Over the past decade the newsagent and convenience store channels have seen some significant changes to the sales mix. Government have brought about some of these with their Tobacco Control strategy and alcohol taxation measures. Technology and price has changed the way newspapers & magazines are delivered and how people access them. Even the National Lottery no longer brings instant riches to its retailers with a terminal as it has spread its network to more agents and online.
How are retailers going to replace the sales and profits from the declining product categories?
A series of questions follow from this:
- Who are your customers going to be tomorrow?
- What will they want to buy?
- How can you get them to buy more from you?
- How do you want them to behave?
- Who is your model customer?
So for starters, do you have products/categories that are delivering less sales than last year and the year before? Will you be following Jai Singh’s example and identify your poor sellers and find products to replace them that will sell to deliver profit from the space, money (and time) they use. Jai kept with his original categories but went for own brand price marked products that deliver a higher gross profit margin to protect his business when Asda arrived.
What are you do to replace your lost sales and profit?