Supanews opened its first store in Aspley, in 1992. Customers flocked to the store, confirming that this new approach gave the public what they wanted. Supanews spread throughout the Brisbane CBD and selected suburban sites, becoming an integral part of the retail landscape for the Brisbane public.
Network of 50 stores and growing
The family chain grew quickly from those humble beginnings and by 2004, the Gaskins owned 23 stores throughout Queensland and NSW, 19 of which were newsagencies. The business, which has its head office in Brisbane, has grown to 50 stores across Queensland, New South Wales, ACT and Victoria.
Supanews is now the leading national retailer of newsagencies and the only organisation offering a full franchise business model for the newsagency industry.
Always looking to improve the business, the decision was made in late 2006 for Supanews to establish a joint venture with the A&R Whitcoulls Group to form Supanews Retail. The A&R Whitcoulls Group operates nearly 300 stores with brands such as Angus & Robertson (170 stores in Australia), Whitcoulls (70 stores in New Zealand), Calendar Club and more recently the Borders book store chain in New Zealand, Australia and Singapore.
New growth plan implemented
In 2008, a new growth plan was put in place which focused on the purchase of existing businesses. This ensured that Supanews could continue its growth strategy by selecting only the best newsagencies. The group set out to expand the network to 100 stores by the end of 2009 through acquisition and the development of greenfield sites. A 200 store target by 2010 has been set, which would see Supanews serve more than 150 million customers a year.
Key points of the new 2008 Supanews Growth Plan include:
1. Assured profit – Supanews selects quality newsagencies and conducts complete due diligence, ensuring the profit.
2. DonÕt pay too much – Supanews negotiates the purchase paying a commercial multiple of the verified profit.
3. Free shop-fit – Supanews takes over the store, partially shop-fits and implements its systems, spending between $80,000 and $250,000. (On average $170,000 per store is spent)
4. Value for money – Supanews franchises the newsagency to the successful candidate on the same multiple they initially paid for the store.
5. Ongoing support – Supanews provides full business support which includes dedicated operational field support, centralised accounts, marketing, systems and buying power.
6. Inordinate growth potential — The historical figures the business is sold on will not take into consideration potential growth in turnover and profit the business may sustain by bringing it up to the SupanewsÕ standards or for the implementation of new Supanews product lines.
The new model is certainly working, according to Gaskin. “Why would you run the risk of investing in an independent newsagency when you can have the security of a 300 store group.”
FRANCHISE INFORMATION
Company name: Supanews
Contact: John Watt
Phone: (07) 3221 0211
Email: john.watt@supanews.com.au
Website: www.supanews.com.au