Transformed newsagencies thrive while others dive.

 

The Australian newsagency channel is at the crossroads with the sector evolving into two divisions – the ‘haves’ and the ‘have nots’.

 

The ‘haves’ are those businesses that have changed their business model to respond to the surge in digital connectivity, increased competition  and shifting consumer behaviours.

 

“Transformed newsagencies — those leaning into gifts, cards, specialty stationery and emerging lines — are growing revenue and basket value,’ Mark Fletcher,  CEO of newsagency marketing group newsXpress, said.

 

“The decline is concentrated in stores that have not changed their model,” he said.

 

Fletcher was responding to a recent report by research firm IBIS World that forecast industry revenue is expected to slump at an annualised 5.2 per cent over the five years through 2025-26, to $1.8 billion. This trend includes an anticipated drop of 3.4 per cent in the current year.

 

IBIS World also estimates the number of the newsagencies had slumped slightly to around 1800 in recent years.

 

However, Fletcher put the number of mainstream newsagencies still operating at around 2500.

 

“Store numbers have fallen from just under 5000 in 2000, but the surviving network of around 2500 is substantial and, in transformed stores especially, healthy,” he said.

 

IBIS World added: “Newsagencies have responded by diversifying their offerings, integrating non-traditional products, leveraging new technologies and exploring online sales channels to stay viable in an increasingly competitive market.”