The resilience of news agencies in the digital age
Sales from newsstands continue to decline as consumers opt for digital subscriptions from media outlets or even source their news for free.
No longer is there a queue of people waiting outside their corner news agency to pick up the Courier Mail. The ink faded on that image a long time ago.
But the outlook for news agencies remains healthy with many pivoting to become diverse, community-driven retail businesses that still deliver stability for owner-operators. The original model was built on newspapers, but the modern news agency now taps into multiple income streams, local loyalty and lifestyle flexibility.
At Bromley Real Estate, our business broker Peter McNeil is a specialist in news agency sales. Over the last two months alone, he’s tapped into the growing buyer market for the assets across Queensland to sell:
- Beerwah Newsagency;
- Nextra Cleveland Newsagency;
- Newsxpress Emerald;
- Newsxpress Gympie;
- Belmont News.
At Bromley Real Estate, we’ve closely watched the evolution of the news agency market over the last decade and helped sellers take advantage of this new era for the assets.
Let’s look closer at how new agencies have pivoted.
The new era of news agencies
Print newspaper sales continue to slide, falling about eight per cent year-on-year .
Rather than relying on the news stand to bring people in the door, a news agency is more likely to be defined by its lottery counter – they can turnover millions annually in Tatts – parcel service, gift shelves and snacks.
Despite disruption, the role these businesses play in their neighbourhoods has held strong. News agencies remain part of the fabric of diverse communities. Peter McNeil is currently managing the sale of news agencies situated in high streets such as Bulimba’s Oxford Street through to sub-regional shopping centres in Gladstone.
News agencies have remained relevant by diversifying. Lottery sales bring repeat visits, parcels make agencies indispensable in an online shopping economy, and greeting cards and gifts keep margins healthy. Customers still come in once or twice a week, but they are visiting for more than just their Sunday paper.
Many operators lean into higher-margin product lines – gifts, books, lifestyle items that don’t demand a 6am opening time. Staffing requirements are low, reducing overheads for owners.
Some people might be attracted to the nostalgia of newspapers when they buy a news agency – like a person who buys a record-store in the age of music streaming. But most people view the businesses as resilient, providing they can adapt to disruption.
If you’d like to know more about the future of news agencies, contact Bromley Real Estate’s business broker Peter McNeil today.