Month: August 2024

The first three metres of your shop, from the front windows and door, represent your headline. If you want to transform your newsagency and create a new perception of your business, focus on dramatically changing this space. Leave nothing as it was.

It’s these initial three metres that customers will see and use to decide the type of shop you run. This is your opportunity to defy expectations and create disruption. Don’t give them what they anticipate.

Products and fixtures are open to change. If your counter is in this area, it also requires a dramatic overhaul.

To achieve this, close your shop one day and remove everything from the first three metres, starting with a clean slate.Commit to not returning any original items to this space. It will be challenging, and you’ll likely feel the urge to reinstate familiar elements. Resist this temptation.

The ultimate goal is for customers to express surprise at discovering products they knew you stocked but only noticed due to the changes in the first three metres.

Here are four principles to guide the transformation of your shop’s entrance:

Declutter and Create a Visual Feast

As you introduce new products, maintain a clutter-free entrance. Prioritise visual appeal. Avoid traditional retail fixtures and opt for clean lines, engaging displays, and well-maintained equipment.

Sensory Experience

Consider incorporating subtle elements that stimulate the senses. Play familiar, upbeat music at the shop’s front.Showcase beautifully scented products to create an inviting atmosphere aligned with your business.

Storytelling Through Displays

Instead of simply displaying products, craft a narrative. Develop themed displays that demonstrate how products can be used or benefit customers. Avoid overcrowding displays; focus on showcasing variety rather than quantity to effectively tell your story.

Interactive Elements

Encourage customer engagement by making products easily accessible to touch and smell. Traditional boxed displays are outdated. Present products openly to invite interaction.

The first three metres of your shop hold immense potential. By effectively utilising this space, you can take control, set the tone, make a statement, and continually evolve your business.

f you recognise that your newsagency needs a transformation and your business data isn’t in great shape, there are practical steps you can take within your store to drive change.

Often, businesses in this situation have a traditional shop layout. The advice below is designed to challenge your current setup. It’s radical and straightforward, intended to shake things up and help you see new possibilities.

Remember, change is ongoing. Implement these suggestions, observe the results, learn, and adapt. Your store needs to constantly evolve.

Step One: Reconsider the Newspaper and Magazine Unit

If you have a traditional magazine fixture dominating your store with newspapers facing customers as they enter, remove it entirely. Don’t overthink it; take it out. This prime retail space should showcase higher-margin products.

Replace it with basic shelving. Place magazines on the back wall and newspapers on a bottom shelf. Discard any newspaper or magazine posters as they don’t boost sales.

Step Two: Fill the Empty Space

Use old tables or boxes to create display areas and tell product stories. Bring products to the forefront that customers might overlook. Consider inexpensive options like op shops, your garage, or discount stores. Avoid using spinners in this new space.

Include products you’re proud of, as well as items you think might not work. This helps you understand your customers better. Be prepared to adjust displays weekly if needed.

Step Three: Observe and Adapt

The changes might not work initially. That’s okay. Keep experimenting until you see positive results. If you find early success, build on it.

Given the traditional layout of many newsagencies, I anticipate positive outcomes. One newsagent I know even celebrated the removal of their old magazine unit with a sausage sizzle and chainsaw!

The main goal is to challenge your perspective. Disrupting your store will force you to think differently. These changes can be personally rewarding, even if the business benefits aren’t immediate.

Have fun with the process.

If you’re looking to change your retail newsagency, whether it’s a traditional business or one that’s already undergone some transformation, understanding your current position is crucial. This starts with your data.

Knowing where your business stands is the foundation for future steps. This involves examining your business from different perspectives.

• An up-to-date profit and loss statement
• Current debtors and creditors reports
• A list of all money owed to the business, both formal and informal
• A stock listing with total value
• A dead stock listing (items unsold for six months or more) with total value
• A floor plan showing gross profit percentage by product department or category and floor space allocation
• Total rostered hours per week, including owners, and revenue per hour
• A revenue comparison by category for the past six months compared to the previous year

It’s not enough to simply desire change; you need to understand your business’s current state and capacity for change. The information above will highlight immediate opportunities and your ability to invest in changes. This is the starting point for any business I work with on transformation.

Reviewing this data, I recommend focusing on quick wins to build momentum. For example, if you have $10,000 or more in dead stock that’s already paid for, clear it out. Releasing this cash and space will benefit your business. Create a clearance area and apply a consistent discount, such as 50%.

