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CALL MICHAEL PRESTO 718-706-2310 www.thenda.com • www.magsexpress.com • www.2mikesdelights.com Contents

5 • PBAA - The Periodical & Book Association of America 7 • Speakers and Conference Committee Members 15 • General Merchandise Category Sales Data and Trends by Mark Mechelse 17 • Conference Agenda 25 • Magazine Publishing CEOs and Magazine Distributing CEOs Discuss Major Issues at This Year’s Act 6 Experience by Linda Ruth 29 • Magazine Publishers and their Retailers on Distribution and Sales in the UK by Jim Bilton 34 • One on One Table Hosts

Conference Sponsors

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For more information contact Jim Miller, VP Retail Sales, Hearst Magazines, 212-649-2931 or [email protected]. The Voice of Periodical & Book Association of America, Inc. 481 Eighth Avenue, Suite 526, New York, NY 10001 the Newsstand 212-563-6502 • 212-563-4098 FAX • www.pbaa.net Industry Board of Directors Officers Chair President Since 1965 Jay Annis Will Michalopoulos Jannis Media Consultants Hearst Magazines [email protected] From the PBAA Chair [email protected] Executive Vice President Board Members Bob Bedor Welcome to the Hyatt Regency Greenwich and the Time Inc. Retail [email protected] 2016 Retail Conference. As I write this message, the David Alleger Clark Distribution Systems, Inc. Staff merger of PBAA and IPDA is pending finalization [email protected] with the state of New York. It will mean the formation Executive Director Jay Annis Richard Alleger of a new trade organization called MBR (Association Jannis Media Consultants [email protected] of Magazines and Books at Retail). This merger, [email protected] Associate Director Jose Cancio Bob Bedor which was approved by the membership of both [email protected] organizations, is just another indication of how Time Inc. Retail [email protected] General Counsel consolidation is changing the way we do business Yee Wah Chin and the necessity for all channels to work together. Allison Fleming [email protected] Hearst Magazines Certified Public Accountant More than a simple merger that was driven primarily [email protected] Peter B. Morse [email protected] John MacKethan out of financial needs, I see it as a final wake-up call Directory Listings Manager for the industry to figure out how we create excitement National Geographic [email protected] John Morthanos around the magazine category, drive consumers to the [email protected] stores and generate incremental sale. We cannot con- Bruce Sherbow Art Director Penny Publications Robert Romagnoli tinue to operate in the way we have and expect differ- [email protected] [email protected] ent results. We need to engage with our retailers to understand what motivates them and their customers. We also need all channel partners to have a stake in Just Released the game if we are to be successful. Publishers cannot PBAA’s 2016 Directory continue to burden every incremental cost to test and is available to Directory implement new ideas at retail. Everyone needs a seat advertisers and PBAA at the table and must contribute for all to be success- member companies, and ful moving into the future. I hope the formation of this for purchase by others. new organization is just the first step in helping the in- There is an Excel version, dustry meet these needs. Please consider participat- regularly updated on the ing as “all hands on deck” is the way forward. members only pages of the PBAA website: This retail conference has always been about educa- www.pbaa.net. tion and collaboration. It is the one time we have every channel participant together to discuss how we can in- fluence the single copy business. And I have always encouraged everyone to make the most of their time here. Our convention steering committee has worked extremely hard to put a conference program together that can challenge, educate, and motivate us to do whatever we can to drive our businesses in a positive direction. In that this is my last conference message as the Chairman of PBAA, I urge each of you to take re- sponsibility and work collaboratively to do what is best for the magazine category as a whole. Only through dedication and cooperation will this be possible. I wish you all much success in the future. Clockwise from top: Magazines at Retail Conference 2015, Will Michalopoulos | Chair, PBAA PBAA Canada, Annual Kick Off Party

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For more information contact Joseph Bertolino, V.P. Retail Sales, at 212.286.3849 or [email protected] Speakers and Conference Committee Members

Rob Ader’s career has “Industry Action Group”, consisting Learning. Professor Baron has ap- spanned over 25 years of leaders within the industry from peared extensively in the media, in- in the CPG space with the Publishing, Wholesale Agency, cluding interviews on Good Morning companies including Consulting, National Distributor and America, ABC News 20/20, CNN, The Time Warner Retail, Industry Association fields, that are Diane Rehm Show, All Things Con- Catalina Marketing, working together to find creative and sidered, the BBC, The New York Source Interlink and positive solutions for today’s News- Times, the Wall Street Journal, The Park City Group. Rob recently joined stand Industry. And, being a board Washington Post, The Chronicle of TNG and is focusing on front end member of the CMC “The Voice of Higher , The New Yorker, management and other strategic Audience Development”, gives her a Fortune, and Time. merchandising opportunities. slightly different perspective on this ever-changing, dynamic, challeng- Bob Bedor has spent Richard Alleger has ing, and yet exciting industry. 31 of his 38 years in successfully and prof- Conference Committee Member the publishing indus- itably managed major try with Time Inc. He retail, advertising, mar- Naomi S. Baron is began his career in keting and product Executive Director, 1978 as the Hartford clients. He drove team Center for Teaching, Sales Representative and division success Research and Learn- for Time Distribution Services, and across North America and Europe. ing World Languages over the next several years ad- Specialties include Supply Chain man- and Cultures. Profes- vanced through a variety of execu- agement, positive and successful client sor Baron is interested in language tive management positions at TDS. and partnership management, senior and technology, reading, the relation- After a brief stint at TV Guide and executive and board level strategic ship between speech and writing, the COMAG Marketing Group, Bob re- planning, new product development history of English, and higher educa- turned to Time Inc. as the COO of and launches, contracts and pricing, tion. A former Guggenheim Fellow, Warner Publisher Services in 2001. building successful sales teams, mar- Fulbright Fellow, and Visiting Scholar In 2004 TDS and WPS merged to be- keting and sales analytics, and working at the Stanford Center for Advanced come Time/Warner Retail, now Time with editors towards executing the best Study in the Behavioral Sciences, she Inc. Retail, at which time Bob as- covers possible. He has worked with has published eight books. Always sumed the role of Executive Vice ARAmark Management Training, Mar- On: Language in an Online and Mo- President, Client Marketing and vel Comics and Rodale, Inc. Richard is bile World won the English-Speaking Business Development, a position Executive Director of PBAA. Union’s Duke of Edinburgh English that he holds today. Bob and his Conference Committee Member Language Book Award for 2008. Her family reside in Blue Bell, PA. newest book, Words Onscreen: The Conference Committee Member Anita Baldwinson Fate of Reading in a Digital World, ap- has been with TNG for peared in 2015. Baron taught at Michael A. Clinton over 12 years and Brown University, Emory University, was named president, continues be an advo- and Southwestern University before marketing and pub- cate for print at retail. coming to AU, where she has served lishing director of In her current role as in the College of Arts and Sciences as Hearst Magazines in Director Retail Serv- associate dean for undergraduate af- June 2010. He is also ices & Marketing, Anita focuses on fairs, associate dean for curriculum a member of the using marketing and commun- and faculty development, chair of the Board of Directors of Hearst Corpo- ication tools to support TNG, Retail- Department of Language and Foreign ration. Formerly, Clinton was the ex- ers and the industry as a whole. Studies, and director of the TESOL ecutive vice president, chief mar- Along with these responsibilities, she Program. She was named University keting officer and publishing director practices the inbound marketing Honors Program Professor of the of Hearst Magazines, a position he methodology, fostering industry Year and received an AU Presidential had held since January 2001. His re- thought leadership in addition to Research Fellowship. Since 2011, she sponsibilities include overseeing the maintaining several websites. Anita has been executive director of the publishing side of Hearst titles: Car is honored to be a member of the Center for Teaching, Research, and and Driver, Cosmopolitan, Country

