newsXpress businesses have performed well in 2024 as revealed by the latest Newsagency sales benchmark study.
This latest analysis reveals a stark and growing divide between traditional and transformed newsagencies. The benchmark sales datasets paint a clear picture: traditional businesses are struggling, facing declining revenue and an increased risk of closure. Conversely, transformed and transforming businesses are demonstrating profitability and higher sale values.
The key differentiator lies in diversification. Transformed newsagencies have successfully expanded beyond the traditional “newsagency” model, often with minimal impact on customer perception. In fact, customer purchasing habits indicate strong support for these evolving businesses.
newsXpress businesses are more likely to have transformed thanks to encouragement from newsXpress since 2005.
Key Performance Indicators: A Comparative Snapshot
| Metric | Traditional Newsagencies | Transformed Newsagencies |
|---|---|---|
| Revenue | Down 3% | Up 5% |
| Transaction Count | Down 5% | Down 3% |
| Average Basket Value | Down 1% | Up 8% |
| Gift Revenue | Down 3% | Up 11% |
| Greeting Card Revenue | Down 4% | Up 3% |
| Stationery Revenue | Down 4% | Up 5% |
| Counter Impulse Sales | Down 12% | Up 15% |
| Online Revenue | $0 | Typically $75,000+ annually |
| Magazine Unit Sales | Down 12% | Down 7% |
| Newspaper Unit Sales | Down 13% | Down 8% |
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These figures highlight the fundamental differences in product offerings, pricing strategies, customer demographics, and overall business approach between the two groups.
While the data provides valuable insights, some of the most compelling examples are difficult to categorise. In the results we have observed newsagencies generating substantial revenue (approaching $100,000 annually) from coffee and related products, clothing, and high-end collectibles. The inconsistent categorisation of these segments across stores makes direct benchmarking challenging, but the overall trend is very clear to see.
Transforming the business away from traditional is profitable and vital.
Transformed newsagencies are even outperforming traditional businesses within core newsagency categories. This success isn’t driven by supplier support or increased compliance with traditional product demands. Instead, it stems from a more dynamic business environment, a positive in-store atmosphere, and a broader customer base.
Traditional suppliers would benefit from actively supporting newsagents in diversifying beyond the traditional shingle.
There is no doubt that transforming a traditional newsagency is hard work. Some do not embrace the opportunity because of concerns over costs. In me experience the costs are not great. The biggest challenge is making the decision to act as in doing this you have to leave tradition behind. There many who purchased newsagencies because of the ease of tradition.
The Path to Transformation
There’s no one-size-fits-all solution for success. Anyone claiming otherwise is mistaken. The first step is understanding your current position through data analysis. Next, develop a tailored plan and execute it with clarity, commitment, and by leveraging the experience of others.
newsXpress, a marketing group supporting newsagents, can assist in this process. We help newsagents navigate this transformation. For more information, contact Michael Elvey (not a salesperson, but a dedicated support team member) at help@newsxpress.com.au or 0400 331 055.
