Today is the last day of our Bali conference and local maker buying trip. We have met so many creative makers committed to fair trade principles and working to up-cycle and re-purpose to create innovative products through which we can differentiate.
Here’s some of the crew at a wonderful dinner last night.
newsXpress membership is $175 a month including GST. This provides access to a package of opportunities and services that members will tell you delivers financial and operational rewards worth much more than the cost.
Here’s what the $175 a month provides access to:
The $175 a month membership fee is paid each month, by direct debit. This is your membership fee. It pays in part for our services. We also receive rebates from suppliers. these are disclosed to members annually.
You are under no obligation to purchase from any newsXpress preferred suppliers.
In all of our years of operation, there has been no profit distribution from newsXpress. Everything earned by the group has been reinvested for the benefit of member businesses.
Some big retailers are predicting flat or declining sales through 2023 and into 2024 in the US and some here in Australia. There are forecast reports of comp (comparable) store sales, we tend to call these same store sales, of 3% to 5%.
The challenge is that journalists and news editors hear this and attach the downward forecast to all retailers.
We know plenty of independent retailers, including independent newsagents, who are forecasting growth over the same period. Know, not massive growth, but growth nevertheless.
In our own stores, we are planning for 5% growth and hoping for closer to 10%.
But more important than the sales revenue growth number is growth in business GP percentage achieved. Growing that several points is more important than revenue growth.
If you grew business GP% by, say, 3% and overall revenue by 1% the bottom line benefit to the business would be considerably magnified compared to no change in GP% and 1% revenue growth.
There are many growth opportunities in our channel, many opportunities for retail newsagents to achieve good growth in revenue and in gross profit percentage performance.
How do we achieve that?
Look at your current sales data, look for green shoots, indicators of opportunity for you. In a retail newsagency these are typically in cards, magazines and stationery. Sales in these departments can indicate opportunities outside of them, maybe in new areas for the business, better margin areas for the business.
We know of many retail newsagents where this approach of data lead range review and gross profile percentage growth is successful. It’s the newsXpress approach.
Covid.
One of the consequences of Covid was that many shoppers tried local retail for the first time in years. We showed that we offered diversity in products and personal service. We can continue to leverage these differences. But we have to show rather than tell.
Big retail looks like big retail. Their displays tend to be blah and their differentiator tends to be price.
In local retail, displays that are more fun, appealing and enticing can work well. Back this with shop floor knowledge and genuine personal service and price is a secondary factor. people want to enjoy shopping. They want to walk out of the shop feeling good. That feeling is currency, it pushes pure price to a secondary consideration as value is felt in other ways.
The economy.
Yes, there is pressure in the economy because of rising interest rates. There is still plenty of money around for what people want. Want is a big driver for spending. It’s the emotional purchase where you have good opportunity.
Especially as a skilled local retailer who is able to feed into the want.
You.
The reality is that there will be more tough economic news and negative reports about retail. You can choose to watch that and worry, or you can create the retail experience that is an oasis of happiness, a place locals enjoy and are happy to spend. Every day, choices you make in your business determine this.
If you do what you’ve done every day for years, your results will be what you are used to. We think the Aussie newsagency channel can do much better than that.
…
newsXpress helps newsagents grow overall GP%, attract new shoppers and run more enjoyable shops.
newsXpress can help. Email or call: help@newsxpress.com.au 0400 331 055. we can show what you get for the $175 a month membership fee.
We are grateful to launch 2023 with a new opportunity for local Aussie newsagents.
Shop the Hallmark Funko Pop! ornament range now.
One stop on this busy and found retail study tour was Cold Spring, New York …
Some of our newsXpress retailers are with us on a retail study tour in the US and to attend two awesome trade shows. It’s busy and exciting, leading to wonderful evolution in-store.
When it comes to local retail, to owning and running a local retail newsagency shop, motivation is key. As a local retailer, it can be tough to stay motivated every day. The hours are long, the work is challenging, and sometimes it feels like nobody appreciates all that you do. But it’s important to remember why you got into retail in the first place, and to find ways to stay motivated throughout the day. In this blog post, we will share some advice on how to stay motivated and keep your energy up!
First, it’s important to have a clear goal or vision for your local retail newsagency business. What are you hoping to achieve? Write down your goals and refer to them often. This will help you stay focused and motivated as you work towards something specific.
