And we should not discount the impact of the aggressive subion promotion we've undertaken over the past decade.Some of this damage may be self-inflicted.
On the retailer side,we estimate that there are approximately 30,000 fewer outlets being serviced for magazines today than in 1995.
Retailers have changed too.More checkout lanes.Less wait-time.Scanning.Bigger stores.Smaller stores.More specialized stores.A greater emphasis on efficiency and cost containment.
The nature of our competition has changed too.Particularly at the front-end,magazines are competing for space with beverage,candy and cigarette manufacturers-some pretty heavy-hitter marketers!
Pressure on the front end continues:with self-checkouts and portable scanners replacing traditional checkout lanes.These mean less waiting in line with nothing better to do than pick up a publication!
The greatest danger facing the magazine industry is complacency.Most mainstream retailers are at best ambivalent toward magazines.Many simply don't understand them,and strong supporters are the exception rather than the rule.
Continuing Changes in Retail Landscape
You can see from this chart where the strongest supporters are.They are the retailers that have gained greatest share over the past decade.
Mass merchants,which have grown from 9 to 16%of retail sales.
Bookstores,whose share has doubled from 6 to 12%.
Newsstands and terminals,which have grown from 9 to 12%
In contrast,Convenience stores have declined from 16%to 7%.And mom-and-pop outlets have almost disappeared.
Supermarkets remain our largest class of trade,steady at around 43%.
There is a good reason why the winners-think Barnes&Noble,Wal-Mart,Hudson News-have gained share.It is because they have paid more attention to the magazine category than their competitors.