Pandemic Publishing Roundtable: One Source Magazine Wholesale – Front End Merchandising With a Twist

Article by Linda Ruth

Last week, at the Publishing Pandemic Roundtable—Bo Sacks, Gemma Peckham, Joe Berger, Samir Husni, Sherin Pierce, and me— spent our hour with Gregg Mason of One Source, the distributor to major Natural Food specialty retailers, discussing the unique nature of the One Source checkout program, the changes that the pandemic has brought, and what we might anticipate for 2021. 

Joe: Can you give us some background on One Source and your role in the company? 

Gregg: One Source is a traditional direct distributor, in that it orders its product from publishers and ships to one location for pick and pack. We service primarily the natural food segment, with close to 2000 retailers nationwide. Our largest chain is Whole Foods, with 500 stores, followed by Sprouts with 365 locations. We also service a small sports retail segment.  One Source started small when the chains were small and grew along with them.  Our approach to magazine merchandising is unique—we don’t have mainlines. We are front-end focused with pockets at the checkout-only, and with non-logo’d pockets. Without logos, it allows dynamic movement of magazines which caters to the impulse buy of shoppers. We can sell more of what sells and the fixture presentation changes often.    When our retailers wanted a magazine program and looked at what traditional grocers had, they wanted something different, something fluid and dynamic. Something that would appeal to both new and returning customers; something that had the ability to drive high efficiencies. This fluid checkout was the solution. 

Bo: Does the fluidity you exercise with different titles in the pockets create a better sell through?

Gregg: Having the titles move around drives greater sales and sell through as they do stay in store but get shifted. Older product moves down, newer product comes in at the top of the rack. Titles with enough product at release for two pockets consolidate down to one over time. In this way we can extend shelf life for high-selling magazines. Our best-selling regular-frequency titles are all either bi-monthlies or quarterlies, we’re able to give them their full on-sale period.

Joe: Traditional retail stores don’t always follow their so-called “fixed” planograms; you can spend a lot of money participating and find you’re not in the program you paid for. In the One Source program you have opportunity to show if you’re capable of performing; though, on the other hand, these efficiencies can regulate a title out in the end. 

Gregg: Yes, it’s somewhat Darwinian; we look for not only high sell through but high sales per store. As draws come down, it’s hard to maintain the volume needed to stay in the stores, which can be frustrating to publishers. On the other hand, we don’t charge for the up-front placement; so if a title can perform, it will do well. For example, city titles can be the highest sellers in their home markets; so we created a city magazine placement at the front end.   Recently the efficiency rates have come down somewhat with the shift to high-priced, low-frequency bookazines. It’s amazing how the migration from regular frequency magazines to the bookazine model has dominated the business direction. With high-frequency mags, a normal order regulation system works; but with bookazines, different topics on same bipad can have widely different sales. For every single bookazine we order, we create an individual distribution for it, from the ground up.  

The Pandemic Publishing Roundtable from top left: Linda Ruth, Joe Berger, Gregg Mason (of One Source Distributing), Bo Sacks, Sherin Pierce, Gemma Peckham. Missing: Samir Husni.

Joe: Isn’t that considered bipad packing? 

Gregg: It would be in certain circumstances. What I’m referring to is a loose overarching editorial focus with different subjects under one brand. It’s literally a full-time job, managing these releases; but it’s necessary to garner volume sales.   

Joe: What changes did you see as a result of the pandemic? 

Gregg: We were lucky; our retailers stayed open. Sales were hit hard in the spring; since then it’s been a climb and partial recovery—creeping up, flattening out several times over. People have been gradually returning to more normal patterns. Our largest category is food and cooking; and those titles did well during the pandemic. We all cooked a lot more this year and turned to titles that can help. And publishers stuck with us. The children’s category, almost non-existent before the pandemic, took off like gangbusters. We found that the product couldn’t be too educational; it had to have a fun presentation.  We partnered with a publisher who collaborated with PBS kid shows—the product was just educational enough, just fun enough. Also the Highlights bookazines were hugely successful.  Shelter was a pleasant surprise. Domino took off, along with other shelter titles, primarily lower frequency titles and bookazines.  One area that has continued to lag are the city titles. They have not come back yet. Our stores are firstly suburban, secondly urban, and the urban stores are slower coming back. The commuting stores that cater to the people who work in the area have yet to come back; the residential area stores have.  

