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

Some newsagents are yet to be advised about a price increase for The Australian, which kicked off Oct. 5

Communication from News Corp. has failed again with plenty of newsagents telling me they are yet to be advised of a price rise for The Australian and The Weekend Australia that started October 5. Here is part of the letter from September 28 I was sent by a newsagent yesterday.

The poor communication has cost some newsagents money given the poor approach to product data handling by the company.

This would never have happened 10 or 15 years ago. Back then, News Corp., folks made sure newsagents knew in advance as well as software companies – so that newsagents had the current advice a week before any cover price change. Now, with so much institutional knowledge lost in News Corp. it is no wonder newsagents who were not informed last week are furious.

News Corp. like to tell Australians how to live their lives. If only they sorted their mess out first.

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Newspaper distribution

Shopping centres in the firing live over covid

Chadstone shopping centre in Melbourne has been the top of the news over the last week following a cluster outbreak from a business in that centre. yesterday, NSW Health issues this notice:

This notice lists more shopping centres. These notices must play into shopper confidence that the centres are safe to visit, which impacts visitror numbers as well as shopping time while in a store.

The notifications remind retailers of the need to run Covid safe businesses and to do this with discipline.

 

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Social responsibility

Ensure you are on top of JobKeeper 2.0 requirements

With JobKeeper 2.0 now in play, it is critical that anyone with employees reviews the JobKeeper business eligibility requirements as well as employee entitlements as to the appropriate tier. This is critical to ensure people are paid correctly and to ensure that you have the necessary information to better inform rostering decisions.

While the ATO website contradicts itself, click here for what I am told is the correct tier eligibility requirements.

Here are the key dates for JobKeeper 2.0:

  • September 28: start paying eligible employees under the second phase two-tier system, based on their hours worked in the comparison period.
  • October 1–14: complete your October JobKeeper monthly business declarations.
  • October 1–31: prepare and submit your business turnover decline to the ATO.
  • Before October 31: ensure you’ve met the wage condition for all JobKeeper eligible employees from the fortnight starting September 28.
  • From November 1: complete your monthly business declaration and confirm payment tiers you are claiming for each eligible worker.
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Newsagency management

The Paperboy website

The Paperboy website provides access to the front pages of newspapers from around the world. The site gets around 1,200 visitors a day from Australia and around 46,000 a day worldwide currently.

I don’t see it as a threat to over the counter sales.

A newsagent contacted me yesterday about the site, worried that it was another risk point. The reality is The Paperboy has been around for 2 decades.

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Newspapers

Masks will be here until there is a COVID-19 vaccine

The mask requirement in Victoria got off to a shaky start with some nasty scenes in retail. As time has gone on, it’s become easier to manager, shoppers have been more engaged with the requirement.

Thinking about this and the now clear value in mask wearing, it is a good time to consider how we in retail can better manage the mask requirement – for the safety of everyone in our shops, especially for those to whom it is a work place.

This tweet about mask and temperature checking in Thailand shows a smart and efficient way to handle masks as the entrance to the shop.

If you scroll down the tweet thread, you can see this video from a school in Scotland:

We are using social media to appreciate people wearing masks.

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Social responsibility

Tabcorp (Tatts) Terminal connect released for newsagents

Following acceptance testing and beta testing, the Tabcorp (Tatts) Terminal connect facility is released in the Tower newsagency software, offering retailers the ability to call up lottery terminal sales into the POS software.

This is in a new release of the Tower software out today. It will be interesting to see how much newsagents use the facility.

The process is simple:

Sell By Scanning Customer Trans. Receipt Barcode

Once you have completed the sale on your lottery terminal go to your POS Register

Locate the Customer Transaction Receipt. It should look similar to the example opposite.

Scan the barcode on the bottom of the Ticket.

Your POS screen will then be filled with the ticket included in the sale.

This text above is part of the broader, more complete, documentation released by Tower. I am sure other newsagency software companies will publish their connectivity advice.

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Lotteries

Stationery sales stalled in newsagencies?

I’m currently collecting data for a July – September 2020 newsagency sales benchmark study. While the process is in its early days, with data from 30 businesses in so far, already I am seeing concerning data for stationery with sales down, against an overall trend for the businesses.

I have data for one business where overall revenue is up 13% while stationery revenue is down 9%. In another case I can see revenue up 9% but stationery revenue down 12%.

While stationery has been challenged in the channel for a few years, these results are worse than the trend. It’s concerning.

