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WELCOME
Suzanne Boyd, Editor-in-Chief, Zoomer Craig Sweetman, President, CRS media
Product/Consumer focus Magazine success story….. Leveraging the unique retail magazine sales environment.
- Anita Baldwinson, - Director, Retail Services/Marketing, TNG
The Marketplace Highlights from IAG (Industry Action Group) presentation at the 2017 MagNet conference IAG update
ANITA BALDWINSON, CARM ALFANO, CRAIG SWEETMAN, DEAN WALDRON, JERRY LYNCH
1 What’s Happening At Retail
Retail today is challenging at best
3 Books At Retail What’s working
4 Securing the
Future What’s already been accomplished
2 Magazines At Retail What place do print
magazines have at retail
5 Opportunities Continued work to ensure future
1 What’s Happening At Retail
Retail today is challenging at best
Bryan Pearson in
Forbes
What’s clear is the path of retail has
rarely been a straight one. The best
we can do for its future is to learn
by following in its footprints.
Retail Today Is Under Fire
Bricks & Mortar Retail Today
Challenging….
Sales
difficult &
moving
around
Across many
categories
Trips … if up, basket
size impacted
Trips... If down, then
they are down &
basket size down
Sales difficult
and moving around
Across classes of trade
Demographic Shifts
Non-majority populations
Major Macro Polarizers
• Source: Kantar Retail Analysis
Technology
New Generations
Geography
Urban Explosion
Incomes Diverge
Have/Have Nots
FACTIONAL FRAGMENTED FRACTURED The death of “average” in a splintered landscape
12.4 12.4
11.1 11.1 11.2 11.2 10.7
9.6 9.4 9.4
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Shopper Rationalization = Loyalty to “Chosen Fewer,” Unique
Retailers…
Average Number of Retailers
Shopped in Past Four Weeks* (among all primary household shoppers)
• * Inclusive of visits to stores and websites; averages are for Q1-Q3 of each year.
• Source: Kantar Retail ShopperScape®, January 2007-September 2016; kriq.com
Dispersion of Promo Opportunities
More, Smaller Points of Commerce
Threat
Recent Survey
Retail Execs
Now, a Firm Return to the Productivity
Loop…with an Added Focus: Baskets
“We’ve got to
win on baskets,
and the
economics are
not only in our
favor, but in the
customers’
behavior if they
shop a basket
at a time” -Doug McMillon,
October 2016
• Source: Company presentation, Kantar Retail analysis
17
Retailer Focus
Social Media
Consumer
Focus Differentiation
Digital Solutions
Watching Competition
Whole Store
Data Driven
SALES SALES
SALES
Profit - $$$ or %
Loyalty/Retention
Basket Size
Price Competitive
FREE UP CAPITAL
Traffic/Trips Long term focus
Control Costs SKU rationalization
Inventory | Labor | Space
Scale Matters
Traditional | New…. Aldi Lidl | DIGITAL | AMAZON
Fresh
On-line
2 Magazines At Retail What place do print magazines
have at retail
What place and or role do
print magazines have at
retail?
Did You Know…
Readers of All Ages Enjoy Print
Canadians Prefer Magazines
88% 92%
Feel that it is important that a magazine have
editorial content specifically
created for them
Agree that Canadian
magazines play a significant role in
informing Canadians about
each other
90%
Feel that U.S. titles don’t
effectively cover Canadian issues
Canadian Magazines Have Staying
Power
9 Years
1, 200
Total number of magazine Titles have stayed above
English Titles French Titles
Source: Mastheadonline; Magazines Canada; Statistics Canada; CARDonline
Some Awesome Retail Sales
Retailer 1
$40K In 1 week
Retailer 2
$199K In English
Mags
$425K
$550K Quebec Retailer
Just Some of the Titles That
Resonate
ME-Time
Print offers escape from hectic lives. Curl up & have
an experience with favourite
Collectable
Premium content that the customer will pay for and
save
Tactile & Addictive
Feels good beneath the fingertips and is an
immersive experience
Just Some of the Titles That
Resonate
Bookazines are up +25% $
High quality, not price sensitive, growing category
Sell Through Average 47%
Top-selling issue with +75% sell through in areas
+26% $, +8% Units
In 2017, so far, the higher retail price helping Star
Field Agent Consumer Survey June 2015
Sought After Connection to the
Consumer
read
cover physica
l
article
s interesting
pages
coupons picture
s
time
good
want
feel
something
interested
story look
recipes get
use
take
easier copy
interest
save keep
reading
able
price
articl
e
Simply Great Product
3 Books At Retail What’s Working
Stable Canadian Book Market
Reader Discovery
Where were you browsing/searching when you became aware of this book? (N=2,690) How Canadians Buy Books 2015, BookNet Canada (September 2016)
WHERE WERE YOU SEARCHING?
45% PHYSICAL
STORE
Why is it Working?