While addressing dead stock, analyse the rest of your data to understand current performance and identify potential opportunities within existing categories. This can guide your initial steps.

As you explore the data, create a list of ideas and action items. You might discover previously overlooked opportunities.

Some retailers seek advice from accountants or business consultants. While this can be helpful, it’s essential they have current, hands-on retail experience in your specific industry.

Remember, it’s your business. You’re the one driving change and transformation. Take ownership of the process.

Start by gathering data, streamlining your business, and building a strong foundation. This will position you for more significant changes in the future.

Free management advice from newsxpress for all newsagents.

This strategy offers a mutually beneficial approach to increasing customer base, supporting local communities, and enhancing brand reputation. By partnering with a well-regarded community group, businesses can tap into a new customer demographic while contributing to a worthy cause.

Identify a local community group that enjoys widespread support and has a membership base that overlaps minimally with your existing customer profile. Propose a partnership where the business offers a percentage of each purchase made by group members and their families to the organisation. In return, members receive a discount on their purchases.

Careful consideration should be given to the financial implications of the offer, ensuring it aligns with profit margins and anticipated sales increases. A trial period can help assess the campaign’s effectiveness and allow for adjustments as needed.

Leveraging point-of-sale software can streamline the process, allowing for easy tracking of discounts and donations through dedicated member cards. These cards can become a sought-after symbol of membership and community involvement.

The primary objective of this campaign is to attract new customers and generate additional revenue. While offering a discount may reduce profit margins on individual sales, it is justifiable as an acquisition cost for new business.

To maximise the campaign’s impact, actively engage with the community group to encourage member participation.Celebrate the partnership through public events, social media, and storytelling to foster a strong sense of community and mutual support.

This collaborative approach embodies the spirit of local commerce, where businesses and residents work together to create a thriving community. By utilising point-of-sale technology, businesses can effectively manage the campaign and measure its success.

newsXpress provides more comprehensive advice than covered here. It’s proprietary so we’d not going into the full details for obvious reasons.

The strategy outlined here benefits the business and community group but can also enhance brand reputation.

By aligning with a valued local organisation, businesses can demonstrate their commitment to social responsibility and strengthen their connection with the community. Positive word-of-mouth generated by satisfied customers and the community group can significantly boost brand awareness and loyalty.

Good luck and enjoy your local community.

This week, we have been delving into fundamental aspects of newsagency operations that can significantly impact business performance and customer satisfaction. By focusing on these core elements, we can differentiate ourselves from competitors and foster a loyal customer base.

This is free advice from newsXpress as we encourage all Aussie newsagents too run more relevant and loved local retail businesses.

Customer service is often hailed as a key point of difference for newsagencies. However, is it truly setting us apart? While many of us pride ourselves on our community connections and customer care, the reality is that the bar for service is continually rising.

Basic service standards, once considered exceptional, are now becoming commonplace. Greeting customers, rewarding loyalty, and offering additional services like gift wrapping are no longer optional but essential. The question is: what extra steps can we take to truly distinguish ourselves?

Consider how you respond to customer inquiries. Do you simply tell them what you have, or do you go the extra mile by showing them? Are you bringing back-office challenges into the customer-facing environment? These actions can greatly influence a customer’s perception of your business.

Moreover, providing product information and care instructions, especially for gift items, is becoming increasingly important. It demonstrates your commitment to customer satisfaction and can build trust.

1. Do you greet shoppers? More and more of our competitors are doping this. While traffic, labour cost and average spend may challenge the financial model of a greeter, the service is a customer service benchmark.
2. Do you reward loyalty? If not, you’re not meeting today’s minimum customer service standard.
3. Do you offer a gift wrapping service?
4. When a customer asks if you have something do you tell or do you show?
5. Do you bring back-office challenges to the shop floor?
6. Do you provide product service and care info? If you sell gifts this is becoming essential to good customer service.
7. What’s better about what you do compared to those who compete with you?

Ultimately, the key to superior customer service lies in answering this question: What sets your newsagency apart from competitors? We all sell similar products, so it’s how we deliver those products and interact with customers that will make a difference.

By consistently exceeding customer expectations, we can drive repeat business and foster a strong reputation. Remember,every interaction is an opportunity to build loyalty. It’s time to challenge ourselves to reach new heights in customer service and reap the rewards.

Australian newsagents hold a significant position in the greeting card market, accounting for nearly 35% of all card sales nationally. As the largest retail channel for cards and with impressive gross profit margins of 50-70%, it’s clear that cards are a cornerstone of the newsagency business.

