“What kind of retail network do we need for newspapers and magazines so that we can adapt to changing shopper habits?”
Charlotte Michael Daniel Benjamin Watts Carruthers Kelleher White Agenda
▪ Changes in shopper habits ▪ Challenges in the retail network ▪ The current newspaper and magazine market ▪ Strengths of the market ▪ Ideas and changes ▪ Summary & Conclusion ▪ Questions Current Retail Network…
60.0% 57.1% Grocery Sector Sales by Channel -
50.2% 2012 vs 2017 50.0%
40.0%
2012 30.0% 24.3% 25.0% 2017
20.0%
10.6% 9.9% 10.0% 6.7% 7.6% 4.8% 3.9%
0.0% Supermarket Convenience Discounters Online Specialist & Other
Data: Mintel, 2017
Saturated Market
Decline in Space Sales Reduction
Challenges at retail for newspaper Promotional Increase in and online constraints magazines shopping
Limited Increased Publisher Costs Budgets Magazine RSV Variance YOY by Retailer 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% -15.0% -20.0%
-25.0%
Independent Tesco WHS High St WHS Travel Sainsbury's Co-op Morrisons Asda Waitrose MartinsMcColl MarksSpencer & Aldi Group News Spar Independent (ROI) Londis Stop One Stores Others
Retailer Data: April 2016-April 2017, Smiths News Strengths of the 1 The market generates Newspaper and £2.7billion per year Magazine Market 2 Certain retailers & sub- categories remain in growth 3 Established retail & supply chain network 4 Print remains vital for multimedia companies Recommended ▪ Cross/out of category Changes for the promotions and creative Newspaper and offers Magazine ▪ Specialist meal deals for Market convenience ▪ In store experience and magazine space/navigation ▪ Online opportunities Recommended Store specific ranging Changes for the • Customised ranges based Newspaper and on location, demographic Magazine and past sales Market • Increased revenue per square foot • Results to date are positive • Will require additional analysis and resource Conclusions
1 Changes in shopper habits means increased sales through discounters and convenience stores 2 The category faces multiple challenges which has lead to RSV decline YoY 3 Newspaper and Magazines remains a valuable, key category and focus for publishers 4 Recommendations Changes: creative promotions, a more ‘shoppable’ category, exploring online opportunities and store specific ranging Thank you for listening.
We welcome any questions.