any retailers believe that a larger range naturally leads to higher sales. However, carrying too much stock is one of the most common ways an Australian newsagency burns through cash.
Growth is driven by the efficiency of the pocket rather than the sheer size of the display.
If your greeting card department has not been reviewed recently, you are likely sitting on “dead stock” that is costing you money every single day.
When was the last time you looked at card performance in your shop yourself, relying on your data?
Too many newsagents let their card company manage cards in the shop and they rely on the card company for performance data.
It’s possible that the goals of the card company do not match the goals appropriate for you and your shop.
The more you manage your own card performance in your newsagency the more money you will make from cards.
The strategy delivering the best results involves rationalising slow-moving lines and replacing them with high-margin trending gifts or cards that actually sell. You should never let a product have a “birthday” in your shop. If an item has not moved in six months, it is no longer an asset; it is a liability that is taking up space that could be used for a profitable item.
newsXpress helps members make these fact-based decisions by analysing specific store data rather than relying on gut feelings. Your point-of-sale software is a goldmine of information. Use it to identify your top-performing departments and compare them against the floor space they occupy. If a department uses 20% of your space but only contributes 5% of your gross profit, it is time to reduce its footprint.
Reclaim your floor space by identifying these unproductive zones. Instead of letting a supplier dictate what sits on your shelves, take control of your inventory. When you move to a data-driven model, you improve your stock turn, which in turn improves your cash flow. This allows you to reinvest in fresh, exciting products that give customers a reason to return to your shop more often.
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newsXpress supports small local independent retailers to thrive. Find out more at help@newsxpress.com.au.
