes to retail:

  • In the shop, everything is for sale.
  • Stock things you don’t expect to sell, because you are not your customer.
  • Having products people want gives you a margin opportunity you should always embrace.
  • A small step of success can lead to awesome things.
  • The shingle does not define our business.

I was thinking about these things when I shot a video recently in which I talked about opportunities outside of traditional seasons. While Mother’s Day, Father’s Day, Valentine’s Day and similar are valuable, it is what we create for ourselves that is more valuable.

This is true in terms of what we sell. Today, there are more success opportunities outside of what we have traditionally seen in newsagency businesses, and, often, those success opportunities reveal themselves when we are not expecting it.

My point is, play outside what has been traditional for you and embrace where it takes you … don’t be constrained by the shingle and what you think it means.

7 likes
newsagency of the future