Newsagencies need to diversify or face closure, report suggests

The decline of traditional newspapers and magazines has been well documented - but what about the outlets that sell them?

A new report has found that newsagency owners are being forced to diversify what they sell in order to survive.

Industry suppliers say more than one newsagency is closing every day across the country.

The IBISWorld Industry report found that newsagency revenue was anticipated to fall 1.3 per cent over the next 12 months. 

By 2023, industry revenue was expected to decline by $100 million. 

IBISWorld Senior Industry Analyst Nathan Cloutman told SBS World News changes in discretionary income and online shopping habits have hit hard.

“Newsagencies are getting slightly squeezed out somewhat in Australia,” Mr Cloutman said.

“The ones likely to survive in the future would be ones that do manage to diversify their product ranges to offer a range of services and products.”

Australian Retailers Association Executive Director Russell Zimmerman said newsagents need to think outside the box.

“Newsagents need to look at their strengths, and whatever their strengths are they need to build on those,” Mr Zimmerman said.

“Once you’ve [got people] in store, what else can you sell them? That’s how you build your business.”

Between the two of them, brothers John and James Avery have more than 40 years’ experience in the newsagency industry, and now manage the Nextra Newsagency at Chatswood Chase on Sydney's North Shore.

John Avery has fond memories of “hauling papers up and down the highway” as a paper boy, but times have changed and so has his business.

The Avery's used to sell 2000 copies of The Women's Weekly magazine a month, now they say they're lucky if they clear 100.

“We constantly diversify our product range, we constantly review our space,” Mr Avery said.

“We use every square centimetre of our store to try and get the most revenue out of it.”

Like so many newsagencies, the Avery’s have started to focus on much more than traditional products like newspapers.

The gift range is extensive and changes weekly depending on trends.

At the moment,Father’s Day socks are in, a few weeks ago it was fidget spinners.

“We just keep trying different things constantly,” James Avery said.

“It they sell, we repeat them. If they don’t we clear them out and try something new.”

Lottery sales remain strong but are also forecast to decline in 2017-18, as more people gamble online.

The brothers are focusing on customer service and employing locals and say it's not quite closing time for their business. 

“Long term it's not rosy,” John Avery said.

“But it ain't going to go pear shaped.”