MAGAZINES AT RETAIL 7 JUNE 13 – 15, 2016 Living, Dr. Oz THE GOOD LIFE, ELLE, President of Sales for Bell Media, checkout solutions, for TNG’s clients. ELLE DECOR, Esquire, Food Network where she oversaw revenue genera- Michael started in the industry work- Magazine, , tion for Bell Media’s specialty televi- ing for Globe Marketing Services as a Harper's BAZAAR, HGTV Magazine, sion, digital, radio, brand partner- Marketing Director and later moved to , , O, The ships, Mix, and Astral Out-of-Home Murdoch Magazines where he quar- Oprah Magazine, , verticals. During her time at Bell terbacked checkout programs in , Road & Track, Seventeen, Media she restructured the Digital Canada for many retailers. In 1998 he Town&Country, Woman’s Day and and Specialty Television sales team was employed by Aaron Wire in a VERANDA. In addition, Clinton over- to drive growth and increased suc- sales position and was responsible for sees all print and digital, corporate cess within those platforms. At Astral designing and selling checkout pro- sales and marketing, brand develop- Radio, she initiated industry-wide grams to retailers. Aaron wire was ment and consumer marketing initia- education sessions preparing indus- then acquired by Source Interlink. tives for Hearst Magazines. try professionals for the launch of the Prior to joining TNG, Michael was the Personal People Meters (PPM) and Director of engineering, purchasing Prior to starting AIM the effects on radio measurement in and estimating for Source Interlink with Chairman Efrem Canada. Over her 15 years leading Companies for 12 years. He and his (Skip) Zimbalist in industry sales teams, her teams have innovative team developed checkout 2003, Andy Clurman received outstanding industry programs for retailers across the was Senior Vice Pres- awards and recognition including United States. Michael now works ident of Time4Media, multiple OBIE Awards, which recog- with the TNG sales and analytical a division of Time nize innovation and creativity in the teams to develop innovative sales-dri- Warner/AOL, serving as President outdoor advertising industry, interna- ven programs for all categories mer- and Publisher of Mountain Sports tionally. Additionally, Lesley has chandised at the checkout. From Media, the world’s leading winter served on numerous industry boards working with Retail clients, to the sports media company. Under his including her time as Chairman of analysis and recommendations of leadership, these divisions grew to the Board of Directors for the Radio front-end programs that optimize comprise of fifteen consumer and Marketing Bureau. She holds an sales, to the procurement of checkout trade magazines, an award-winning MBA from University of Phoenix and units and management of programs film and television production unit, an honors BA in Communications from concept to completion, Michael and category-leading Internet, book, from Queen's University. ensures programs see completion ef- video/DVD publishing, and event ficiently and as cost-effectively as marketing businesses. Clurman’s Tom Cox is Vice possible for all parties involved. career in publishing began at The President, Mass Mer- Vineyard Gazette newspaper. He chandise and Distrib- Laurie Del Negro has later joined Ziff Davis where he was utor Sales for PRH been a buyer of Sea- a sales representative, regional sales Adult print sales. He is sonal, Plush, and manager, marketing director and, fi- responsible for sales Publishing at HEB for nally, publisher of SKI and Skiing of Adult books into 11 years. Prior to that, Magazines. He is a graduate of Rut- Big Box retailers, Clubs, Grocery, she was a Buyer of gers College and holds an MBA from Drugstores, Airports and Military. Seasonal and Candy the University of Colorado. Andy Tom oversees sales into key Mass at PharMor for 2 years, and the serves as Chairman of the Board of Merchandise wholesalers and Na- Owner of Only A Dollar for 7 years. the Independent Magazine Publish- tional Distributors as well. Tom is cel- ers of America, a board member of ebrating his 25th year in the sales Jay Felts Jay Felts is Yankee Publishing, and is a Univer- department at Penguin Random President of Comag sity of Colorado Leeds School of House this year! Prior to PRH, Tom Marketing Group Business Mentor. Clurman lives in worked in the Buying Department of (CMG), where he leads Boulder, Colorado, with his wife, Baker & Taylor Books in Bridgewater, a team that is en- Claire, and three children. New Jersey. trusted with overseeing the retail sales/market- Leslie Conway cur- Michael Cullingham ing, predictive analytics and supply rently serves as the joined TNG in 2011 as chain logistics for many of publish- Executive Vice Presi- a Vice President of Re- ing’s most storied brands. Over his dent and General tail Support Services 15 years at CMG, he has previously Manager for IMPAX and checkout program served as EVP, Global Sales oversee- Media where she business development. ing retail sales/marketing, category oversees build out of Michael has over 20 management, wholesale/supply chain the retailer network, sales, and gen- years’ experience in engineering, pur- logistics and co-brand/shopper mar- eral operations for the company. Pre- chasing, sales and marketing, and ap- keting. As a 30-year industry execu- viously, Conway was the Senior Vice plies a strong expertise in data-driven tive, Jay has held various industry

