The Celebrations coin out now at newsXpress stores could be the perfect gift for saying thank you, I see you, I’m grateful for you, I celebrate you. It’s a modest yet heartwarming gift. One they will keep. And, it is easily posted.
Tag: retail help
newsXpress helps local newsagents transform their business
Whether your newsagency is traditional or you’ve already made some changes, knowing where you stand is absolutely vital. And that starts with your data. This is where newsXpress starts when it works with newsagents on transforming their businesses.
Understanding your business’s current position is the bedrock for what comes next. This means taking a good hard look at your business from all angles. Here’s what you need:
- An up-to-date profit and loss statement
- Current debtors and creditors reports
- A list of all outstanding money owed to the business, both formal and informal
- A stocktake 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 same period last year
Wanting change is one thing, but knowing your business’s current state and capacity for change is another. The information above will highlight immediate opportunities and your ability to invest in changes. This is the starting point for any business transformation I work on.
When reviewing this data, I suggest focusing on some quick wins to get the ball rolling. For example, if you’ve got $10,000 or more tied up in dead stock that’s already paid for, get rid of it! Freeing up that cash and space will do wonders for your business. Set up a clearance area and apply a consistent discount, like 50%.
While you’re tackling the dead stock, analyse the rest of your data to understand current performance and spot potential opportunities within your existing categories. This will give you a good direction for your initial steps.
As you dig into the data, jot down a list of ideas and action items. You might just uncover some previously overlooked opportunities.
Some retailers get advice from accountants or business consultants. While this can be helpful, make sure they have current, hands-on retail experience in your specific industry.
Remember, this is your business. You’re the one driving the change and transformation. Own the process!
Start by gathering the data, streamlining your business, and building a solid foundation. This will set you up for bigger and better things down the track.
More happy winners at local newsXpress shops
newsXpress businesses perform well in latest newsagency sales benchmark study
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.