Joe: How are the indies and smaller chain stores doing? 

Gregg: We service Fresh Market and Natural Grocers, 160 stores each, they carry narrow edit, mostly just food, cooking, and health. Because they’re primarily suburban, they came back pretty well. And the independents have very loyal customer bases, so they also held up well. 

Sherin: Can you tell us a little more about Sprouts, what sells well? 

Gregg: They are located overwhelmingly in California and throughout the southwest. Their shoppers tend to be more price-sensitive, although certain higher-priced titles do very well, such as Willow and Sage at $14.95. Sprouts also tends to do very well with the vegetarian and Vegan titles. 

Sherin: What about getting their magazines on drop-down menus for online shopping? 

Gregg: We’re exploring and looking to move in that direction. 

Joe: MBR has started an initiative where they are talking to retailers about including magazines with electronic orders. You should be in that discussion. They’ve signed an agreement with an electronic platform, all the wholesalers should be at the table with this. 

Bo: Home delivery is not going away. We’ve retrained the consumer on how to shop, and that’s going to continue. Magazines need to be involved in this system. 

Gregg: Agreed, grocery was a last bastion of retail where people went to the store. Now many more people are getting delivery, and that won’t go away. And yet, although sales haven’t returned to where they were, they’re better than we expected, one year later. But you can’t make up for lost foot traffic.  

Joe: How do we get people back into the stores, or encourage them to find and buy the magazines? 

Gregg: We encourage our publishers to promote on their sites and social media platforms, to let them know we have their product, that it is available. In the stores, our biggest challenges are maintaining our pockets and keeping them open. The product that blocks the checkout are often at lower price points, lower profit. The migration to bookazines has helped show the financial impact of magazines, and what they bring to the retailer. 

Sherin: The Old Farmer’s Almanac has listings online of where to buy; we have robust PR when we go on sale; and we provide floor displays to appeal to consumers. 

Joe: What are you looking forward to in 2021? 

Gregg: We’re hoping to avoid a repetition of 2020’s peaks and valleys—and that the distribution of the vaccine will get people back in the stores. We’re prepared for an uptick in the city stores.   We’re poised to respond to changes as quickly as we can.

Pandemic Publishing Roundtable: “I Used to Be Somebody” – Planning Your Next Act With Carl Landau

By, Linda Ruth

Editor’s Note: The “Pandemic Publishing Roundtable” started a few weeks after the closing of most Barnes & Noble stores instigated a smattering of new articles proclaiming the end of that storied chain and the end of magazines at retail. While it is true that prior to the pandemic the future of single copy sales of magazines was at best a tenuous proposition, it’s death didn’t seem likely to happen any time soon. So once again, I was aggravated with the conventional wisdom of those who write about magazines. 

I reached out to my colleague, Linda Ruth and together we came up with the idea of starting a weekly roundtable discussion with other members of the publishing community. We could talk about almost anything. We could invite other publishers, distributors, consultants to come and talk with us. 

As we were all isolated from our places of work, the meetings became a great help this year in maintaining a feeling of connectedness to something, anything. 

The article below, is the write up my colleague, Linda Ruth wrote and was posted in the BoSacks newsletter, and on his website. Joe Berger January 19, 2021

Carl Landau, founder of Pickleball Media and publisher of the podcast and newsletter I Used to Be Somebody joined the Pandemic Roundtable—Joe Berger, Sherin Pierce, Samir Husni, Bo Sacks, Gemma Peckham, and me—to talk about what to do after you finish doing what you’ve been doing all this time.

Joe: You used to own and run the popular Niche Publishing Conference for the magazine industry, and sold your company a couple of years ago, so I’m very interested in hearing what you have to say about second and third acts. 

