Perth Voice Interactive

DOZENS of Perth newsagents are selling up amid fierce competition from major retailers and the rise of online media.

Dozens of news/lotto shops are for sale at http://www.reiwa.com.au—more than 40 being sold by brokers at Piedmont Action in Northbridge.

The Voice stopped at five newsagancies along Beaufort Street this week and almost all owners were either selling their business, thinking about doing so or had just sold.

A Beaufort Street newsagent, who did not want to be named, says he’s planning on selling because of competition from major retailers such as Coles and Woolworths, which also sell magazines and newspapers.

He accuses the federal government of killing small business by allowing big retailers to trade for long hours and strangle the market.

Dismissed

He dismissed the much-praised budget tax break for small business, saying an early tax return on equipment costing up to $20,000 is no incentive to upgrade if traders don’t have the money to spend in the first place.

In Inglewood, Ryan’s Newsagency is one of two agencies for sale. Down near the city, Beaufort Newsagency—which doubles as a cafe—has just been sold and the business will change hands next month.

At Highgate Lottery and News, co-owner Simon Nguyen, 27, says his family thought about selling the Beaufort Street business after 15 years trading, partly because of online competition.

But instead, they’re planning an expansion to make it “more than just a basic newsagency”.

“It’ll be like a mini-supermarket,” Mr Nguyen says. “We’ve noticed a few flower shops around so we’ll get in a larger range of cards and gifts so it’s more of a one-stop shop.”

Several generations of the family have worked at the shop, and Mr Nguyen says it’s a fall-back plan for relatives who venture out.

Despite the apparent economic downturn experienced by other retailers, about 15 of Mr Nguyen’s customers came and went in the 10 minutes the Voice was there at noon.

“Everyone knows who we are,” he says. “People here, especially older people, care about shopping local.”

The Nguyen family has adapted to changing market trends: about 10 years ago, it expanded its cigarette range after noticing many smokers on the street.

Sarah Garvey from Australian Newsagency Federation’s WA branch says the Nguyen family is being smart by diversifying.

“The newsagents who are thriving have grown their gift/card and technology product areas,” she says.

“They are focussing more on special occasions and…presenting their traditional magazine, news and stationery offerings in more engaging ways to compete with Officeworks and others.”

Ms Garvey says while the economic climate and decline in newspapers and magazines is challenging, the best traders have convenient online services and are active on social media.

“Lottery is still a strong differentiator—yes online lottery sales are growing but good newsagents continue to grow this category in retail, too,” she says.

She says there’s been a “small” dip in the number of Perth newsagencies over the past five years.

Piedmont Action broker Tom Fung agrees, saying he has noticed a rise in newsagency sales in the past few years.

The decline of corner shops has also been widely reported on in the past few months.

by EMMIE DOWLING