Tas: Nextra's new generation of newsagents

AAP General News (Australia)
08-21-2001
Tas: Nextra's new generation of newsagents

By Don Woolford

HOBART, Aug 21 AAP - A national newsagency group, which sees its "concept stores" as
the McDonald's of newsagents, expects to hasten changes in the structure of newspaper
deliveries.

Nexcorp Aust Ltd executive director Shane Griffin said today in Hobart, where franchise
holders are having their annual meeting, that the group was developing a new era in newsagents.

Brisbane-based Nexcorp is the umbrella company for Nextra Newsagents and Megabooks.

Mr Griffin said that from a 1994 start, it had become Australia's largest newsagency
group with 70 member-owned stores in suburban and regional centres in Queensland, NSW,
Victoria, Tasmania and the ACT.

Sales in 2000-01 topped $300 million for the first time.

The group planned to expand to Western Australia and South Australia and to have 200
members within three years.

Mr Griffin said traditional ``Mum and Dad'' newsagents that sold papers, magazines
and lotto tickets were becoming dinosaurs and the day of the newspaper boy had long gone.

Nextra newsagents were bigger, had a wider range of offerings, were brightly furnished and fun.

However, few of them delivered papers.

Mr Griffin said this was not the beginning of the end of home deliveries.

But there would be changes because deliveries were not profitable for the average business.

``I expect you will see consolidations to achieve economies of scale,'' he said.

The full Nexcorp concept comes with the addition of a Megabooks to the newsagent.

There are now 16, with six more to open in the next two months.

Mr Griffin said a Nextra-Megabooks complex also offered a copy centre and internet
cafe and may extend to videos and music.

The book side of the business carries new releases and major old releases, but specialises
in cheap remaindered books.

The complexes aren't cheap. The shop-fit alone for a recently opened Megabooks at Carlingford,
Sydney, cost $800,000.

Mr Griffin said McDonald's had revolutionised hamburger shops through large, bright
premises, efficient service and extras like children's playgrounds.

``It's a good analogy for what we're doing with newsagents,'' he said.

AAP dw/was/de

KEYWORD: NEWSAGENTS

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