MAGAZINES AT RETAIL 8 JUNE 13 – 15, 2016 leadership roles in representing the summa cum laude, from the F.W. Olin Ingrid Jakabcsin is a magazine category to the retail and Graduate School of Business at Bab- graduate of The Penn- wholesale trade, leading initiatives son College, Wellesley, MA. He also sylvania State Univer- while sitting on various industry trade holds an undergraduate degree from sity with a bachelor’s group’s boards and task forces. He is Churchill College, Cambridge Univer- degree in Marketing. currently serving as Board Chair of sity, Cambridge, England. She began in the peri- IPDA. Before joining CMG, Felts was odical business at SVP of The News Group overseeing John Griffin spent 24 Duval News Company in Jack- national retail chain marketing, he held years as President of sonville, Florida. She moved to Char- executive positions with Simon & major international lotte, NC three years later and took Schuster, accountable for North publishing companies the position of Managing Director of American retail sales, marketing and including P C World Distribution with Dixie News Com- distribution across several book and (1987-1990), Rodale, pany. After being purchased by the audio-book imprints and he held po- Inc, Magazine Group Jim Pattison Group, Ingrid was pro- sitions on the sales teams of The New (1990-2000), National Geographic moted to Vice President of Circula- York Times/Woman’s Magazine Group Publishing (2001-2010), and Time Inc tion for The News Group. Her office and Time Inc. Retail. News Group (2011). He began his ca- is now in Atlanta, where her role is reer as an editor and writer before Senior Vice President of Procure- Joshua Gary is Sen- spending seven years as a circulation ment and Distribution for TNG. ior Vice President at director supervising retail and direct MagNet, the news- response sales of magazines. He has A third generation stand's premier data supervised the launch of dozens of newsstand magazine and analytics organi- magazines, books and digital busi- publisher, you could zation. He has held nesses for adults and children in the say Buzz Kanter was various positions with- US and abroad, including Men’s born into the busi- in technology and circulation depart- Health in the US and over 30 foreign ness. His grandfather, ments over the past 15 years. He countries. He is currently active in the Al Kanter, created and has spent the past 8 years at Mag- New York start up community as a published Classics Illustrated comic Net building out technology solu- mentor at the NYU Berkley Entrepre- books, his parents, Bill and Penny tions to bring transparency and neurship program and the 92nd street Kanter, created Penny Press and credibility to newsstand data, and to Y. He has served on many industry, later bought Dell magazines. Buzz's help all members of the newsstand non- profit and conservation boards first job in the business was a field supply chain increase their produc- including the Audit Bureau of Circula- rep for in 1978. A tivity and profitability. He holds a tion, the Association of Magazine year later he joined Penny Press, bachelors degree and an MBA from Media (three years as Chairman), which was publishing 5 puzzle mag- the University of Florida. Workshop in Business Opportunity, azines. There is evidence Buzz Kan- Conference Committee Member The Lehigh Valley Conservancy, Trout ter was one of the first people to Unlimited, and The Theodore Roo- recognize category management, Bryan Gildenberg, a sevelt Conservation Partnership. differentiating crossword magazines world-renowned ex- from word searches or logic puzzles. pert in retail insight, is April Hudson has He realized the different sub cate- Kantar Retail’s Chief been with Indigo for gory of magazines sell differently by Knowledge Officer over three years, most location. In 1989 Buzz completed his and a member of the recently in the role of MBA while working full time at Penny company’s executive Associate Category Press. His thesis was creating TAM leadership team. He is responsible for Manager for Maga- Communications (which someone in the company’s analysis and insight, zines, Newspapers the publishing business said stood fueling Kantar Retail’s content with in- and Proprietary Books. April re- for "Throwing Away Money") and Old depth knowledge and intuitive skills ceived her Bachelor of Commerce Bike Journal, a classified ad maga- few can match. His perspective has degree at McGill University in Mon- zine for motorcycle collectors and re- been featured on broadcast media treal, before moving to Toronto to storers. In 1989 Buzz purchased the such as CNBC, Fox Business and the begin a career in corporate retail. two-year old American Iron Maga- BBC, and he is frequently cited in a She is an avid reader, with a special zine. The magazine was losing so range of U.S. and global business fondness for magazines, including much money Buzz figured out he publications. An award-winning Darling, Kinfolk, Cereal and The Gen- would be out of business if he did writer, Bryan has authored numerous tlewoman. April is eager to expand not at least achieve financial articles for Kantar Retail publications Indigo’s magazines business, with breakeven in 4 months. American and third-party periodicals such as hopes of attracting new customers Iron Magazine continues to grow and The Hub and GMA Forum. Bryan with refreshing and fully curated as- it is now the best selling motorcycle Gildenberg received his M.B.A., sortments. magazine on the newsstand. TAM