Carl: Yes, I sold Niche Publishing to Second Street Media a year and a half ago. They are a platform for contests—they bought us for our database of 18,000 publishers. I worked for them part time for a year to help with the transition—which was a peaceful one. The year gave me my first opportunity since my paper route when I was 14 to have a part time job. It was refreshing.   After that, my wife and I planned to travel. Then COVID hit. This left me thinking about what to do with my time, experience, and energy. And my mind turned to podcasting.

Eight years ago I did a podcast—Events: What Wakes You up at 3 am. It was a lot of fun, and garnered some interest, but I had a full time job, and really couldn’t sustain it. What I enjoyed most about it was building the audience.   And I love podcasts; I listen to four or five of them every day. You’ll find that media companies selling for a lot of money are podcast forward. Several that produce podcasts have sold for over 200 million. Now there are hundreds of thousands of podcasts, and smart companies looking for growth areas turn to them as another way to build audience. 

Sherin: Podcasts are great because they’re so portable. You can be out for a walk and learning about a subject. 

Joe: The podcasts that are successful—where does their money come from? The events they throw? Advertising? 

Carl: Sponsorship. Some podcasts have audiences of millions. That’s bigger than mainstream news. I just sold my first sponsorship, starting in March, after 12 episodes. My first weekly episode came out in October.   For me, the demographic that is most interesting is the Baby Boomers. There are 80 million of us. Ten thousand people a day turn 65. And that will continue another 5-6 years. For baby boomers, there are at least 25 podcasts about money, by financial advisors. I was more interested in what boomers might do for a second act.   Twenty years ago, you were done at sixty. Now continuing on is the rule, rather than the exception. 

Carl Landau of Pickleball Media – Source: https://pickleballmediahq.com

Linda: Do you think that’s because of the nature of the people turning sixty, or because Social Security has been pushed back? 

Carl: I think it’s a combination. We’re also living a lot longer. If you’re going to make it into your 80s, that’s a lot of post-retirement time on your hands. 

Bo: Does what happens vary by industry? In publishing we have a consistent pattern of getting rid of institutional memory. When you turn 65ish—you’re gone. You make too much money and you get to save the company’s bottom line. It is a historic pattern.  

Carl: I see that everywhere, in every industry. An amazing amount of wealth and intelligence is concentrated in this group—and yet it is mostly ignored by the media.  I Used to Be Somebody is for people who had successful careers and now want to do something entirely different. I like to get emotionally involved with them, find out who that person is, what they’ve done. That’s my format, and it’s how I engage my audience, which has grown in this short time to almost 1300 subscribers. 

Joe: Your company is called Pickleball Media. Should we be looking for a pickleball magazine to come out sometime soon? 

Carl: There is one. Pickleball is the fastest-growing sport in the US. Close to 5 million people play it, and no one’s heard of it! If it weren’t for pandemic, it was going to explode this year. This is what’s really helped me in this transition. Getting out of the familiar thing I’ve been doing for 20 years has energized me incredibly. I’ve been doing all this new stuff, podcasts, pickleball, and learning new things. It’s been really fun having this year to explore these opportunities. And that happens a lot with the people I interview. One big time lawyer took up photography and poetry. Those are the stories I explore in my podcast. It’s been really inspiring talking to these people. Having a podcast gives a forum you can talk to people you’d never have otherwise met. 

Linda: Could you distribute podcasts for other people? 

Carl: I wouldn’t, but there are lots of people who do it. There are so many opportunities, so many directions to go in. There is room for another event in the field, focusing on teaching people how to do podcasts, how to sell sponsorships. Right now I’m teaching older people how to listen to a podcast. So far I’ve taught 40 people, and it’s helped them a lot.   This is a field that costs next to nothing to get in. 

Sherin: What you need is good equipment and a good story. 

Carl: That’s right, and the equipment costs like nothing. You can get a good microphone for eighty dollars. I use Zencastr to record for $20 a month and it’s like I’m in the same room with my guest. Between the prep, recording, and editing, one episode takes 8 hours to put together.   I use Lidsyn for distribution and that’s $20 a month, and it gets you on Apple, Spotify, and 20 other platforms. They provide a report, too. I Used to Be Somebody is already in 60 countries. We have over 60 people in India alone that listen to my podcast.   Joe: How would somebody begin their second act?  

Carl: I’m the jump in the pool sort. My wife is more the ease into it sort. You could do it either way. But some people, if they jump in too soon, feel that they haven’t given themselves enough time to get a sense of what they could do. And a lot of times they end up doing the same thing they were doing—which is not what you want to end up doing.  Go within your network, talk to your friends. Ask them what they could envision you doing that you’re not doing, maybe haven’t considered. These are the kinds of things that come out in my interviews; it’s why interviewing is the most fun. It can take six or eight before you get comfortable. The way to bring it to life is, don’t worry so much about what your questions are, but make it a real conversation. 

Bo: It’s worth pointing out that you have a magic way of engaging. You did it in the Niche conferences, where you got people to engage with you and, most magically, got them to engage with each other. I saw that same methodology in the podcast.

  

Carl: Most of the people I interview have been interviewed dozens of times. I try to make it new, to humanize them with questions that they might not get as often. 

Joe: Is there a way to track if people listen to the ads? 

Carl: Not that I know of, and the download reports I get also don’t tell anything about the audience, except how many listened and where they’re from. That makes podcasts different from other media. What’s helped a lot is before I started the podcast I started the newsletter. You know your newsletter audience, and you drop the newsletter promoting each podcast.   Beyond that, audience growth tends to be word of mouth. Someone likes your podcast, and tells a friend about it, and the friend goes back and starts at episode one and listens on through. 

Sherin: AARP would be a huge audience. They have a ton of members in the demographic, many of whom would benefit. 

Joe: I can also refer you to a company called Get Set Up. It’s an interactive learning platform for adults 55 and above—taught by seniors, for seniors. 

Carl: Over half of aspiring entrepreneurs are Baby Boomers, and 1 in 5 people who remain working after age 65 are self-employed. It’s really different from what we’ve seen in previous generations.

Editor’s Note: You can download the Podcast, “I Used to Be Somebody” on Sticher, Apple and many other podcasting applications.

Pandemic Publishing Roundtable: Jerry Lynch of MBR (Magazines & Books at Retail)

“We have opportunities available to no-one else” Article by Linda Ruth

Editor’s Note: The “Pandemic Publishing Roundtable” started a few weeks after the closing of most Barnes & Noble stores instigated a smattering of new articles proclaiming the end of that storied chain and the end of magazines at retail. While it is true that prior to the pandemic the future of single copy sales of magazines was at best a tenuous proposition, it’s death didn’t seem likely to happen any time soon. So once again, I was aggravated with the conventional wisdom of those who write about magazines.

I reached out to my colleague, Linda Ruth and together we came up with the idea of starting a weekly roundtable discussion with other members of the publishing community. We could talk about almost anything. We could invite other publishers, distributors, consultants to come and talk with us.

As we were all isolated from our places of work, the meetings became a great help this year in maintaining a feeling of connectedness to something, anything.

The article below, is the write up my colleague, Linda Ruth wrote and has also been posted in the BoSacks newsletter, and on his website. Joe Berger December 21, 2020

Winding up 2020, and our year of, our group—Joe Berger, Samir Husni, Bo Sacks, Sherin Pierce, Gemma Peckham, and me—hosted Jerry Lynch, President of MBR (Magazines and Books at Retail) to talk about what we’ve come through, and what lies ahead. Jerry Lynch talked about his faith in our industry, the unique opportunities available to us through ecommerce—and a big announcement he is almost ready to make.

Joe: We’ve spent the year reacting to the challenges that COVID threw at us; it seems, in general, we do a lot of reacting. Is there a chance for us to not be such a reactive industry?

Jerry: The challenge is going to be figuring out where retail, as a result of dealing with Covid is going to go, where it will end up, and when.  Contrary to what you’d expect, we don’t fully know what’s going on. Consumer habits have changed, and some of those changes are going to stick, but perhaps not all of them. Some of the things that businesses put in place as the result of the pandemic might have to be unwound as consumers start to change again. And additional opportunities will arise.

Meanwhile, we’ve had some positive changes; mass market and grocery are the classes of trade that have done best for us.

Bo: People have to eat. Of all the necessary resources available to the public, grocery is paramount. We have to eat 3 times a day.

Sherin: The club stores, Sam’s and BJs have done well too, although Costco has stopped carrying magazines. Why is that? 

Jerry: Costco has a unique way of judging performance. Magazines don’t fit nicely into their way of operating, and the resulting metrics don’t allow our performance, in my opinion, to be judged properly.  The timing of their decision—we had hoped the removal of magazines was temporary–did bump up against COVID, as well. We have some ground to regain there. Some retailers removed checkout entirely, seeing it as a distraction at the front end when they needed to move customers through for safety reasons.

We’ve seen some good consumer feedback around the category, and that’s giving us an entry point back in. 

Bo: People trust magazines more than any other medium. 

Joe: What is the role MBR has in presenting magazines at retail? 

Jerry: We see our role as overarching. Our involvement would be along the lines of providing good research, helping craft the story. COVID set us back. 

Sherin: If a retailer walks away from magazines, as, for example, Home Depot did, do you strategize with wholesalers how to get them back on distribution?  

Jerry: We do try to come up with a concerted effort, but remember that it’s driven by retailers in terms of who they want to talk to. That’s primarily the wholesalers and larger publishers. Our role would be to help coordinate, to make sure we’re delivering the same key messages having to do with the benefit of the entire magazine category in the store. 

Sherin: The Old Farmer’s Almanac had a direct relationship with Home Depot before anyone else, then the wholesalers got involved and turned it into a category issue. When, after years, the whole chain was lost it was a big hit.

Jerry:  Many times a decision about the category comes from higher up,  executives other than the buyer of magazines.  Those decision-makers may not have enough information or the correct information which doesn’t allow for a good understanding of the category. Where we can We work with the merchant to ensure they have the right information to take to upper management to help make our case.

Bo: My experience in our industry says there is great need for improvement, training and experience. How savvy are the buyers?

Jerry: Mixed. Book chains, terminal operators, for example, are great; in other classes of trade where publications used to have a dedicated buyer the category may now be one of many that the buyer/merchant has responsibility for or be treated as an add-on. It’s difficult to gain the expertise when the time isn’t there

Joe: and it can change in the same chain from one buyer to the next.

Sherin: Having those relationships was easier when you could go and see the buyer. They used to be happy to talk to you. Once the wholesalers took over the relationships, more of the communication went through them; the buyers have been harder to talk to. Our wholesalers need to stand up for the category and educate the retailer why magazines are important; it’s not just feeding your stomach, you need to feed your head.

Jerry: Other factors come into play as well: the decrease in sales volume, the pressures of consolidation at retail. Full service by wholesalers is seen as a real plus for retailers. That has been around for many years and recently SBT was an added big benefit for many. However, that has also allowed some retailers to be less vested/engaged in the category We need to build a love/passion for the category that gets us over those humps.  That passion is built from the product itself, the actual content of a magazine.

Bo: The magazine business is in the communication business and as an industry, we’re horrible at communicating our own presence.

Jerry: Yes, we talk about our problems all day, yet we do less well talking about our successes. We have to talk to our retailers, with good data, in a retailer-friendly format, saying what magazines mean to our mutual customer. If we treated retailers the way we do advertisers we might get somewhere.

Samir: The impulse buy, going to the store to browse magazines, has dropped off with the worsening of placement and display of magazines. When I go into a store, I might find one lane open, ten lanes self-checkout. I tell them, if I wanted to do it myself I’d stay at home and order from Amazon.

Jerry: Labor at the front end is the largest expense line by far.

Last week’s roundtable included (clockwise from L-R): Bo Sacks, Joe Berger, Jerry Lynch, Samir Husni, Linda Ruth, Sherin Pierce.

Joe: One of the opportunities we’ve been talking about is ecommerce.