It’s also important to take care of yourself physically and mentally. Get enough sleep, eat healthy meals, and take breaks when you need them. This will help you stay focused and energized throughout the day.
Finally, remember to have fun! Retail can be challenging, but it can also be rewarding, it should be rewarding, you can make it rewarding. Find ways to enjoy your work, and don’t forget to celebrate your successes along the way. With these tips in mind, you’ll be well on your way to being motivated every day!
Yes, it is that simple. try it. End the day with making a short list for the next morning. This means you start the day with things to go, goals to achieve and joy to feel when you tick them off. make sure that the list kicks off with some easy wins.
Never let the list get out of control. Always have it with you, so you can pick something to do, something you know needs doing. Then, do it.
And, if something does feel overwhelming, rather than getting sucked down a sink hole of thoughts, m worry and doubt, take a step, a single step, yes take a step forward because even one step, some small step, can help you feel you have achieved something toward that goal.
While we are not mental health professionals, our experience in local small business retail and working with many retail newsagents is that a small step toward a goal can be motivating, encouraging. In some cases this is the foundation of motivation. It’s why a list can work, why it can be the answer to motivation for a local small business retailer like a newsagent.
newsXpress helps local retail newsagents run more enjoyable and valuable shops. We do this is a range of unique ways that we have developed over the years of working with newsagents, primarily local retail newsagents on the high street and in regional and rural Australia.
newsXpress is a marketing group delivering support, ideas, motivation and commercial opportunities to newsagents – from which they can choose what works best for them.
Buying a newsagency can be a good move. They are solid businesses with plenty of opportunity. From the traditional to the innovative, the local Aussie retail newsagency is a good business to own, one in which new retailers and experienced retailers can thrive.
newsXpress helps local Aussie retail newsagents make the most from their businesses.
There has been a surge of interest in buying a newsagency in the last couple of years. It makes sense. newsagencies are good businesses to own. Hard work, for sure, but good solid businesses that can improve in value.
Retail businesses in our channel are appealing, and, looking out in the market, there are some excellent opportunities.
A common question we are asked by people who find me through is what should I ask for when looking at buying a newsagency?
The question itself, when asked, indicates how green a prospective purchaser is when it comes to purchasing a business. Our first advice is that they better understand the newsagency business of today, to understand what they could be buying into.
There are newsagencies for sale today that are ready to run, and that are easy to run. There are others that need some love and attention. Either could be right for you, depending on your circumstances and what you are looking for.
This is why it is important to you are sure about what it is you are looking for from a retail newsagency you buy. Yes, it starts with what you want.
Here is an updated list of data we suggest prospective newsagency business purchasers access from the vendor or their representative:
P&L from the accountant for the last two years. i.e. not a spreadsheet created for the purpose.
A list of add-backs used to achieve a profit figure on which the asking price is based.
Tax returns for the same two years. While note always appropriate given business structures, they can provide a cross check with the accountant P&L.
Sales data reports, for the last two years, from the POS software in use – to verify the income claim. This source data is key.
Sales data reports from the lottery terminal to verify the income claim.
BAS forms to confirm data in the P&L.
A list of all inventory in the business including the purchase price and date last sold for each item. And, copies of invoices from which you can randomly select to verify.
A copy of the shop lease.
A copy of any leases the vendor expects you to take on board.
A list of all forward orders placed on behalf of the business.
A list of all employees: name, hourly rate, nature of employment, start date, accrued leave and accrued long service leave.
This is good basic information, a starting point, which will enable any purchaser to undertake reasonable assessment of a business.
Our advice to newsagents looking to sell who may be concerned about this list is: think about it now and focus on your business so the data we have listed looks good. The time to prepare your newsagency for sale is every day you are in the business.
This is why we say every day is your pay day. Run a smart, lean and profit focused business and you will have a good pay day today and a good one when you come to sell.
The most appealing businesses are those that are easier to run and are making money.
Sure a purchaser can turn a business around. They should get the rewards if they are expected to do that for your business.
The price you can sell your business for will be based on what it is making now.
But back to those considering buying a newsagency:
Know what you want.
Know what you are capable of.
Know what you could achieve in a retail newsagency.
Buy based on opportunity.
Own the decisions yourself. It would be a mistake to buy a business Ess solely based on what someone else tells you you can do if they themselves are not going to be there to help you achieve those things. It’s why we say you need to own the decisions yourself in terms off what you can do.
newsXpress supports local retail newsagents. We do offer advice and practical help. we nurture, encourage and train. We provide a toolkit and commercial opportunities.
newsXpress can be the sounding board, the support network, the well of assistance. But, ultimately, your local retail newsagency is yours to run how you choose.
newsXpress can be a good support for anyone buying their first newsagency business. We can help you achieve.
Shopping local has a big impact on the local community. Here are four reasons why shopping local matters:
1. It supports the local economy.
When you shop at a locally owned business, more of your money stays in the local economy. This is especially important in small towns and rural areas, where every dollar counts.
2. It creates jobs.
Local businesses are often the biggest employers in their community. By shopping local, you’re supporting the businesses that provide jobs for your friends and neighbors.
3. It helps the environment.
Local businesses tend to use less energy and resources than big box stores. They also generate less waste. And since they’re often located in downtown areas, shopping local can also reduce your carbon footprint by cutting down on transportation emissions.
4. It builds community.
Local businesses are usually owned by people who live in the community. They’re more likely to give back to local causes and sponsor community events. When you shop local, you’re investing in the community that you call home.
Where you shop is a choice you can make, and 100% it is your to make. But if you are in a community group that needs support, the more local businesses you support the more they are able to support local community groups.
Additionally, many local business donate a certain amount of their proceeds to local charities or they fundraising for local groups and often sponsor local community events. So, not only are you supporting the local economy, but also causes that may be important to you.
When people shop at large corporations, very little of that money actually stays in the community. In fact, most of it goes to shareholders who live in other parts of the country or even in other parts of the world. Corporations have a primary responsibility of driving shareholder value.
But when you shop local, the vast majority of the money you spend stays right here in town, benefiting everyone who lives and works here.
Plus, local businesses are more likely to hire people from the community, so you’re also supporting your friends and neighbors.
So the next time you need to buy something, think about shopping local first. It’s good for the community, and it’s good for you, too.
So, the next time you need a birthday card, some stationery, pens, pencils, magazines or even wonderful gifts, shop your local retail newsagency and see the difference in and value from supporting local retail businesses.
newsXpress helps local retailers, local retail newsagency businesses to transform into more valuably current retail experiences, offering more products people want today and doing this in a way that respects the local community.
In your local newsXpress retail; business you are bound to find plenty of Aussie made products, which help support local Aussie jobs.
The value a retailer derives from their business depends on decisions they make daily.
In a newsagency it can be challenging with some of the requirements relating to some of the products sold.
newsXpress helps local retail newsagents pours value in a range of ways from the big picture to the small and local – like at the individual product level.
The value of a product depends on the gross profit for that product, what you sell it for less what you paid for it. The real value of a product is the gross profit less the labour, and retail space costs for the product. The value of a product over a year is these things times the quantity of the product sold.
If you sell a gift for $250 with a GP% of 50%, you make $125.00. That’s the same as the GP you would make from around 380 newspapers, 85 magazines or 100 or so lottery tickets.
The challenge is to have the right higher price point items that sell at good volume to deliver more bankable margin dollars than you will make from lower margin legacy products.
This is where newsXpress helps its retail newsagent members grow profit, and through this cultivate greater value for their businesses, and from that flows enjoyment.
Can anyone sell items worth $250 or more? In our experience, yes!
But, value is about more than the ticket price of an item. Other factors:
– Buy price.
– Stock turn.
– Shrinkage.
– Differentiation.
newsXpress offers advice and support to local retail newsagents on these, helping you to maximise every value opportunity.
We know that if we help you maximise value at the transaction level, it plays our wonderfully when the time comes for you to sell your business.
We guide local retail newsagents to harvest greater value, profit, and thereby make your business worth more.
Our community of supporting and engaged preferred suppliers offer members better margin opportunities.
We shine a light on products that turn faster.
We have preferred suppliers who: provide exclusive product and who offer first to market opportunities.
Exclusive. Plenty of our preferred suppliers do not sell to other newsagents.
Our central billing program unlocks for you delayed billing terms, and more.
