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WHY SHOULD YOU CARRY
MAGAZINES IN YOUR STORE?
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Magazines are a POWER CATEGORY at Retail generating
over $4.9 BILLION DOLLARS annually! Grab your share. Magazines have high consumer appeal
8 out of 10 households buy magazines!
Customers who are
frequent readers are:
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Industry
Resources
Periodical
and
Bookseller's
Association
of
America
Magazine Publishers
of
America |
Magazines drive return shopping trips
...plus generate incremental sales |
Independent Periodical
Distributors Association
FOLIO Magazine
Supermarket News
Progressive Grocer
Drug Store News
Audit Bureau of
Circulations
BPA Worldwide
The New Single Copy |
Magazines create demand for consumer products
sold in stores
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Grocery
Frontend Study by Dechert-Hampe & Co.
Magazines Generate
25% of Sales and Profits
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Magazines, along with
confectionery and beverages, contribute by far the largest
shares of sales and profits at supermarket checkouts, confirms
new “Front-End Focus” research.
The study, spanning more than 30 major product categories, was
sponsored by Mars Chocolate North America, Time/Warner Retail
Sales & Marketing, the Wm. Wrigley Jr. Company and The Coca-Cola
Company and conducted in partnership with six leading US grocery
retailers representing nearly 3,200 stores and 12% of U.S.
grocery volume.
The retailers provided
SKU-level data for more than 300 stores over a six-month period
ending in September 2008. Several provided shopper card data on
more than 1 million transactions. Checkout planograms were
collected, and more than 300 stores were audited at the lane
level to identify merchandising conditions. In addition,
in-store research on checkout attitudes and purchasing behavior
was conducted with 1,300 shoppers. The research was conducted
and analyzed by Dechert-Hampe & Co.
Source: Newsstand Forum - IPDA |
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Magazines have desirable category metrics
- High Margin
- High Turn
- Low Labor Investment
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- Magazines
Gross Margin 34%
Labor 9%
Contribution Margin 25%
- Total Store
Gross Margin 28%
Labor 11%
Contribution Margin 17%
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Retailer Best Practices
Can Close Opportunity Gap
Maximize Front End Sale
Potential
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Manage the front end as a
department, with a dedicated
manager.
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Base category buying and space
decisions on total profitability
(including both sales and
placement fees, combined with an
understanding of consumer wants
and needs.
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Focus on the three power
categories. Their combined share
of allocated space should
reflect their combined
approximately 80% share of
front-end sales and profits (75%
to 79% or more).
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Merchandise magazines and
confections in 100% of lanes.
Locate beverage coolers in at
least 80% of lanes (making sure
that these include express and
self-checkout lanes).
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Merchandise all three power
categories at self-checkouts to
drive maximum sales in these
lanes.
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Magazines and confections should
be included in over-the-belt
merchandising.
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Indexed against sales
performance per $1 million of
ACV or total-store sales, total
checkout sales are maximized
when over-the-belt merchandising
includes "some" gum/mints (index
103) and lowest (index 96)
with "all/most" gum/mints over
the belt.
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Allocate at least 24% of
checkout space to magazines.
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Maximize magazine presence
through lane end caps, as well
as within lanes, to encourage
the browsing that maximizes this
category’s sales.
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Make sure that top-selling
magazine titles are available on
key lanes. According to the
study, it is more important to
carry the right titles than to
have a large number of titles at
the checkout.
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Provide moderate space for
general merchandise and HBC
products. Remember that most of
these items are need-driven, and
that many are also located
elsewhere in the store.
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Retail Demographic Market Segment
Reviews
by
Magazine Publishers of America
http//www.magazine.org |
Maximizing Retail
Profits with Magazines
December 15, 2007
A great guide for supermarket and mass market retailers to utilize
as it highlights the importance of magazines’ metrics and 10 top
reasons to carry magazines in the store, such as magazine purchasers
spend more money per visit and how magazines enhance and improve the
shopping experience.
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Click image to download document
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African American/Black
Profile
May 5, 2008
The newly updated African-American/Black
Market Profile provides you and your advertisers with valuable data to
better target the increasingly diverse U.S. population.
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Click image to download document
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Hispanic/Latino Market Profile
March 5, 2007
The Hispanic/Latino Market Profile
provides insights on this expanding market, offering an overview of
Hispanic/Latino geographic
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Click image to download document
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Asian-American
Market Profile
June
2, 2006
This profile addresses the impact of Asian Americans, the fastest
growing ethnic group in America. The Asian-American population,
which currently exceeds 11 million, is expected to more than triple to
34 million in the next 50 years. |
Click image to download document
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Teen Market
Profile
May 3, 2005
This Teen Market Profile is designed
to help marketers understand and connect with Teens effectively. It
includes a Teen market overview, an examination of the media habits
of Teens, and evidence about how magazines reach, connect, and
influence Teens and their purchase decisions.
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Click image to download document |