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Stationery

Newsagency sales benchmark study launched

Yesterday, I launched a new sales benchmark study to newsagents. This study looks at the Q3 2020 results.

I am collating data for a new benchmark study, looking at sales July through September 2020 versus 2019.

How to participate.

  1. Please run a Monthly Sales Comparison Report for 01/07/2020 – 30/09/2020 compared to 01/07/2019 – 30/09/2019.
  2. Tick the category box. IMPORTANT.
  3. Tick to exclude home delivery and sub agent data.
  4. DO NOT tick the supplier box.
  5. Preview the report on the screen. Save as a PDF.
  6. Email these reports direct to me at mark@towersystems.com.au.
  7. Read the report yourself and see what it shows you about your business.

I will email the results to all participating newsagents and publish the results on theAustralian Newsagency Blog as a service for all newsagents.

I own and run three newsagencies. Over the years I have had three others. I own newsXpress, the newsagency marketing group.

I am grateful that Tower Systems has added 30 newsagents as customers in the last year as customers of our newsagency software,

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Newsagency benchmark

How much space do we need for magazines in a newsagency now?

How much space do you suggest I allocate for magazines in the newsagency? This question came to me last week from someone establishing a new newsagency.

My standard answer today is that you need between 300 and 500 titles to offer a reasonable assortment today. The more accurate answer will depend on your situation. In regional locations, for example, the number would be higher, around 700.

In capital city shopping centre locations, like this photo that I took in one of my Westfield businesses Thursday last week, we are on the low side for range.

In this business, however, this space does well. It is rare we are asked for. title we don’t have. The sales declines in the store are not outside the channel average.

This store used to have three times as many titled two years ago. That space has been given over to higher GP lines such as gifts and collectibles, better traffic drivers than magazines.

Magazines do have their place and having a reasonable range to satisfy local demand is key.

The other question people ask is display. I like the fun face approach we have in this Westfield store. It is easily shopped. The full cover gets to sell the title. Titles can be ‘browsed’ without being picked up, which matters today.

I like placement on the back wall as browsing does not interrupt other shoppers, and it acts as a beacon – it can be seen from outside the shop.

Anyone establishing a new newsagency needs to make sure they do have space allocated for magazines and appropriate shelving for pitching product. While the margin is paltry, it is a category that has some value for the shingle.

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magazines

Some retail businesses are having an awesome 2020

I wrote this article a few days ago for a publication and share it here because I know of some newsagents who are having an awesome 2020 and who feel uncomfortable talking about their success. Kudos to newsagents having a good 2020. This is success you have made for yourselves!

…

Some retail businesses are having an awesome 2020

Yes, some retail businesses are having an awesome 2020, plenty in fact. However, most of those having success this year do not want to talk too much about it. They want to keep a low profile because most of what’s in the media about business in 2020 is negative and they do not want to distract with what they think is a unique good story. Some even feel ashamed at their success.

The reality is that many retail businesses, especially local small retail businesses, are having a good 2020.

Yes, there is excellent good news out there. Here are some good news stories we see in our work with specialty retail channels, without identifying store details. These are channel-wide stories with many businesses in each channel having success.

  • Garden centres are doing very well, offering customers the ability to grow their own produce, be more self sufficient, eat more healthily. Many garden centres we are working with have been challenged to keep up with demand. They have risen to the occasion, helping many folks into their first ever veggie patch.
  • Farm supply / rural produce businesses have had a big and successful year. Sales are up as more people are living in regional and rural locations and needing more materials as they work on their properties in these locations.
  • Toy shops are doing well helping people enjoy their time at home. Those who engaged online have done especially well. Those that expanded their jigsaw, game and relaxation product ranges have done well.
  • Pet shops have done well as pets have become even more important this year, offering comfort and company, making isolation easier.
  • Bike shops are having a terrific year as they offer people enjoyable ways to remain healthy in a safe way.
  • Fishing and outdoors businesses are doing well, too, thanks to their ability to help people be more self sufficient for food.
  • Newsagents are having an awesome 2020 as they have become more relevant through offering essential services, keeping people informed and helping people enjoy home time more through their games, jigsaws, crosswords and more.

We know many small local and independent retail businesses that have done so well that they do not qualify for government pandemic assistance. Double digit growth in 2020 is real for them. They are loving being in business and serving their local community. They are loving that local shopping is more popular in 2020 too.

