Covers Sell

Covers Sell

Misc/Other?

Posted by Scott On January - 22 - 2011

When looking at where (class of trade) the recent declines in magazine retail outlets occurred, MAGNET data shows that a big chunck fell out of the Convenience class of trade.  Over 6,800 Convenience stores vanished from the playing field, a 16% decline over the 3-year period under review.  Given the typical low-sell through efficiencies generated from these types of magazine outlets, the losses here are not necessarily tragic to many publishers, with the exception of adult magazines for example.

However, the loss of over 1,100 Bookstores (a 12% decline) which typically generate high sell-through efficiency, is more troublesome.

On a positive note, it’s great to see Grocery, Drug and Terminal all posting gains in dealers (+1,297) which more than offset the losses in bookstore dealers (-1,113) when combined.  These types of retailers of magazines have traditionally generated larger unit sales in aggregate and typically more efficiently than Convenience too.

Plus, when you add in the gains from Mass Merchandisers, SuperCenters, Newsstand and Military accounts (+2,026) the story improves yet again, as these types of stores sell product efficienctly, and often provide more retail space than Convenience.

The big whopping number is the vaguely titled Misc/Other category, which shed (-11,031) dealers, over a 29% decline from the 2008 tally.

Of the total of 15,868 dealers that have vanished since 2008, nearly 70% of them came from the Misc/Other bucket.  The devil is in the details.  While the top line number is clearly worrisome, when drilling down a modified picture begins to emerge.

Magazine retail outlets have decreased dramatically over the last several decades and that trend seems to be ongoing. Today there are just over 142,000 retailers, down 10% from 2008. There are several notable facts in this trend, with one of the most dramatic being the Supercenter COT with a 39% increase over the past two years. Another interesting point is the C-store COT. While representing over 25% of the total dealers, this COT only represents 5.3% of the retail dollars.

2010 Magazine Dealers by Class of Trade (COT)

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Scott Bullock’s Newsstand Cover Quiz Show is legendary in the industry. Using covers as the catalyst, this interactive and entertaining format is a light-hearted but hard-hitting spin on Packaging 101. Testing the cover savvy of magazine professionals across disciplines, the Quiz Show pits publishers against editors, circulators against art directors, retailers against wholesalers -- ultimately leading to new common ground in the quest for better covers. Scott is the Owner of Circ3, Smart Circulation Solutions, a circulation consultancy. www.circ3.com

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