Jerry: The MBR has been working with a small group of members to get ecommerce off the ground for publishers. It’s way more complex than you’d think. It’s becoming a critical item for most retailers, but there is a direct relationship between the retailer’s ecommerce sophistication and where magazines fall as a priority. As they get better at ecommerce, their interest in our category grows, so we can gauge where to put our resources based on how far along the road the retailers have traveled. Different retailers also handle ecommerce differently: in some cases, they have an ecommerce division that we need to approach; in other cases, the buyer is our link to the ecommerce people; it’s different from chain to chain.

Bo: Over the next few years we’ll continue to commodify ecommerce, making it simpler and smoother. At the end of the day, we’ll solve it, it will get more easy than it is today.

Samir: The increase of ecommerce even from Hearst, Meredith, and others, selling their own subscriptions, is up 40% YOY. How closely are you working with ANC?

Jerry: The wholesalers will be key in this. We need to work with them to ensure that, if a store offers say, 100 magazines via their online portal, every one of those 100 magazines are available in the store for pickup. You can turn items on and off at a store level. But—going back to SBT—without tracking inventory by the store the retailer won’t know how many copies they have.

Joe: Except we do through O/R. And we have more than enough inventory.

Jerry: But in an SBT environment, that O/R information often isn’t transmitted to the retailer. Long term, especially as we expand the selection, we need to solve this, because we don’t want to get sideways in operation and disappoint a customer. That will hurt us with the consumer and the retailer.

Joe: There is one additional customer to keep in mind that we don’t want to disappoint, and that’s the publisher. Too many of them are turning away from this business now.

Sherin: To that point, there are some forward-looking buyers. Harris Teeter, for example, is testing the OFA on its e-commerce site.

Joe: I keep coming back to the question of why wholesalers are not working with publishers to get a site up inclusive of all magazines in that warehouse. We have a few indy retailers that have it, but if I were a magazine wholesaler today I would use my warehouse as a source of eCommerce, and I’d set up affiliate relations as well.

Jerry: ecommerce provides a huge opportunity to link the two sides of publishing back together. Everyone in publishing, from all aspects of publishing, from circulation, from advertising, is looking at it. And the opportunities are enormous. Take one example: suppose people could buy a subscription for Prevention on the retailer eCommerce site, and next time they were in the store they could pick up that copy or have it added to their click and collect the order. That’s convenient. That opportunity doesn’t exist anywhere else. It only exists at retail. 

Or, another example, imagine the possibilities of an eCommerce generated shopping list leading the consumer to the  Food and Wine magazine next to the in-store wine display. Again, that’s an opportunity that exists nowhere else.

Sherin: Our industry has not kept up with our customers, what they want and need. Some of our customers are now buying from Amazon, or from specialty chains because newsstand hasn’t been able to provide the support to keep up with the demand.

Jerry: E-commerce has not been a high priority for retailers. But that is changing and has changed. Now it is.

Sherin: Walmart carries every one of our publications through our trade distributor because they got tired of waiting for the newsstand.

Joe: We as a group know many publishers who want seats at this table. They want to participate and help and make this happen. So how to do this?

Jerry: I expect to be able to make an announcement soon, of a step we have taken in the direction of making this happen. Let’s get together in six weeks and talk about it then.

We Have Always Been at War with East Asia…And the Newsstand Has Always Been, Um, Challenging?

If I had made an entry in my diary every time someone told me in all seriousness that the single copy sales business was: Terrible, horrible, corrupt, inefficient, outdated, out of touch, wasteful, mobbed up, operated like the mafia, doomed, too busy ripping off publishers, retailers, wholesalers, consumers – to do a good job, that we should all be in jail for taking advantage of publishers…

… Then I would have a memoir considerably larger than a Brandon Sanderson novel.

Oathbringer-628rev-1-e1505943721525
That’s a mighty big book! (Source: BrandonSanderson.com

 

Nothing New Under the Sun

There is a verse in Ecclesiastes that says, “There is nothing new under the sun.” King Solomon wasn’t being a cranky old cynic when he wrote this. He was talking about the cycles of nature in life, not the rat race of the 21stcentury world. But while the complaints about the newsstand business are often the same year after year, the simple truth is that today’s newsstand sales business is not your fathers’ newsstand business. Or mine. And my father was in the newsstand business.