So, while the TV news and current affairs programs focus on stories of doom and gloom, there are many, hundreds and thousands of good stories, happy stories, stories of growth and success in small business retail … stories of success in 2020.

For many of the business owners enjoying success this year, they have made it happen through their decisions and actions, they have pursued success and for this they have every reason to be proud.

Well done to all of these small business retailers having an excellent 2020, well done!

We are grateful to be part of this, part of the community of businesses having a good year. We are thankful that through what we make we are able to play a role in helping retail businesses find and nurture success.

Now, if only media outlets could share some of the good news stories. They done;t have to look far to find them.

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retail

Spreading happiness from the newsagency counter

We have partnered with an awesome local chocolate maker to source these inspiring and tasty chocolates, which are placed at the counter.

As you can see, each chocolate is wrapped with a message of optimism and inspiration.

Customers are invited to help themselves.

We also encourage them to do this and to take some to mass on the joy.

People love the something for nothing, the tasty chocolate and the messages wrapped on the chocolate.

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Social responsibility

Reject Shop struggling with card supply?

Several Reject Shops I have seen in Melbourne have been out of stock of plenty of cards for weeks.

With their cards imported through a relationship with the Card Factory in the UK, I wonder if they have Covid related supply challenges. The empty pockets were noticed prior to the Sydney port issues.

Hopefully, the empty pockets are giving nearby newsagents a boost in card shopper traffic. I have a couple of stores in this situation – it’s how I first noticed it a week ago.

I’m told the empty card pocket situation is not evident interstate.

Somewhat related … I am surprised The Reject Shop is open during Melbourne’s Stage 4 lockdown. I can’t see anything in their aisles that denote them as essential.

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Social responsibility

Shipping delays may impact Christmas sales

As I mentioned in an earlier post, Christmas is well under way with terrific card sales already in plenty of businesses.

Some suppliers, however, are experiencing delays in shipping Christmas product, delays of 2 to 4 weeks depending on the supplier. These delays challenge business for those suppliers as retailers are already looking for alternative suppliers.

With Christmas alive right now, it’s appropriate retailers make the move.

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retail

Lotterywest and Jumbo working together for online lottery sales in WA

Lotterywest yesterday updated its retailers on a new relationship with OzLotteries operator Jumbo:

Working on a solution for WA
As you know, Lotterywest and Jumbo Interactive Limited have been discussing a solution that will benefit the Western Australian community, and see funds previously leaving WA through ozlotteries.com returned to our State.

On Tuesday 29 September, Jumbo signed a binding Term Sheet with the intent of entering an Agreement that will provide Lotterywest with its online platform and services for an initial three-year term.

This means that existing Jumbo WA online players will be given the option to become Lotterywest players after accepting the new Terms and Conditions, and continue playing Lotto games on a platform they’re used to.

This arrangement helps maintain their current playing experience as much as possible, and will also ensure all available profits from tickets remain in WA to support our community. We’ll now work with Jumbo to transition these WA online players to the new platform by 21 December 2020. We’ll keep you updated as more information becomes available.

This is an important move in WA in terms of preserving lottery purchases from WA customers in the state. It also offers the potential for a better connection for WA lottery retailers with online.

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Lotteries

Customers appreciate environmentally-friendly packaging changes

Customers are commenting positively about the elimination of plastic from boxed Christmas card packaging.

Several suppliers have made the move and it is being noticed. It is also helping drive sales as people can feel the cards. For some treatments this seals the purchase.

Full face placement leverages the tactile opportunity presented by the open boxes.

While we have used social media to pitch the better environmental story, it is in-store where the change is noticed.

Boxed Christmas card sales are strong in our experience, considerably ahead of this time last year. I think Covid is a factor in this. Indeed, I suspect Covid will be a factor in Christmas card sales overall to be up this year compared to last year. I know we are not alone with this experience, which is terrific.

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Greeting Cards

Covid assistance from Lotterywest for WA retailers extended to March 2021

WA Lotterywest retailers received more good news this week:

Dear

In March, the Lotteries Commission Act 1990 was amended to allow specific measures to be taken in response to the COVID-19 pandemic. As part of this, Lotterywest suspended terminal and service fees for all retailers for the duration of the emergency period.

The Premier recently announced that the legislation would be extended for a further six months, which means that the suspension of these fees will continue to be in effect until Monday 15 March 2021. Please note you’ll still be charged for PI Insurance.

I’d also like to take this opportunity to thank you for your ongoing contribution to our strong sales results. We’re confident that upcoming initiatives, including the exciting improvements to Saturday Lotto next month, will further strengthen sales.

