In the newsagent sector in the UK, trends continue to evolve quickly, with growth dependent upon geographic location and technological advancements. Both lifestyle changes and advances in technology are influencing consumers’ shopping preferences and habits. As a result, there is an increased demand for convenience that drives traditional stores like newsagents to offer services beyond common supplies like newspapers and magazines. These haven’t gone away – far from it; but newsagents are now trying to create an all-in-one offer for customers who increasingly have less time than before to spend on their shopping trips.
This has led many stores to invest in products like prepared food, hot drinks, and handmade cards in order to become something of a neighbourhood hub where customers can do their weekly shop as well as purchase anything from some toiletries to their morning coffee. Many also offer online services, while loyalty schemes seek to reward regulars who come back time after time. Newsagent trends are becoming more dynamic every day as they adapt to changing customer needs – one thing is certain: it’s going be interesting watching how this part of retail develops over the coming months and years
Newsagent market sector
As supermarkets and other outlets have diversified, traditional newsagents have been facing heightened competition over recent years. These outlets now sell the newsagent’s core products. There have been many closures of independently owned shops, and those remaining have had to diversify into other product lines and offer a high level of customer service.
During the past few years, there has been:
- The forecourts of petrol stations, supermarkets, and convenience stores provide strong competition
- Smoking bans, health warnings, and plain packaging have all contributed to a decline in cigarette smoking
- Increasing smuggling of tobacco products reduces demand for newsagents. As smokers look for cheaper tobacco products, high duty increases are increasing the demand for smuggled products
- In the UK, counterfeit tobacco products are on the rise. Retailers are more likely to sell counterfeit tobacco products unknowingly with plain packaging, according to HMRC
- Falling circulations and long-running newspaper price wars
- As younger audiences abandon print, online newspapers and news websites are growing in popularity
- A growing number of free newspapers, particularly in large cities, although several closed in 2015 due to declining circulations and advertising revenues
- Since the late 2000s, consumer magazine sales have declined
- In the mid-2010s, there was an increase in sales of snacks, impulse items, and take-away food items, but sweets and crisps are not as popular as they once were due to the trend towards healthy eating.
- Longer opening hours are becoming more common
- Competitive pressure, particularly from supermarkets, on prices
- As a result of new employment legislation, costs have increased
- Profitability is affected by an increase in newspaper carriage charges
- Shoplifting is on the rise, with some police forces not pursuing cases where less than £200 has been taken and others telling shopkeepers to contact the parents
- When shopkeepers challenge shoplifters, refuse to sell age-restricted items, or refuse to serve drunk people, they are increasingly confronted with violence and abuse
While well-run newsagents are still in high demand, they face fierce competition and many independents have had little choice but to introduce new products and services in order to remain competitive, such as lottery terminals, utility bill payment points, groceries, and so on.
You will have to decide on the following things:
- Your proposed business will have enough demand in your area to succeed. There may not be enough customers in rural areas if you plan to locate
- In an area that has recently been hit by a number of business closures, locals may shop at the cheapest supermarket if the economy is healthy.
- As a newsagent, you’ll be competing with supermarkets, c-stores, petrol stations and supermarkets looking to sell similar items
- You’ll be able to hire staff if your revenues are high enough. Otherwise, you’ll be working very long hours, seven days a week – many newsagents work 70 hours a week with no holidays.
Keeping up to date with the newsagency sector
Staying up to date with industry developments is easy when you join a trade association.
Newsagents are represented by the National Federation of Retail Newsagents (NFRN), which produces a lot of information for all those involved in the industry. For more information, please visit the NFRN website.
Newtrade’s Retail Newsagent journal features latest retail news and features. Subscription information is available on the Retail Newsagent website.
Facts and figures about magazine launches and circulations are produced by the Professional Publishers Association (PPA). PPA’s website has them available.
Read more: Legal issues for Newsagents
Trade shows
Attending a newsagency or convenience store exhibition will provide you with a lot of useful information. You can find information about trade shows on the Exhibitions UK website. The NEC Birmingham will be the host for the National Convenience Show this year, which is sure to provide an excellent opportunity for businesses specialised on convenience retail and supply. This event hosts industry professionals from multiple countries, with a variety of conferences, seminars and interactive workshops to help delegates explore and understand every aspect of convenience retailing.
Alongside this, there will be zone-by-zone exhibition displays across multiple categories – ranging from grocery, fresh food and technology – allowing attendees to make great connections with a range of reliable suppliers. Whether it’s networking or learning more about current trends in the industry – the NEC Birmingham will prove to be the place that provides ample opportunity to enhance your business knowledge.
Conclusion
According to recent reports, newsagents in the UK have seen a significant shift in sector trends over the last few decades. Many newsagents now sell an increasingly diverse range of goods including cards, gifts and stationery on top of their traditional offerings such as newspapers and magazines. Furthermore, due to the rise of online shopping, newsagents are having to adapt by offering services like click-and-collect – an increasingly popular option for online shoppers who want to minimize delivery costs or receive items quicker than they normally would through other more expensive delivery options. It is clear that newsagents in the UK have embraced current sector trends and have worked hard to position themselves as a viable alternative to national multiples or supermarket chains.
Lee Jones is a seasoned Business Finance Specialist with over two decades of invaluable experience in the financial sector. With a keen eye for market trends and a passion for helping businesses thrive, Lee has become a trusted advisor to countless organizations seeking to navigate the complexities of finance.