However, while cards are undeniably important, are we optimising their potential? Many newsagents delegate card management to staff without sufficient oversight. This is a missed opportunity.

To maximise card sales, consider the following strategies:

• Take control of your card department. Avoid relying solely on merchandisers. Gain a deeper understanding of your product range to better assist customers. Empower all staff to engage with customers about cards.
• Refresh your card selection regularly. Collaborate with your primary card supplier to update your range at least annually.
• Prioritise seasonal cards without neglecting everyday options. Ensure seasonal cards are prominently displayed without compromising sales of popular everyday and lifestyle cards.
• Leverage licensed characters. Cards featuring popular characters often sell well. Explore opportunities to stock these items.
• Create a strong card and gift connection. Cards and gifts complement each other. Optimise product placement and promotions to encourage combined purchases.
• Implement a loyalty program. Reward repeat customers to foster long-term loyalty.
• Enhance card department visibility. Position your card department at the front of the store and ensure it is well-lit to attract attention.

By implementing these strategies, newsagents can significantly boost card sales and strengthen their overall business performance. Neglecting this crucial product category risks losing customers to competitors.

This advice is part of a series on basic Newsagency management advice rom newsXpress, a marketing group that helps newsagents run more valuable and enjoyable local retail businesses.

Beyond the core strategies we have shared above, several other factors can contribute to the success of your card department. Firstly, data analysis can provide valuable insights into customer preferences and purchasing behaviour. By tracking card sales, you can identify popular ranges, seasonal trends, and customer demographics. This information can be used to refine your product selection and marketing efforts.

Secondly, staff training is essential for maximising card sales. Ensure your team understands the importance of the card department and can effectively engage with customers. Providing product knowledge and sales techniques can significantly impact customer satisfaction and purchase decisions. By investing in your staff, you’ll create a more knowledgeable and confident salesforce.

A well-executed magazine relay can significantly boost sales in a relatively short timeframe.

In our experience, the return on investment for a few hours of dedicated effort is substantial and typically realised within a month. So, why is a magazine relay so effective? Fundamentally, it drives increased sales.

The Mechanics of a Magazine Relay

A typical relay two or less hours.

While it’s possible to delegate this task, taking ownership of the process is highly recommended. A hands-on approach reinforces your leadership and allows for a more streamlined operation without the complexities of team management. It’s essential to remember that a magazine relay is an ongoing process, not a one-off event. Regular adjustments to the magazine layout are crucial for maintaining sales momentum.

Optimising Magazine Placement

Ideally, magazines should be displayed on a dedicated wall space rather than occupying valuable centre fixture real estate typically reserved for higher-margin products.

The visual impact of magazine covers can be diluted by excessive clutter. To maximise their appeal, avoid using product headers.

Full facing, where 100% of the magazine cover is visible, generally delivers optimal results. This is particularly effective for smaller assortments of under 500 titles. For larger assortments, consider tiered fixtures with one title per pocket.However, in some cases, accommodating two or three low-volume, specialised titles within a single pocket can be beneficial.

Leveraging Beacon Branding

Highlighting specific magazine categories through beacon branding can effectively attract customer attention. Dedicate the top two or three pockets to a single title to create a visual focal point.

The Relay Process

When undertaking a magazine relay, focus on creating an engaging and visually appealing display. Work systematically,removing and rebuilding sections of the fixture while maintaining clear spaces to avoid confusion. Continuously assess your progress and consider how each placement contributes to the overall narrative.

The Art of Adjacency

Experimentation is key to discovering the most effective product adjacencies. While there are general guidelines, the ideal arrangement can vary depending on customer behaviour and preferences. For example, consider whether grouping titles by brand or by interest category drives better sales.

Some potential adjacency combinations include: cricket, golf, and swimming; wrestling, boxing, and fitness; and creative arts (painting, writing, craft). However, it’s essential to avoid mixing unrelated titles such as soccer and rugby.

Customer Considerations

When designing the magazine display, prioritise customer ease and comfort. Avoid placing titles aimed at older customers in difficult-to-reach locations.

Post-Relay Actions

Once the relay is complete, share your vision with the team and encourage feedback. Monitor customer behaviour and sales performance closely. The insights gained from these observations can inform future adjustments to the magazine layout.

By following these guidelines and maintaining a focus on customer needs, you can significantly enhance your magazine sales through effective merchandising.

newsXpress helps newsagents run more valuable and enjoyable businesses.