EXCLUSIVE: Tool that cuts magazine wastage explores rollout to independent retailers

A magazine-management tool that cuts waste and increases sales in super­markets is looking at op­tions that could support local shops. The Rascal system is a joint venture with Smiths News that ties up with EPoS systems to base magazine unsold credits on sales rather than returns, cutting shrink to zero in return for an equivalent magazine margin reduction.

A recent report by Ras­cal into the implementa­tion of the tool, known as EPoS-based-returns (EBRs), in Waitrose last year cut shrink from a “six-figure” sum to zero, and saved the equivalent of 155 hours of staff time per store per week manag­ing the category. The tool also automati­cally updates prices, pre­venting undercharging at the counter.

Major cost savings

The report revealed these errors were costing a 200-strong forecourt chain in the UK more than £2,000 per year per store. The problem is only go­ing to get worse, accord­ing to Rascal. It claimed as cover prices increase, the cost of unreturned and/or stolen copies on retailers is rising, creating a “profitability squeeze” across the category.

Asked by Better Retailing why in­dependent retailers have not used the tool, despite facing the greatest risk, Rascal commercial direc­tor Jonty Edwards said while EBR is not suitable for independents, the company is now explor­ing widening availability for similar tools beyond the major players.

He explained: “We are speaking with EPoS companies and looking at integration options with the aim of open­ing up a number of sales, profit and efficiency op­portunities to independ­ent retailers. It’s important to be clear that the benefits for independents are not EBR-related. By Rascal team­ing up with EPoS provid­ers and helping with tighter data management, there is the potential for independents to gain ac­cess to a variety of tools that help drive profitabil­ity, such as sales-based replenishment or Rascal’s price file.

“The National Title File is a great and under-appreciated tool, but we believe the data we have on titles is more complete, and helps to avoid the types of price issues that cost stores money.”

Test

A test carried out in independent stores in Milton Keynes showed that small stores did not lose enough on wastage for the price of EBR to be worthwhile.

Edwards said other improvements could be made available to inde­pendent magazine stockists. He added: “The start point for any re­tailer to access efficiency and profitability tools, whether an independent or a major multiple grocer, is getting data manage­ment and data govern­ance tight.”