1. Independent Retailer Planning PPA Presentation Dean Russell July 2014

2. Contents The importance of Independent Retailers The changing shape of the Independent landscape Challenges of the Independent Sector Working with Independent Retailers Case Study & Results Summary

3. Importance of Independent retailers Source – COMAG Data Warehouse

4. The changing shape of the Independent landscape Independent universe reduced by 6% in 4 years Stores stocking 251-751+ titles reduced by 40% over the same period Stores stocking 0 to 250 titles has grown by 23% 7.5% of the total independent estate changed hands over the past 12 months Emergence of “clubs“ and symbol groups which has caused overlapping and confusion – 13,000 NFRN stores ( 3200 involved in NewsPro ) – 4,300 are part of a wholesale club – 4,800 are part of a symbol group

5. Challenges Of The Independent Sector The sheer number of stores and their diversity (More than 34,000) – Lack of central control – Difficult to tailor messages (48hr Rule) Pressure on the magazine category from other products – Growth of convenience store format – Symbol Groups – Franchising ( WHS local, One Stop ) Increase focus on ranging @ 14% of Independents now ranged via wholesale Early returns

6. Working with Independents Industry level activity PPA Joint Initiatives – PPA RMG Group Independents sub group – