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All the retail press sales’ problems

In accordance with the XXIII PDA Conference’s program the meeting of the section, named “Retail press distribution” took place in Turkey.

The participants discussed a range of issues related to the newspapers and magazines selling through a retail newsstands network. The talk turned to the future of newsstands, the ways of  profitability improving,  the extent of related products’ diversification, etc.

There is a negative trend in the classical print media market today. This is evidenced by decline in the number of sold newspapers and magazines copies and the rising cost of business support. Some new measures proposed by the Russian authorities can’t also enable to expect the financial stability of the distribution companies in 2013. For example, the planned increase in the minimum wage by 15% in retail and a ban on tobacco products and drugs advertising in the mass media, which will have a negative impact on the retail print media distribution’s profitability.

But all the participants were sure that there was a bright future to newsstands. And market players should do everything that is possible to make this future better.

It was also noted that the publishers’ prices rose slower than distributors’ prices. But distributors’ representatives explained that they had a lot of additional costs: rising rent and news vendors’ wage, needs to convert newsstands, etc. In addition, the retailers’ financial performances’ improving is possible only along with the number of sales increase.

In order to increase the newsstands’ profitability there were proposed to consider these options:

- to organize the around-the-clock newsstands work;

- to replace newsstands to the new models;

- to search for new publishing houses’ products.

At the end of the section the participants agreed that the range of goods expansion with the quality publishers and related products could have a positive impact on the distribution profitability.

Source: PDA