MAGAZINES AT RETAIL 9 JUNE 13 – 15, 2016 Communications currently publishes “Editor of the Year.” In 1998 he was and works closely with retailers and American Iron Magazine, American given the “International Editor of the national account managers to make Iron Garage, and various American Year Award” by the International Her- sure that magazines, as a category, Iron Specials. In addition, Buzz's ald Tribune. Most recently, Lafavore are never forgotten in the buyer’s team is seriously looking into the was Editorial Director at Maxim from mind. In a challenging retail envi- possible launch of a non-motorcycle 2012-2013. He held the same title ronment, Mike works tirelessly to magazine on the newsstand in 2017. at Meredith Publishing, overseeing ensure his clients achieve maxi- magazines with a combined paid cir- mum success. It is this track record Nancy Kunz is the culation of more than 14 million. He of outstanding industry engage- Vice President of Ad- currently resides in Allentown, PA. ment and initiative that made him vanced Analytics at the 2015 Newsstand Marketer of Time Inc Retail. Nancy Scott Largey began the Year. began her career with his career in the pub- Time in 1998 after lishing industry in Will Michalopoulos is completing her PhD in 1980 as a Field Sales senior director, retail statistics from Columbia University. Representative for sales at Hearst Maga- She was an integral part of a team Curtis Circulation zines. He is responsi- hired to construct an inventory man- Company in the New ble for sales and agement program which was new to York market. He joined Whittle Com- marketing for all 21 the company and unique to the in- munications based in Knoxville, TN consumer magazines dustry. As the head of Time Inc. in 1982 and, with Whittle's purchase and related special publications. He Retail’s Research and Analytics De- of Esquire Magazine, was appointed serves as the primary contact with partment Nancy has spent the last Esquire's Eastern Division Manager. the top retail chains developing 18 years developing and building a He returned to Curtis in 1990 as an checkout strategy, point of sale pro- library of findings related to inventory Account Executive and joined the motion, branding and shopper mar- management, cover studies, price Sales Department in 1992. He has keting programs. Prior to Hearst, he testing and consumer behavior. She been leading Curtis’ Field Sales De- was vice president, retail sales and resides in Maplewood, NJ with her partment since 2002. marketing at Filipacchi husband Glenn and their two fantas- Conference Committee Member Media U.S. Inc., and Will also held tic children Jack and Claire. positions at Ziff Davis Media, Busi- Jerry Lynch is presi- nessweek magazine, and Consumer Michael Lafavore is dent of the Inter- Reports. Will began his single copy Editorial Director for national Periodical career as a Marketing Representative Rodale Inc. In this role, Distributors Associa- for ARA Services – Magazine & Book Mike has editorial tion (IPDA). He joined Division, in Washington DC. oversight of the com- the association in Michalopoulos is currently the chair- pany’s largest brand, 2006 and works to ad- man of the board for PBAA and pre- Men’s Health and pro- vance the book and magazine cate- viously served as the organization’s vides guidance and input across the gories’ position in the retail president (1998 – 2004). company's portfolio of world class marketplace. Prior to joining IPDA, brands, which includes Men's Health, Lynch worked for 35 years with Weg- Holly Oakes is a 16 Women's Health, Prevention, Run- mans Food Markets, where he held a year veteran of Time ner's World, Rodale's Organic Life, variety of store and office positions, Inc., having held mul- and Bicycling. Lafavore returns to most recently as business group man- tiple positions within Rodale, where he served as Editor-in- ager, general merchandise. Today, Time Inc. Retail, the Chief of Men’s Health from 1998- through IPDA, he is engaged in a wide retail distribution and 2000, growing circulation from range of industry support and educa- promotion arm of 100,000 to more than 1.6 million (now tion activities both within the supply Time Inc. Her current role is Brand 1.8 million) and increased publishing chain and the retail community. Director for PEOPLE and Entertain- frequency from four to 10 times a Conference Committee Member ment Weekly magazines, a com- year. He also helped launch the com- bined $160M+ annual retail pany’s first 16 international editions, Mike Martin is a 20 business. One of her primary re- including in the U.K., France, Ger- year veteran of the sponsibilities is title lead for a multi- many, , South Africa, Mexico Canadian Magazine agency team tasked with creative and Russia. He joined Rodale in Industry, having worked execution, media buying and con- 1988, where he was one of Men’s in both the Distribu- sumer/shopper promotional experi- Health’s founding editors and as- tion and Marketing ences for a $25M multi-platform sisted in launching the Men’s Health aspects of this great media campaign for PEOPLE, a first website and branded books. In 1994, category. Mike manages several in the magazine industry. Holly also Advertising Age named Lafavore crucial aspects of CMMI's business works with the editorial team on ex-

MAGAZINES AT RETAIL 10 JUNE 13 – 15, 2016 tensive in market cover and edito- Michael Strawn is company’s portfolio of magazines rial testing in order to capitalize on Senior Director of and special interest publications. A emerging consumer trends. Holly is Consumer Insights & 26-year veteran of the magazine in- a graduate of Seton Hall University Analytics with Comag dustry, Michelle began her career in and resides in Edison, NJ with her Marketing Group. For subscription marketing before joining husband and four children. the past 10 years the Retail Sales Department in 1999. Michael has been a A graduate of Muhlenberg College William A. Romollino leader in data-driven decision-mak- with a Bachelors Degree in Commu- III is Vice President, ing, spear-heading collaborative ef- nications and a minor in accounting, Shopper Insights at forts with retailers, wholesalers and she resides in Allentown, Pennsyl- Time Inc Retail (TIR). publishers. He is a 20-year veteran vania with her husband and three Mr. Romollino joined of single-copy sales including posi- children. TIR in 1994 as a Re- tions within category management, Conference Committee Member search Associate. Over publisher circulation, consumer in- the past twenty years, Mr. Romollino sights and data analytics. Additional Conference has played a variety of roles in the Conference Committee Member Committee Members areas of Category Management, Sales and Research at TIR. Prior to Michelle Tauber is Jay Annis, Book and Magazine Pub- TIR, Mr. Romollino has worked in a Vice President, Retail lishing Consultant, President of PBAA. host of different industries including Sales at Rodale, Inc., pharmaceuticals/CPG, banking and an independent, happy, Melissa Boscariol, Director, Promo- management consulting. William healthy living com- tions, CMMI holds a MS in Management Informa- pany that publishes tion Systems from The New Jersey some of the best- Jose Cancio, Associate Director, Institute of Technology and a BA in known health and wellness lifestyle PBAA Economics from Rutgers University. brands, including Men's Health, Pre- As a passionate cyclist, William vention, Women's Health, Runner's Allison Fleming, Director, News- competes in races across the World, Bicycling, and Rodale’s Or- stand Operations, Hearst Magazines Northeast and Mid-Atlantic states ganic Life. Michelle is responsible for and is a former NJ State Champion marketing strategy, retail distribution Krifka Steffey, Marketing Manager, in Cyclocross. and financial performance across the Newsstand, Barnes & Noble

