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News

Newspaper kiosks may turn into comprehensive stores

In the Press Distributors Association’s (PDA) opinion, the newspaper kiosks may start selling digital content as well as include online order pick up points, payment terminals, and other services in the future. These changes will help make newspaper kiosks more profitable. Nowadays a chain of newspaper kiosks will take at least 10 years to pay for itself.

 

"According to experts, about 60% of newspaper and magazine circulations (excluding subscriptions and free publications) are sold through newspaper kiosks in Russia," - it says in the document drafted by the PDA. The document authors believe that Russia’s traditional newspaper kiosks should be turned into comprehensive multimedia stores that will provide a wide range of  socially important services such as payment terminal, info booth with visual and audio equipment, interactive map; will be able to distribute audio and video content via Bluetooth or Wi-Fi; as well as become online order pick up points, provide courier services, etc. These stores should be at least 10-12 sq m retail building that customers can enter; as well as have at least a thousand different titles of newspapers, magazines, books, etc.

"Currently, every region determines independently what percentage of all kiosk goods print media will constitute, and what percentage all other goods (as well as what kind of goods) will constitute. For example, in Moscow at least 50% of all kiosk goods should be periodicals and books. But we are urging the local authorities throughout the country to revise these obsolete regulations. Nowadays information is transmitted through a variety of different media. It is important to keep in mind that making these new era kiosks a reality will require significant investments." - the PDA Chairman, Alexander Oskin, said.

 

According to experts, a kiosk on average costs 500-600 thousand rubles, 750 thousand rubles including installation costs. According to economists, one will get return on his investment only if he has a chain of at least 65 kiosks. If the chain is smaller it will have to evade taxes to stay profitable.

 

The kiosk profitability can be increased through the expansion of  variety of consumer goods available at kiosks by including seasonal items as well as a wide range of services in demand.

 

"Particular services such as becoming a payment terminal and an online order pick up point might be a good idea but it is not going to change anything significantly," - the president of Euroset, Alexander Malis, pointed out.