Newsagents - Where to start with suppliers?

[IWYS]

A member of my family is now looking into opening a newsagents. The local newsagents closed down a couple of years ago due to sudden ill health, and they have now died. The shop is for rent so need a little advice.

We do not want to open as a chain and pay all assiciated fees of being a franchise, but we want to open as an independant. I know opening as a franchise would seem easier as they have all the contacts etc.

Opening as an independant where would we source our stock from?

Newspapers
Magazines
sweets
confectionary
drinks
crisps
lottery
stickers
etc

What other things need to be taken into account? The newsagents only needs to support one persons lifestyle and they are prepared to work the long/hard hours. I don't think there is much profits in newsagents anymore but he has a value added service for the community which will make most of his profits.

Really need your advice guys.....

Thanks

 

[khalid1]

Food and confectionary from local or specialist cash and carry's

Magazines from Menzies distribution

Lottery from Camelot I think

 

[deniser]

And cards are usually done on a sale and return basis where they stock your shelves for you regularly and change them according to season.

You can also get a local supplier for pre-packed sandwiches.

The newspapers are the trickiest bit I think so start with that. You don't have any say in what and how much to stock and it depends on who your competitors are as well.

 

[KidsBeeHappy]

Many newagents are chains/franchises but buying groups. Keystore is the buying group of JW Filshill, and through the buying group you also get discounted prices for non- C&C goods with other partner companies, as well as simplified invoicing and paying.

The keystore group for example used to get me milk at about 40% cheaper rates that dealing with wisemans directly.

 

[retailworld]

Theres quite a lot to think about - happy to advise on any aspect.

- Has your family member checked to see if there are enough potential customers?

- Have you had a look at rent/rents/utilities in the area?

- What state is the building/shop in? How much would you need to spend on new fixtures?

- Have they got deep pockets?

 

[Philip Hoyle]

It all depends on what other shops there are around it and their opening times. If there's an off-licence next door that's open the same hours, then no point in competing, but if there isn't or it doesn't open as many hours, then it may be a consideration.

Also get a cash machine and payzone point.

You didn't mention cigarettes and tobacco - I assume you forget to include it on your list rather than it being a conscious decision not to stock them - they're fundamental to a newsagents!

How about convenience foods. Especially fresh fruit & veg, fresh pre-packed meat and dairy products, milk, cheeses, bacon, sausages, etc. A lot of "corner shops" try to do foods, but fail because they stick to tins and packets and ignore the "cooler" cabinet but it's the chilled items that people want! (They can get corn flakes and beans from garages and everywhere else!)

The key is to get as many punters through the door as possible to buy other things. You need to avoid any excuse for them to go somewhere else.

How about a post office counter?

How about chemist and medicinal items (at least those you're allowed to sell!)

If you're on a main road or shopping parade with parking, don't forget the mid-morning and lunchtime trade from tradesmen and drivers, etc., for pies, sandwiches, etc - many will make a detour or drive a little further to get a quality snack or lunch rather than the standard boring offerings from garages and supermarkets.

 

[IWYS]

There is a bakery next door, and a hairdressers. There is already a post office in the village. The shop was a newsagents before so has all the fittings to start, could do with a fresh lick of paint. The rent is roughly £5,000 per year.

How much do you think you would need to start the newsagents? He has £10,000...would he need to borrow more? The rent can be paid every quater.

Would there be any other ideas for the shop. I think a newsagents but one that caters for morning (breakfast) and lunch would work well. There is a bakery next door which is always busy. Is there any ways he could compliment them and the other way round, for example get one of those jacket potatoe ovens as they dont have one.

There is also a newsletter distributed locally, could he take the delivery of this over for example? He has estate agency experience...could he incorporate this?

 

[IWYS]

He knows great contacts for fresh produce etc, but with a bakery next door would that be treading on their toes offering bacon rolls etc in the morning

 

[Philip Hoyle]

How much do you think you would need to start the newsagents? He has £10,000...would he need to borrow more? The rent can be paid every quater.

I think £10k may be a bit on the low side.

The newspaper distributors would want a deposit up front and then weekly payments for magazines stocks that he'll have to fund for a month or so until they're either sold or returned for credit, so that could amount to a couple of thousand easily.

A well stocked cigarette/tobacco stand can amount to another two or three thousand pounds easily.

Another thousand doesn't go far for a counter full of sweets and chocolates, then a few hundred for drinks, a few hundred for greetings cards/wrapping paper/stationery, etc.

Then a couple of thousand for equipment for food handling, i.e. fridge, freezer, hot cabinet, cooker, hygienic food prep area, extra hand-wash sink, etc.

An no doubt a thousand or two for tarting it up, i.e. decoration, new floor covering, replacement fittings/fridges, etc.

Then £1,250 for the first quarter rent in advance.

I think it can be done for £10k or so, but it will be tight and leaves nothing for his own living costs, staffing, etc., so it would have to hit the ground running with good turnover and profits from day one, which means it has to be fully stocked and open all hours straight away.

I don't think there'd be enough money in the pot for an off licence - stocking for which could easily be a few thousand which would definitely push it over the £10k.

Just a thought - where are people buying their news and mags from now if it's been closed a while? Is he sure that the customers will come back? If they're in the habit of buying elsewhere it will be a long and hard slog to get them to change their habits.