MAGAZINES AT RETAIL 11 JUNE 13 – 15, 2016

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by Mark Mechelse, Director of Research, Industry Insights & Communications, GMDC

he GMDC/Nielsen GM Hierarchy was cre- of data, 30 million SKUs, and 190 Food Channel Tated in a partnership between GMDC and Retailers are included — it’s reliable, accurate, and Nielsen as a tool to track and create visibility a “true view” of its importance. to important sales information by product in the • The Food Channel represents 16% of total GM General Merchandise categories. Publishing mate- Sales or $32 Billion in sales (see attached chart). rials are a major piece of GM in mass market. • With nearly 1/3 of all outlet sales coming from Throughout the course of the project more than GM, there’s little debate that GM Matters to retailers. 800 syndicated reports were built and Nielsen • GM represents a bottom-line contribution coded over 20 million UPCs making it possible to that’s significantly higher than other categories in consistently code and follow all GM products in the the food channel. While gross margin varies by GM grocery channel. category, the gross margin for GM as a whole is How does it work? generally nearly X2 higher than the gross margin of • The GM Hierarchy organizes and quantifies other categories in the store. GM category data in order to increase marketplace • While fresh food is getting all the attention, it is performance and provide better understanding of also under the heaviest price competition giving the GM categories. food retailers more and more squeezed margins. • There are 18 major categories identified and Since GM categories have some of the highest defined as 'Level 1' in the GM Hierarchy including - gross margins in the store, these categories pres- Apparel, Baby, Candy, Electronics & Personal ent some of the most significant opportunities for Entertainment and Publishing. retailers to fight back. • Each ‘Level 1' category is then divided further • The largest share of GM is in the Mass chan- down the scale based on its level of detail. nel. An expansion of GM in the food channel will in- • This organizational structure offers retailers crease wallet-share of GM and reduce leakage the ability to gauge channel activity and sales since the shopper in grocery is shopping more fre- trends in the GM industry while only having to quent due to consumption of fresh (a greater selec- search a single resource. tion of fresh is available in grocery VS mass). A topline of the most impactful points com- Greater visibility and innovative merchandising of ing out of the GMDC/Nielson GM Hierarchy are GM will capture more profit for the total store. below to help summarize why GM aisles are The Chart below highlights the significant share clearly a major part of the shopper experience of publishing business held by supermarkets and and household spend. drug. For more information and understanding of • The GM Hierarchy reports over 12,900 stores general merchandise go to www.gmdc.org.

MAGAZINES AT RETAIL 15 JUNE 13 – 15, 2016 GOLD SPONSOR There are new opportunities and solutions to activate consumers to purchase magazines and books at retail. Through education and innovation, the 2016 PBAA Retail Conference will demonstrate the continued strength of magazines and books and celebrate recent success stories of various supply channel participants. AGENDA Monday, June 13

11:00 am - 5:00 pm Conference Registration Regency Ballroom Foyer 11:00 am - 4:00 pm One On Ones Sun Court 12:15 pm - 1:30 pm Lunch Buffet Mead A, B, C 4:00 pm - 5:00 pm Workshops Innovate - POS/Using Scan Data to Drive Decisions Regency D Jerry Lynch, IPDA, Moderator Ingrid Jakabcsin, Senior VP of Procurement and Distribution, TNG Josh Gary, Senior Vice President, MagNet Scott Largey, Vice President Sales, Curtis Circulation Company Michelle Tauber, Vice President, Retail Sales, Rodale, Inc. Michael Strawn, Senior Director of Consumer Insights & Analytics, Comag Marketing Group Some in retail have pointed to Point of Sale (POS) or Scan data as the fix for all the challenges facing today’s market. This workshop will present and discuss how POS is being used today in the magazine category. The group will also look at new POS based opportunities yet to be realized and the challenges the industry faces to capture that full potential.

Innovate - Events/Technology Part 1 Regency E Anita Baldwinson, Director Retail Services/Marketing, TNG, Moderator Mike Martin, Director, Category Management, CMMI Lesley Conway, EVP/General Manager, Impax Media Innovation at Retail: Exciting concepts from digital signage at the checkout to innovative problem solving through creative fixturing and unique customer offerings. What is possible to what is being done now, to drive sales at retail.

6:00 pm - 8:00 pm Welcome Reception Regency Ballroom Foyer

MAGAZINES AT RETAIL 17 JUNE 13 – 15, 2016 Tuesday, June 14

6:30 am - 7:45 am Breakfast Mead A, B, C 7:00 am - 5:00 pm Registration Regency Ballroom Foyer 7:45 am - 11:30 am General Session Regency G, A, B, C Conference Welcome: Celebrate Coming Together and Opportunity Will Michalopoulos, Chair, PBAA and Jay Felts, Chair, IPDA 8:00 am - 8:45 am Introduction Bob Bedor, EVP, Time Inc Retail Covers Nancy Kunz, Vice President of Advanced Analytics, Time Inc. Retail Mike Lafavore, Editorial Director, Rodale Inc. Holly Oakes, Brand Director for PEOPLE and Entertainment Weekly Magazines, Time Inc. What best in class editors, circulators and research partners are doing to drive innovation and sales with award winning covers. 8:45 am - 9:45 am Introduction Jerry Lynch, President, IPDA What is Going On in Retail at the Highest Level of the Decision Tree? Bryan Gildenberg, Chief Knowledge Officer, Kantar Retail 9:45 am - 10:00am Break 10:00 am - 11:30am Introduction Richard Alleger, Executive Director, PBAA The Challenge to Innovate at Retail - “The CEO Keynote Panel and Discussion” John Griffin, former president of Rodale, Inc., National Geographic and the news division of Time Inc., Moderator Michael Clinton, President, Marketing & Publishing Director, Hearst Magazines Andy Clurman, President & CEO, Active Interest Media Buzz Kanter, CEO, Publisher, Editor-In-Chief, TAM Communications Inc. Our CEO Keynote panelists will address four key aspects of their businesses: • What are the 2 or 3 most important items on your plates now, on your desks and on your minds regarding your business? • When you consider print, what are the 2 or 3 most valuable and critical aspects of print for your businesses now? • When you consider circulation, what are the 2 or 3 most important items on your action list now? • Finally, considering the retail sales and reading customer, what is the #1 challenge you want this channel to meet and solve?