Our shop floor tactical training and guidance can help you achieve higher inventory turn rates, delivering a better return on investment, better return on floor space, and better return on labour.
This is key – buying a product at a deal price is good, but not the answer if that product does not sell in an efficient way. newsXpress helps you drive product turn efficiency.
Okay, this is important for any retailer and especially for local retail newsagents.
Enjoying your business helps you make better decisions. It also helps those with you in the business make better business decisions.
Through our newsXpress community you have friends you can have a laugh with, and folks you can trust to decompress with.
In our Zoom meetings and other contact points we, together, have a laugh.
The business itself becomes enjoyable when speed bumps are overcome and stormy weather guided away. Having access to your own business mentor can help achieve these things.
Success is enjoyable. We encourage and help to find success so you can feel the happiness it brings.
We understand, too, that enjoyment can be different for each of us. We are keen to know what enjoyment feels like for you, to make sure that we tap into enjoyment in a way that is meaningful to you.
Now, let’s turn to the how …
newsXpress helps local retail newsagents nurture success through opportunities you can leverage, often needing little or no capital investment. We share these in one of our regular (at least twice a week) member emails, or our regular member Zoom meetings.
Opportunities can be new suppliers, new products, in-store tactical changes, out of store marketing ideas. Often, they are early adopter opportunities that can help our members win before other retailers know about the opportunity.
We lay out for your consideration a pathway to a success. These are curated by business, considering local needs and owner situations.
Opportunities can be sales to people who will never visit your shop through any of several national #1 ranked consumer facing websites, and / or your own exclusive website, under a brand you choose.
newsXpress is a local retail newsagency marketing group. Our goal is to help our newsXpress member retail shops to be the best locally, the happiest, and the move valuable. What we offer and do is different business by business, depending on their needs, and focussed on their situation.
This is not a one size fits all approach, because local retail is not one size fits all. It’s what makes local retail so loved by folks in the local community.
newsXpress is not Newspower and Newspower is not newsXpress. While they may at first glance appear to be similar in their work for and support of newsagents, they are very different.
Newsagents looking for support for their business need to know for sure what they are looking for before they start to compare newsXpress and Newspower, they need to be sure of what matters to them.
Since we are newsXpress, we can speak to what we do, and this is what we will do here, rather than speculate as to what Newspower may not do. That research of the comparison between Newspower and newsXpress is something that only a newsagent can do for no one at Newspower understands what newsXpress offers and jo one at newsXpress understands what newspower offers.
newsXpress helps local newsagents run more enjoyable and valuable businesses. That’s our goal. It’s our focus every day, through every action.
With almost all of our newsXpress member newsagency businesses on the high street in the suburbs and in regional and rural Australia, our work is truly small business focussed.
We are a practical bunch, people with this local retail experience, which we bring to life when working with newsagents to help them grow more valuable and enjoyable businesses.
At newsXpress, we think every newsagent has the opportunity to make their own future.
It’s true, we all make our own future.
And, in the newsagency channel, in 2022, the opportunities for making a brighter future are terrific.
From what you sell to how you sell to when you sell to those you sell to … it’s all changing, which is terrific news because in change there is opportunity.
We can help. In fact, we’d love to help you.
How newsXpress helps is 100% up to you.
We help businesses that have limited or no capital grow in value. Our team of twelve retail professionals has a deep well of skills and experience.
For $175.00 a month, we offer value on which you can rely.
2022 is going well for many of newsXpress members.
Our free Thank You card promotion drove above-average card sales in our newsXpress newsagency businesses.
Our new EFTPOS deal is delivering excellent savings on EFTPOS fees.
Our support of Fight MND in our local newsagency shops has raised our community engagement profile.
Our Royal Australian Mint relationship has delivered exclusive opportunities for newsXpress newsagents, with more opportunities on the way.
Our card relay strategy is driving double-digit growth in card sales for newsXpress newsagents.
Our financially subsidised hosted 3-day supplier showroom visits in May were a massive hit!
Our US retail study tour is full with active retailers keen for experiencing local small business retail innovation.
Plus, we have added more preferred suppliers, delivered bonus margin and welcomed more new members to our community.
We’re loving 2022.
newsXpress believes that for each newsXpress newsagent, each retailer in our group, their future is theirs to make, to embrace, to celebrate.
