Retailers often fall into the trap of believing that a larger range naturally leads to higher sales. In the greeting card category, this logic frequently results in cluttered displays and stagnant inventory.
newsXpress helps newsagents make fact-based decisions in their business. We do this per store, based on their data and based on their personal situation.
Our recent analysis from 50 comparable newsagencies demonstrates that growth is not driven by the size of the range, but by the efficiency of the “pocket.”
While many newsagents achieved a 10.1% increase in total sales this year, the most valuable insights come from measuring sales per pocket. The data shows that carrying more stock can actually hurt your bottom line if that stock is not performing.
The Efficiency of the Middle Ground
Large footprint locations often struggle with a “long tail” problem. In these stores, the bottom 15% of stock frequently occupies premium floor space without generating a return. Data suggests that mid-sized stores are significantly outperforming larger locations in efficiency. These retailers have found a sweet spot where every pocket earns its keep. Bigger is not always better; it is often just more expensive to maintain.
Consistency in Everyday Categories
Seasonal events like Father’s Day and Christmas provide significant revenue spikes. In fact, Father’s Day performance saw a 24.1% jump in specific stores. However, the true engine of growth is the “everyday” category.
Sales in everyday cards are up 12.7%. Successful retailers use this consistent foot traffic to encourage customers to trade up into premium tiers. By focusing on these daily transactions, stores build a stable financial foundation that complements seasonal peaks.
Shifting Focus to Yield
The strategy delivering the best results involves rationalising slow-moving lines. By replacing underperforming cards with high-margin trending gifts, newsagents are proving they can sell more by carrying less.
This approach requires active in-store engagement. Local activations, such as competitions, give customers a reason to browse the card department when they might not have otherwise planned to. These small interactions turn a routine visit into a purchasing opportunity.
Reclaiming Control of Your Floor Space
As a retailer, you pay for the floor space and the inventory. It is essential that you manage these assets rather than handing control to a supplier. The newsagencies achieving the best results are those that avoid long-term, lock-in contracts.
Supplier interests do not always align with your specific business needs. When you maintain control of your data and your displays, you can make decisions that benefit your unique situation. Success starts with your engagement. Review your data, identify your least productive pockets, and reclaim your retail space.