MAGAZINES AT RETAIL 18 JUNE 13 – 15, 2016 Tuesday, June 14 (continued)

11:35 am - 12:25 pm Workshops Innovate - POS/Using Scan Data to Drive Decisions Regency D Repeat of Monday’s Session! Jerry Lynch, IPDA, Moderator Ingrid Jakabcsin, Senior VP of Procurement and Distribution, TNG Josh Gary, Senior Vice President, MagNet Scott Largey, Vice President Sales, Curtis Circulation Company Michelle Tauber, Vice President, Retail Sales, Rodale, Inc. Michael Strawn, Senior Director of Consumer Insights & Analytics, Comag Marketing Group Some in retail have pointed to Point of Sale (POS) or Scan data as the fix for all the challenges facing today’s market. This workshop will present and discuss how POS is being used today in the magazine category. The group will also look at new POS based opportunities yet to be realized and the challenges the industry faces to capture that full potential.

Innovate - Events/Technology Part 2 Regency E Anita Baldwinson, Director Retail Services/Marketing, TNG, Moderator Rod Aders, Senior Director of Sales, TNG Michael Cullingham, Vice President, TNG/RS2 Lesley Conway, EVP/General Manager, Impax Media A deep dive into demand-driven front-end, exciting concepts from digital signage at the checkout, and mainline optimization based upon today’s diverse shopper, the needs of retailers and the entire supply chain are explored. What is possible to what is being done now, to drive sales at retail.

Education - Promoting the Category Regency F Bill Romollino, Vice President, Shopper Insights, Time Inc. Retail (TIR) . Consumer Impulse in Action: Conference attendees will experience a new ending to a traditional journey in this session featuring knowledge, insights and solutions from industry thought leaders and research projects to leverage front-end expertise from the power categories, displays, self-checkout technology and consumer mobile commerce applications. We will explore best practices in driving incremental impulse category growth through innovative product merchandising, marketing, technology, and operational efficiency. Retailers will leave this session with ideas on how to maximize checkout departmental profitability by increasing consumption and basket ring.

12:25 pm - 1:40 pm Lunch Mead A, B, C 12:25 pm - 5:50 pm One On Ones Sun Court 6:00 pm - 8:00 pm Industry Reception - Magazines & Books at Retail (MBR) Winfield

MAGAZINES AT RETAIL 19 JUNE 13 – 15, 2016 Wednesday, June 15

7:00 am - 8:15 am Breakfast Mead A, B, C 8:00 am - 10:15 am General Session Regency G, A, B, C Welcome Jay Annis, President, PBAA Agenda Introduction Richard Alleger on Print’s Positive Future 8:15 am - 8:35 am Presentation: Print & Digital: Changing Behaviors of Consumer Engagement Tom Cox, Vice President Mass and Distributor Sales, Random House 8:40 am - 9:20 am Presentation: Millennials and the Use of Print & Digital Dr. Naomi Baron, Professor, American University This session will explore how this powerful group are consuming print and digital and suggest what’s the upside for print products! A former Guggenheim Fellow, Fulbright Fellow, and Visiting Scholar at the Stanford Center for Advanced Study in the Behavioral Sciences, Dr. Baron has published eight books. 9:25 am - 10:00 am Wrap-Up Panel Jerry Lynch, President, IPDA, Moderator Jay Annis, President, PBAA Jay Felts, Chair, IPDA/Comag Marketing Group April Hudson, Associate Category Manager, Magazines, Newspapers & Publishing, Indigo Book & Music, Inc. Laurie Del Negro, Buyer, Seasonal, Plush, Publishing & Dollar Products, HEB Dan Sheehan, VP/General Manager, Ingram Content Group Hear participants from all parts of the supply chain react to the conference content with a focus on the opportunities to be realized. 10:15 pm - 3:00 pm One on Ones Sun Court 11:55 am - 1:10 pm Fly Away Lunch Mead A, B, C 3:00 pm Conference Close Magazines at Retail 2016 • Antitrust Policy

We will follow these guidelines in all of our discussions in Greenwich: • We may exchange best practices, trends and aggregated historical data. We may discuss methods and concepts that have worked and that haven’t worked, and why. We may exchange analytic tools that have been useful in our businesses. • We will NOT discuss what the industry should be collectively doing in the future, because each of us must make our market decisions independently, based on knowledge of market facts and trends, and our individ- ual circumstances. • We will NOT try to reach any type of consensus on what the industry, or any individual business, should do in the future, especially as to rates or prices, or areas of business to be active in. • We will NOT have any discussions related to allocating certain markets to one market participant or another, or to excluding one market participant or another from a market. • We will NOT exchange current data or future plans relating to any specific market participant in the areas of pricing, capacity levels, or costs, because doing so could be construed or interpreted as a collusive signal or activity. Those are the guidelines. Each of us must abide by them. We look forward to stimulating discussions.

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Magazine Publishing CEOs & Magazine Distributing CEOs discuss major issues at this year’s

by Linda Ruth, CEO of Publishing Management and Consulting

t is utterly necessary that we reimagine publishers are able to sell newsstand copies at “Ithe newsstand as a place where maga- about a third of the price as in the US— zines can live and thrive and grow,” $1.85—which results, in turn, in multiple pur- MagNet’s Gil Brechtel told the group of media chases by the customer, more revenue to the students and professionals at the recent ACT publisher, and a stronger supply channel. 6 conference. “Looking out at you, I see so The imbalance in revenue streams, cau- many people whose livelihood is based on a tioned Andy Clurman, CEO of Active Interest viable newsstand. What are we going to do to Media, puts publishers in a precarious place. keep it alive?” “When you build your circulation around a $5 The theme of ACT 6 was Celebrate Maga- subscription rate, a loss in advertising sales zines, Celebrate Print, and Brechtel was refer- can send a large-circulation mag out of busi- encing the theme of the launch panel, ness.” AIM is responding by adding value to “Reimagining the Newsstand.” the newsstand copies. He referenced a case I’ve rarely heard a panel so lively and filled with strong opinions and ideas; and one that “We are adding kept recurring was bluntly articulated by more value to our Hubert Boehle, President of Bauer, to the agreement of all panel members: “The sub- newsstand copies.” scription/newsstand ratio in the US is a disas- ter.” It’s a disaster, Boehle elaborated, for where the newsstand version of a publication publishers, a disaster for distributors, whole- included 16 additional pages not found in sub- salers, and retailers; and insofar as it under- scription copies. In another publication, the mines the viability of the newsstand and newsstand version included a mini cookbook, shoots the newsstand price into the strato- downloadable digitally by the subscriber but sphere, it’s not that great for the reader, either. available in print for the newsstand reader. Whereas in the US you can buy a year sub- Eric Hoffman, the CEO of Hoffman Media, scription for the price of a copy on the news- agreed. “The rate base game has been in trou- stand, in Germany the value proposition to the ble for some time,” he told the group. Maga- customer is roughly equivalent. As a result of zine audits, created to increase accountability, the consequent higher newsstand efficiencies, wind up incentivizing the wrong thing—the in-