Last month industry guru and prophet Bo Sacks released two opinion pieces in his newsletter. One from former Ziff-Davis circulator Baird Davis and another from former consultant and industry leader John Harrington. Take a moment and check them out.

Both articles point out things that are very clear about the newsstand:

  • Sales are down dramatically
  • Sales for leading AAM audited titles are down even more
  • Retailers are cutting back on available space at the newsstand
  • There is continued consolidation at retail, wholesale and national distributor levels

I worked for Baird when I consulted for Ziff-Davis in its earlier print life. He is a good person and not someone I think of as gloomy or full of doom. In fact, I remember him as hard working and rather clear eyed. He succinctly points out the tremendous losses we have seen at the newsstand, especially with larger AAM audited titles. There is no denying the fact that a business that was generating about $5 billion in retail sales before the big crash in 2008 is now generating less than $2 billion. Harrington, who is also on the list of good people, is the former president of the Council for Periodical Distributors of America and a retired consultant. He points out that different participants in newsstand distribution have very different goals when it comes to profitability.

But We Knew This Already, Didn’t We?

Are industry leaders going to get together and “solve” the problem of the newsstand? Probably not because there are still too many competitors vying for space on the publishing side*. Moreover, all publishers, small, medium and large have a lot of other things to focus their attention on these days. Finally, it doesn’t seem like anything will happen without the seal of approval from the major wholesaler, TNG, or the largest national distributor, CoMag.

Captain Optimist Arrives

Earlier this week, fellow consultant John Morthanos tossed a bit of fuel on the fire in an opinion piece in response to Baird’s op-ed on Bo Sacks.  John makes the case that we should look beyond AAM numbers (I heartily agree). He cites the remarkable change in title rankings at chains like Barnes & Noble and Books A Million where traditional top ranked AAM audited titles (Think Cosmopolitan or House and Garden) have been supplanted with recent launches like Magnolia Journal.

He’s right. And as someone who is addicted to publishing stats, I’m endlessly fascinated by the report. But is that the point?

Single copy sales, the sales of print magazines at retail are down. Dramatically.

And,

Retail and wholesale consolidation has reduced a publisher’s ability to be profitable at the newsstand.

And,

If a segment of your business is not as profitable as it once was, and there is little chance of it returning to the same level of profitability, you tend to cut back your participation level and focus your attention on the parts of your business where you see opportunity.

It’s true that new titles continue to be launched on the newsstand. Some, like Magnolia Journal, Pioneer Woman, and the Centennial Media SIPs sell incredibly well. However, they don’t make up for the tremendous losses we see from former market leaders. How often can we rely on high level brand awareness to create winners at the newsstand?

New Industry Leaders

Let’s be realistic. Chains like Barnes & Noble and Books A Million are walled gardens. Their customers are actively looking for something to read – something in print. The B&N newsstand is well run and managed by a terrific magazine oriented staff. So is Books A Million. But that doesn’t mean we ignore the troubling signs that chains like Barnes & Noble have publicly experienced over the past few years.

Captain Skeptical?

It would be nice to think that every time a retailer chops a mainline in half or cuts 15 pockets from a check out that our wholesalers, national distributors and publisher quarterbacks rush in with the latest study from MBR and walk out with even more space. Half of it allocated to new, up and coming indie titles.

Maybe that does happen, sometimes. There are a lot of great people in our business and they do work hard to promote the category and maintain our space and viability.

But facts are facts and we’ve lost space. Despite some very visible, exciting and promising bright spots, sales are down overall.

From where I stand (I have a standing desk these days), these battles will continue to be hard-fought. We will never get away from the fact that store traffic is down. We have to acknowledge that there are a lot of distractions fighting for the public’s attention and money these days. Those of us who work in newsstand have to fight even harder to get the attention of the managers of magazine companies and the affiliated partners in the distribution chain because we are now a part of the magazine “media” business.

So, what to do? That’s easy.

Work hard. Vie for attention. Create your own promotions. Check your data. Prove your worth. Cooperate with others in the distribution chain.

Can you be both an optimist and a skeptic?

Yep.

*I am very much in favor of competition. Just in case you were wondering.