If you have any questions, please contact your Retail Relationship Officer or Customer Services on 133 777.

Finally, the health and wellbeing of you, your staff and customers are important to us, so please continue to take care and to follow COVID-19 safe practices advised by the Department of Health.

Thank you.

Kind regards

Susan Hunt PSM
CEO Lotterywest and Healthway

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Social responsibility

This is what online can look like for a newsagent

On Friday last week at 4:45pm we put a gift pack up online. It included 4 low-cost products and a couple of simple things we’d made ourselves to add value and differentiate. It was priced at $34.99 delivered. By 5:30pm we’d sold 19 and a few hours later sold the last of the 20 we’d created.

That’s almost $700 in revenue for $0 advertising investment and minimal labour.

We did it on the back of one social media post, to our own Facebook page, a post we did not boost.

Half those buying used a buy now pay later service.

Having the website for online sales, easy purchase, was key … just as was the sense that the package (call it a hamper if you like) was unique enough to warrant swift action.

I talk here from time to time about the need to make our own success. What we did with this gift pack, to me, is an example of that. We put together a small collection of products, found the right packaging, told a visual story with tissue paper and some other low-cost items, added a couple of our own items for the value-add and put it online.

Not a single customer purchasing was local.

We expected most to be bought by someone for delivery to someone else. We were wrong. All but one were ordered for delivery to the person ordering.

The thing about online is that there are no borders.

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newsagency of the future

Congratulations Australian Golf Digest

The 600th issue of Australian Golf Digest has been published. This is a terrific achievement for a niche Aussie title.

I mention this today as it is an opportunity for newsagents with the title to shine a light on it in-store as well as on social media.

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magazines

Ovato on magazines

Ovato wrote newsagents with an update on magazines…

Firstly we are pleased that only a handful of stores are still closed due to the impact of COVID-19 and the general feedback is that newsagents have performed well during this period considering the varying circumstances in each state, region and location.

Magazine sales in newsagents over the last 6 months from the XchangeIT data indicates there has been a significant slowdown in the overall decline year on year from -11% to -5%. With people moving around less they are relying on their local businesses within their suburb to do their shopping. There is little doubt this is contributing to strong magazine sales results, especially in local shopping centres and regional outlets. We have posted a short article on our social media outlets to re enforce the popularity of magazines over this period if you are interested.

https://ovato.com.au/ContentHub/Article/Consumers-turn-to-magazines-for-inspiration-148

Magazine categories showing strong growth in newsagents during COVID-19 are below and we will be sending an updated Magchart in Oct highlighting the top selling titles in each category to see if you have any ranging gaps.

Children                  +33%
Craft                       +16%
Food and Drink        +36%
Home Interest         +23%
Puzzles                   +19%

Although magazine sales have performed well the advertising market continues to be challenging and some publishers, both locally and internationally have had to make the difficult decision to close or reduce frequency of their magazines. Also given the closure of international travel in March we also had to halt the importing of air-freight magazines. We don’t expect these 200 magazines to return until July 2021 at the earliest.

We are also currently seeing an impact in reduced supply of our UK and US sea freighted titles. Initially we had good levels of supply due to the delay in shipping times, but in recent months we are seeing a reduction in supply levels as many international publishers suspended titles or reduced supply through March to June. This was most evident in the UK as most high streets and shopping centres were closed for an extended period and publishers hibernated titles.

Although we are now seeing a return to normal supply levels ongoing industrial action at Port Botany in Sydney is impacting our delivery schedules and we are now experiencing delays of up to 3 weeks on receiving containers and this is impacting us replenishing new titles to you. We are currently reacting to these changes and unloading some containers down in Melbourne to help improve supply levels through October.

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magazines

Are Media, formerly Bauer, putting magazines in Australia Post and Aldi

From Mediaweek today, Are Media CEO Brendan Hill on a move that will harm newsagents.

Hill revealed that the business has been working on expanding its retail partnerships. “We have just done a deal with Australia Post to trial magazines after all the foot traffic increase from people picking up parcels. We have also done a deal with Aldi to sell the kids’ magazine Bluey. It’s the first time Aldi has sold a magazine and hopefully it might be the start of further opportunities with them.”

Here’s what we know, magazine sales are in decline. While there was a Covid bump, it is shown to be over in states where there are minimal movement restrictions. Last year, unit sales of magazines over the counter in newsagencies were down around 12%. We know from Ovato’s annual report that the decline was considerable across all magazine retailers.

