The first quarter 2017 results are in from MagNet (the US based Data Clearinghouse).
They report that newsstand unit sales in Canada were down 12.6%. In the USA sales were down 13.5%.
Sell-Thru Efficiency in Canada was 28.7%, compared to 31.2% last year. In the USA Sell-Thru was just 23.8%, compared to 26.2%.
Part of the decline can be attributed to the fact that draws have been cut in both Canada and the USA. In Canada, draws were cut by 5%, while in the USA draws were cut by 4.9%. This “culture of cutting” used to be frowned upon. “Cut the draw = Cut the sale” was the rule of thumb.
Thanks to SIP’s and other cover price hikes, revenues were not down as much as units were, with Canada posting a decline of 6.3% and the USA down 9.2%.