MAGAZINES AT RETAIL 25 JUNE 13 – 15, 2016 ACT 6 “Reimagining the Newsstand” panel. L to R: David Parry of TNG, Hubert Boehle of Bauer Publishing, Eric Hoffman of Hoffman Media, Shawn Everson of Ingram Content Group, Andy Clurman of AIM, Gil Brechtel of MagNet - Moderator flation of circulation to increase rate base. “We level would be to take greater control of the need to change our messaging, and bring our product mix at checkout to encourage more advertisers along with us,” Hoffman said. His turns, more revenue, greater value to the retailer. company works with advertisers in delivering “Retailers are still on board,” he added. Publish- fewer readers, but ones that are more highly ers need to work with wholesalers through prod- qualified, more targeted to the advertiser’s mar- uct tie ins, cross promotions elsewhere in store ket, by dropping the circulation to a natural to help activate purchase across categories. level. In doing so, they deliver to their advertis- Shawn Everson, CCO of the Ingram Con- ers better readers at a better price. “Selling a tent Group, likened newsstand to a math four-year subscription for $15, in the name of equation. “No distributor can be in the store seven days,” he said. “To get seven day mer- “We need to change our chandising, you need to get the retailer on messaging, and bring board.” But to bring the retailer on board, there needs to be profit in the equation, and our advertisers with us.” the down-pricing of subscriptions is one of the elements that removes profit. One way of mass reach, is offensive to the talented editors, building profit back in, he suggested, might artists—even the advertisers who are paying be to repurpose the content. Instead of allow- for those readers. That needs to change.” ing it to disappear after 30 days, why not “It’s a false economy,” warned David Parry, combine it into specials, retrospectives, one- President and CEO of TNG. The low subscrip- shots, books? tion rates are creating a reaction at retail that Winding up, Brechtel referenced a MagNet sends the message to the store that they no study that validated the opinions expressed on longer need to maintain pockets for magazines. the panel. “We’ve established the correlation The continuity of display at the front end is lost, between a lower subscription price and falling and it sets off a downward spiral that drives newsstand sales. Now we need to shift more readers back to unprofitable, bargain-priced product sales from subscription to newsstand. subscriptions, which, in turn, further undermine For today’s publishers to succeed, we need to the supply channel. A response at the wholesale have them focus more on newsstand again.”

MAGAZINES AT RETAIL 26 JUNE 13 – 15, 2016 GOLD SPONSOR 61st Distripress Congress in Dubai October 3 - 6, 2016 Join us for the annual Distripress Congress taking place at the Dubai World Trade Centre in October. The Distripress Forum will be held on the morning of Monday 3 October and will focus on innovation in the supply chain. From Monday afternoon the EXPO and business meeting tables will be open. The welcome reception will be held on the evening of 3 October at the Armani Pavilion. Situated at the foot of the world’s tallest building, the Burj Khalifa, and with direct views of the world famous fountain display, this venue promises to deliver a stunning backdrop to our gathering. For more information on registration and Congress hotels please visit www.distripress.net

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by Jim Bilton, Managing Director, Wessenden Marketing & Brandlab Research

he newsstand is tough in every country Retail Challenges Taround the world. That is certainly the case in the UK where retail sales are still “The whole retail sector is in decline. You the dominant channel for consumer maga- simply cannot get away from that.” zines, accounting for around 75% of total sales volumes. Yet even here, the trend has been “Where do you start to describe what’s alarming with double digit percentage declines wrong with retail?....the rising cost of distri- bution, the ease of access for online content in volumes for both 2013 and 2014. Thankfully, for consumers, the wide availability of free this rate of fall has slowed in the last year to online content etc...” -7% in volume -4% in value. So, what does the UK industry make of all “The wholesale channel has been deskilled this? At the end of last year, Wessenden Mar- and publishers are not holding them account- keting polled the views of senior executives in able for what they are doing. Publishers are 61 publishing companies - all members of the not investing in copy targeting or in developing good circulation people in their distributors.” PPA in their annual Publishing Futures bench- marking project. This is what they told us. “There are many barriers to growing copy The first issue is that publishers are deeply sales, but the reduction of display space at divided when it comes to the retail sales chan- retail combined with the increasing cost of nel. At one extreme are those who see the promotional activity is the most significant. newsstand as a slow-motion car crash: they Both the trade and publishers need to work are shifting their activity and their budgets out more closely together to ensure that customers are actively engaged in maga- of retail and into subscriptions as fast as they zines and continue to see the benefit of can as they see little light at the end of the buying our products whether that is in print tunnel. At the other extreme are those who feel or digital formats.” that there is still real development potential in the newsstand, even though it may be tough “The relatively cheap cost of entry into our to squeeze that out. So, what does the UK in- sector will always interest speculative pub- dustry see as the big challenges and opportu- lishers. An overseas player not currently nities? First, the challenges... publishing in the UK would view our market as an opportunity. If that happens, our rev- enues will be under increased pressure.” Retail challenges The key issue is simply getting noticed in- “Magazine ranges are contracting in smaller store with ongoing magazine range reduc- retailers – convenience especially. Maga- tion and reducing in-store visibility being the zines are becoming more price-sensitive most quoted barriers. and we are unable to push up our cover In addition, the rising cost of maintaining prices as much as we would like or as is reasonable.” access to retail is seen as a major and growing