Outside of Covid, based on current basket data, magazine sales will decline this year too.

Newsagents were essential, remained open all through, serving magazine customers and publishers. Many remained open and losing money. The timing of Are Media bringing on yet more retail outlets is disappointing.

Newsagents have put up with years of minimal change to magazine cover prices, meaning that the real GP contribution from magazines has been falling even more than the decline in unit sales.

But that has not stopped the experts at Are Media from thinking magazines should be in more locations. This is a move that will harm newsagents no matter how the Are Media people try and spin it. It does not make sense to me.

Thanks for supporting local small business retailers in Australia Are Media! 

Now we know where we stand.

Is it reasonable to wonder if the Australia Post move is the company considering a move away from our channel. I ask because we know that magazine distributor Ovato wants fewer accounts, not more.

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magazines

A different approach to desk calendar marketing

This social media post I created in a couple of minutes a few days ago has provided a bit of fun. I like it because it’s not the usual oh, look at what we have in the shop for you to buy. This taps into the Corona related challenges in Victoria of recent months and the wish for 20201 to be better – without sounding all whiney about it.

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marketing

Richard Glover on his newsagency experience as a kid

In the pages of Spectrum from the SMH and The Age last week was How porn and a price hike helped this newsagent’s son, a terrific short memoir from Richard Glover about his experience as a son of a newsagent.

It’s a good read. My only wish is that he reflected on newsagencies today as they have come a long way from his memories. Glover wrote:

These days, newsagents rely on gambling, working away at counters in which the air is heavy with scratch-lottery dust. They struggle on – despite falling sales of almost everything on which we used to rely – cigarettes, greeting cards, newspapers, pornography and the long-banned headache powders.

I’d prefer:

These days, many newsagents have evolved from the days of my childhood memories. On the high street they are often the retail innovator, selling gifts, and homewares, supporting local Aussie makers and helping us connect with loved-ones in ways never dreamed of in the 1970s.

The Aussie newsagent is a quintessential business. It’s terrific to see that so many have evolved with the times.

Like many, I have not relied on gambling in my newsagency businesses for more than 10 years.

I wish people writing about our channel did more research to understand the extent of evolution from just a few years ago.

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newsagency of the future

What does newsXpress offer newsagents?

Ten days ago I hosted a Zoom meeting with some of the newsXpress head office team members to talk about some of what newsXpress offers its members. In the video below you can hear from the diverse and skilled group behind newsXpress member support. What’s discussed is only part of what newsXpress offers.

As I have offered before, I’d be happy to share similar insights from other groups.

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Newsagency marketing group

Local retail and hospitality businesses in dispute over use of parking for outdoor dining

There is a fight brewing in some towns between cafe and restaurant owners and retailers. The fight is over car parks and the proposal that they be used for outdoor dining. It is pitting business owner against business owners.

Local councils and tourism bodies appear to preference the re-purposing of car parks for dining, impacting accessibility for nearby retail businesses.

I am aware of a situation where the plan is to remove all street car parking in front of one newsagency and several shops so that a cafe located behind can serve meals and coffee on the street.

I am aware of another situation where a florist business that depends on the three car parks in front of their business for easy customer pick up is set to lose them for a cafe outdoor dining area.

While meetings have been held, there currently appears to be no easy solution.

While, for sure, hospitality businesses have done it tough through Corona, harming the prospects of other businesses solely for the benefit of hospitality businesses does not appear to be fair with those impacted businesses set to lose revenue.

This is an issue that requires thoughtful engagement by the business owners, local councils and other bodies that have a stake in resolution.

I don’t know what the answer is, I do winder if one solution could be to reconsider how the cafe indoor space could be adjusted to make it safer and therefore reduce the reliance of such businesses on car parks for outdoor space.

Further, thinking about some regional towns, there are areas of beautification on the Main Street – large median strips, garden areas with benches and more – that could be replaced with outdoor dining options and thereby reducing the impact on car parking.

Local high street retail relies on ease of access by car. Newsagents have seen the value of this especially since March this year. Top reduce or remove this amenity could negatively impact those retail businesses.

I urge any newsagent who may be impacted to actively engage with council and other bodies involved in decision making. Ensure that your voice is heard and that the possible impacts to your business are understood.

With many of these decisions being considered for weeks and even months out, now is the time to engage on this if it looks like you could be impacted.

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Social responsibility
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