Seasonal Displays
Holiday Endcap Mother’s Day Endcap Seasonal Gondola
Move on New & Hot Categories
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 1 3 5 7 9 11 13 15
Retail Retail
Linear (Retail)
Adult Colouring
The “Suggested” Purchase
Read of the Month
Pick of the Month
Book of the Month
Showcase Pick
Media Tie Ins
Data and Replenishment
Demand
Supply
Transport
Inventory Planning Process Safety Stock
Reorder Level Order Up-to Level
Order Quantity
Service Level
Flexible Display Space
Topper Program Display What’s Hot Right Now
In the Midst of Every Crisis
Lies Great Opportunity
4 Securing the Future What’s already been accomplished
The Good News to Build On
Product that is extremely profitable to
retailers
1
2
3
5
We are still here despite
the loss in volume
There are still significant category
sales
A supply chain that has
wrenched out costs
Retailers looking for
help
4
Industry Initiatives
SBT FORMED IAG RDA
Inventory
Industry Action Group Group of industry participants from the supply chain. Publishers, Distributors,
Industry Association Leaders, Wholesalers, Consultants
Pass-Through RDA Simplified the system and highlighted retail discounts to retail more clearly.
Scan Based Trading Retailers no longer own the
inventory
5 Opportunities Continued work to ensure future
Remove
“Dead” from
vocabulary
84% More
engaged with ads
Digital will lose ad budgets (eventually)
New print start-ups +
digital publications
returning
Retail looking for profitability & consumer connection
Reader demand
is still strong
Raise Expectations
• Expect to grow not to fall
• Seize opportunities to do more
• Incorporate digital to help sell more print
• Engage & communicate with retail at all
levels
Communication is Key
Shopper Survey
Develop Resources
Promote
Brand-Spark Canadian Shopper Survey
Communication Tools
Tools for interacting individually & collectively
Newsstand Build upon momentum
A changing and evolving environment is creating
opportunities
Retail is changing
• Grow sales profitably • Complement the go-to market
strategy • Drive trips and or basket size • Energize Consumers
Demand for Categories
• Focus on consumer differentiation and loyalty
• Quality publications are exciting
Magazines Can Answer
Product/Consumer focus Books… How We Did It: The Subban Plan for Success In Hockey, School and Life.
Karl Subban, Author
Scholastic Canada Kathy Goncharenko, Vice President Trade Sales, Kristen Myhill, National Account Manager, Sara Labrie, National Account Manager, Scholastic Canada
Children’s Books Impact, Trend, Insights and Opportunities
Tom Worsley, President & General Manager, RS2
The Numbers What does the data tell us about the opportunities.
What’s Your Number
What’s Your Number ???
What’s Your Opportunity $$$
What’s Your Number ???
Magazines can generate some of the highest margins of any category that you carry in your stores.
What’s Your Opportunity $$$ By simply applying the known best practices to the magazine category, you can easily grow the sales and that means growing your margin dollars
Basic “best practices” Checkouts - optimum # of fixtures in store, optimum # of pockets on fixtures - right selection of titles for your locations - categories need to share point of sale space effectively - self scan /que line solutions Mainlines - location in store, size of fixture relative to store volume and traffic Other Displays - permanent promotion vehicles - short term in and out opportunities to support special events
Basic “best practices”
Merchandising - are displays blocked by floorstands, clip strips - are displays being dressed, corrected during the shopping day Sales Promotion - price discounts, coupons, multiple purchase discounts - incentives such as loyalty programs, tie-ins to other products Communication - Category Managers and National Account Managers need to be effectively engaged - are category trends and opportunities being communicated retailer magazine managers - are promotion or special opportunities being communicated to stores
What’s Your Number ???
Magazines can generate some of the highest margins of any category that you carry in your stores.
What’s Your Opportunity $$$ Large multi checkout retailers with both checkout and inline fixtures can easily generate margins of at least 35% and have the potential to grow that number up to as much as 40% when all of the revenue and cost reduction components are included.
Are Retailers including of all of the funds that the Magazine Category contributes when they calculate their magazine margins ?
Cover Price Discount
Volume Rebates
RDA (now included in Cover Price Discount)
Promotion Funds
Checkout Pocket Payments
Inventory Cost vs SBT
Merchandising Costs
THE CHALLENGE
Retail Personnel who are managing the magazine category and those of us who are calling on these people, need to ensure that all of the benefits that accrue to the retailer from our category are effectively communicated.
These amounts can be measured monetarily and should be included in the margins calculations.
Scott Gosse, Director, Information Technology, Coast to Coast Newsstand Services
The Numbers What does the data tell us about the opportunities.
Insights from the CTC Box Score\CTC Cognos system.
Matthew Holmes, CEO, Magazines Canada Craig Sweetman, President, CRS Media
Canadian Consumer & Retail New Canadian Retail & Consumer Insights.
Peter Olson, President, TNG Canada Bruce Sherbow, SR VP, Penny Press Matthew Holmes, CEO, Magazines Canada Tracey McKinley, Magazines & Circ Publishing Consultant
Now What ! Wrap Up Panel
Thank You
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