MAGAZINES AT RETAIL 29 JUNE 13 – 15, 2016 barrier to growth, although some see this more terms of listings fees and promotional costs. positively as a barrier to entry from new com- Another key factor is the increasing avail- petition. ability of free magazine content both in print What lies behind all this are the structural and online. This is undermining paid sales changes in retailing which are impacting on generally, but is also increasing the price sen- the magazine category: sitivity of established magazine products. · The decline of the High Street and the cor- There are some comments about declin- ner shop – WHSmith High St was mentioned ing service levels from wholesalers and dis- repeatedly as being both declining and difficult tributors as they cut costs within their own to deal with. operations. · The decline of the independent newsagent. · The growth of online and convenience / Retail opportunities top-up shopping and of the discounters (e.g. The key retail opportunity is felt to be in de- Aldi and Lidl). veloping closer, more proactive and creative · The increasing dominance (and volatility) relationships with retailers, especially: of the supermarkets who are seeing falling · Non-traditional retailers, such as the footfall and are becoming more demanding in discounters (Aldi and Lidl are building share)

Retail Opportunities

“Retail remains our core route to market even more product. We are also trying to develop though subscriptions are increasing. Our prior- new retail channels, such as discount retail.” ity list is...constant new product innovation – if we keep doing that, we will always have op- “Retail space is clearly under pressure. The portunities...non-traditional outlet expansion – key for retailers is profitability, so we will focus we have to be where our readers are... getting/ on pushing our biggest brands at retail and staying close to the major grocers...being defending the listings of our smaller brands more entrepreneurial overseas. whilst driving direct-to-consumer distribution in these more niche markets.” “Quality content will always be the main driver of sustained retail copy sales, backed up with “US distribution still holds potential for our ti- better and more impactful promotional activity.” tles. That is also making us look for openings in other countries.” “New store formats such as supermarket locals and convenience outlets will help us “We are launching more magazines, while keep up with changing consumer shopping continuing the investment in our existing prod- habits.” ucts. We are also spending more on marketing and retail promotions than we used to – we “The biggest opportunity in 2016 has to be the have to even though it is sometimes difficult to direct targeting of customers through till-point see a hard return on that investment.” conversation activity, retailer loyalty card schemes and loyalty incentives, replacing the “Disposable incomes are growing again. Peo- traditional promotional space at retail.” ple still love magazines, particularly specials and bookazines. We just have to be smarter “Our strategy is simple: increase cover prices, with more targeted customer marketing, like deliver great content, build share and launch using retailer loyalty schemes.”

MAGAZINES AT RETAIL 30 JUNE 13 – 15, 2016 and other outlets not supplied by the two azine ordering terminals, etc. The grumbles mainstream wholesalers. revolve around the basic attitudes they see · The grocers, especially in their conven- in the publishers themselves: retailers ques- ience outlets and using their loyalty mecha- tion just how committed the industry actu- nisms more actively. ally is to the retail channel, when all the · Progressive independent outlets. publisher talk seems to be about digital and There is a strong belief in the improving subscriptions. quality of the magazine product, both in terms of the editorial itself and how it is packaged. What does it all mean? In this regard, the flow of new launches needs There are some real differences between to be leveraged more effectively at retail. the UK and USA newsstands - this is mainly There is also an underlying view that the in terms of what magazine retailers look like whole supply chain could improve specific and the economic models lying behind the processes, such as: channels. Yet dig beneath the surface and · More targeted consumer promotions. there are also a number of fundamental · Optimized copy allocation / placement. similarities. UK and USA consumers are · A better understanding of price elasticity, very much like each other in terms of what particularly in driving up the premium end of they want from their magazine brands and the market (e.g. bookazines). how they want to buy them. Also, magazine There are still felt to be significant overseas publishers face identical challenges on opportunities which can be opened up by low- both side of the pond. For both the UK and cost and low-risk digital activity. the USA, the big issue is how to make the There is a growing sense that the magazine magazine space in retail work harder and category as a whole needs to be defended in more creatively - grabbing the attention of a terms of the amount of retail space dedicated distracted shopper more forcefully than we to it. That comes with a recognition that this do at the moment in a very noisy market- would require more investment and cross-in- place. That means thinking outside the box dustry co-operation, although both of these and questioning everything much more than would be difficult to achieve. we do rather than accepting the status quo; and that includes revisiting the big price The retail perspective differential between single copy and sub- In a separate project, Wessenden polls scriptions. the views of the top 15 retail buyers each Yet on both sides of the Atlantic, publishers year as to what they think about the maga- seem increasingly polarized as to what to do zine category. Here, there is a mix of very next. The retail pessimists are backing off from specific improvements they would like to the newsstand and focusing on subscriptions see and more general grumbles. Examples and digital. The retail optimists are investing of the specific improvements include bigger more money and thought into a channel and more impactful promotions, better which, for them, is simply too important to let Sales Based Replenishment processes, slide. Whether it is the optimists or the pes- smarter copy allocation, better on-shelf simists who win through will shape the whole availability, simplifying the overly complex magazine business in both the UK and USA. in-store processes, a need for in-store mag- And time is running out!

MAGAZINES AT RETAIL 31 JUNE 13 – 15, 2016

Reading is where it all begins.

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Congratulations to the PBAA and MPA – long-time champions of our global literacy mission. MagazineLiteracy.org partners with industry to inspire consumers to put the magazines and comics we love into the hands and hearts of at-risk readers. Maga- Share the magazine love. zines have the power to change the lives of readers and to change the world. Join us. One on One Table Hosts

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MAGAZINES AT RETAIL 34 JUNE 13 – 15, 2016 Beyond distribution Liberty News is in business to build relationships with the publishers we represent and the retail agents we service.

Making the time to selctively offer custom displays and programs that meet the needs of our clients, and the demands of the neighborhoods they serve.

Serving key metro area agents, specialty agents Nationwide and Key chain store retailers in the Northeast Region with nearly 150,000 newspapers daily and a wide selection of international magazines.

Key contacts:

Magazine Inquiries Newspaper Inquiries International Magazine Specialist Melissa Marlowe Myra Ward Justine Kawas [email protected] [email protected] [email protected]

Learn more about Liberty News Distributors at www.libertynewsdistributors.org