Why buy a newsagency

I owned a newsagency for 5 years to It was 5 years of my life I will never get back. It was a terribly hard slog. I worked it hard and did all the right things best practice regarding software Tower , stock levels, returns, product mix, giftware etc.

You really would have to be mad to buy a newsganecy in There will be no such thing in 5 years time. Lotto yes, magazines, maybe, printed news, definitely not. It is disappointing people who left the channel long ago feel the need to come back here and talk down what we are doing today based on what they did years ago.

There are many newsagents making good money their businesses, growing their businesses. While such stories may not suit the narrative of some, they are real. Anyone still thinks that newsagency is a bad investment when I am seeing large store-format newsagencies doing well in mid-size to major shopping malls including some in Westfield. My observation has been only in Queensland and why most people still thinking newsagency as traditional newsagency and cannot re-invent into a major retailer to compete in the differentiated market segment?

People who think a newsagency is not a good investment are not good retailers with their eyes on the horizon and an understanding of the commercial value of disruption.

Good retailers are not blinded or fooled by the potential of the current retail format. There are plenty of good newsagents retailers who have spotted opportunities and taken them. Investors know this. I do believe we are arriving at the point where newsagents who have even not started transitioning are worthless not just as newsagents but to any investor. Yesterday I spent time in a newsagency that I am considering making an offer on. Your email address will not be published.

Join the discussion. A customer may visit numerous times a week to get their next Lotto, Paper, Magazine or Greeting Card. There is constant National Advertising dedicated to product found at a Newsagency. This system maximizes sales whilst minimizing the risk of dead stock to the agent. Tobacco, Drink and Confectionery companies may also exchange dating stock if identified in an appropriate time frame by the agent.

If you were to buy a Coffee Shop in a shopping centre position, even a Franchised one , and there was a vacant tenancy beside that shop; there is little that may stop the landlord from letting the vacant tenancy to a rival Coffee Shop; likely halving your trade overnight. Newsagencies around Australia are battling hard with falling newspaper and magazine sales, with an IBISWorld industry report, Newsagencies in Australia , released in January this year, revealing incomes have fallen an average of 2.

Furthermore, the report blames decreasing income on "volatility in consumer sentiment and a growing preference by individuals to access products online". Combined with growth in internet connections and consumer adoption of new technology, this had led to "an increase in online access to news sources, a rise in mobile digital media and growth in direct subscriptions with publishers".

Hines and her husband bought three newsagencies in and have managed to increased revenue year-on-year. Newspaper and magazine sales are dropping whereas lotto ticket sales remain stable. But while both Worsley and Hines have kept their newsagencies afloat, one leading real estate agent, says most newsagencies aren't renewing their leases.

But David Negri, owner of the Clarendon Newsagency in Melbourne, believes newsagencies can survive by combining traditional sales with expanded product range.