Our pitch is backed by actionable items you can take. You can bank on it.
To us, the future is about value, the value of your business – what you make today and what you will make when you decide to sell.
Profit is the measurement of success, and key to value today and in the future.
The newsagency channel was created in the 1880s to distribute a magazine through the goldfields of Victoria. Some of the agency arrangements put in place then can be seen in business arrangements today.
While we understand and respect the history of the channel, the future for our shops is the future. It’s nothing like those goldfield days.
Making the most of the opportunities of the future is about what we talk about in this document.
What you sell. How you sell. When you sell. The customers you sell to. It’s all up for grabs, there for the taking. It starts with the narrative of your business, how you pitch yourself.
Our advice can include encouraging you to let go of some things that don’t make money and don’t, as Marie Kondo says, spark joy.
How far you go is 100% up to you. Our job is to pitch ideas and opportunities. What you do with them is up to you. Once you decide, we can help with practical steps.
While we understand that for plenty of newsagents, old-school products and services are valuable, their value is declining. Acting now can protect your business against those declines.
You’re not alone. We help you, work with you, hold your hand and encourage you – as much or as little as you want.
For each of us in business, what we achieve is up to us. Our future is about what we do today.
But back to the hypothetical question of how newsXpress compares to Newspower? Take your time. Do your own research. Look at the evidence, and decide which group is right for your needs.
Thank you to the 109 newsagents trading under a variety of shingles who provided sales data for this benchmark study. Your transparency will help many in our channel.
Newsagents, overall, had a good first half of 2022 when comparing trading figures with 2021. While the increases reported are modest, this is on the back of a better than good 2021 because of Covid.
Of particular interest are strong performances for gifts, magazines, books and toys.
The results show the local newsagency as a business with a strong traffic and revenue core. They also show opportunity considering the growth in some categories for some and not others.
While this latest newsagency sales benchmark study does not include shopping centre businesses as the sample group was too small, I note that they appear to have had a rough first half – begging a question about the status of the shopping centre setting.
After comparing data from the businesses in the benchmark dataset here are the averages for business performance measurement points and categories, comparing January through June 2022 with the same months in 2021:
The percentages are small, especially when you look at 2021 over 2019, however, that earlier comparison was comparing pre-Covid with Covid, which for high street newsagencies was massive.
Since the above results are averages, there are some considerably below and some considerably above.
In terms of type of business, the best performing newsagencies I see in the data are high street suburban followed by high street regional / rural.
It’s what is not in the above benchmark results that is interesting. There are some newsagents experimenting with success. Homewares, whitegoods, hardware and spectacles are all categories delivering growth in reports for a small number of participating businesses. I can see several going from $0 to a reasonable number in on introducing the category.
Some newsagents are quitting categories, too, like ink and toner, toys for some and some agency lines.
There is also interesting data within departments, like stationery and magazines:
In this benchmark dataset there are 2 newsagencies that introduced gifts, toys and plush to their businesses. In each case the three new categories accounted for more than 6% of total revenue for the six months. One business introduced trading cards part way through the six months and did more than $12,000 in revenue.
The shopper traffic challenge.
A big challenge I see in the benchmark data is shopper traffic.
Our channel was built on being a destination for papers, magazines, cards, lotteries, stationery and, back in the day, tobacco. We’d open the front door and people would come in. Newsagencies were businesses that benefited from the habit based shopper.
Those days are gone, more so in the city than the country, but they are gone.
We need to work harder at attracting shoppers, by stocking a broader range of habit based products and by showing guiding people to purchase, by educating them, enticing them. We do this by being smarter and more engaged retailers, and by doing these things inside and outside of our shops.
Every newsagency, every retail business, needs a new shopper traffic strategy, because if were are not growing the shopper pool, the future of our businesses is at risk.
Stock what could attract new shoppers, display it so passers-by can see it, pitch on social media.
If all we do with something new is put it on the shelf, we fail that new traffic opportunity.
The run home to Christmas
July through December are critical for any retailer. Maximise the opportunity:
I say all this because even though our channel is producing good results, we have plenty of competitor retailers who are energised to win business, and you don’t want them winning it from you.
The next six months matter because they set you up is you may want to sell next year, they put more money in your pocket and they help you enjoy your business more.
