THESE are testing times for the industry.
Falls in revenue for newspapers’ key advertiser segment, Retail, have hit quickly and fiercely. Top retailer Harvey Norman has this week reported a 31 percent slide in profit. Owner Gerry Harvey was on TV complaining about his margin on electronic goods, blaming that as a major issue. Though, of course, we all know his type of store uses good deals on flat-screen TVs to drive store traffic and sell other items at a better margin.
By Mark Hollands, CEO, PANPA
David Jones, another Australian retailer, has seen a 6.3 percent fall in sales – though it is not complaining about its margin. However, both these major retailers’ troubles underline the economic difficulties that our publishers are facing. And unfortunately, there are similar stories in Singapore and New Zealand.
It’s not like the old days when retailers were not the major part of a big metro’s revenue. The dollars used to come from classifieds, of course, and newspapers were never dependent on a small number of clients to be successful.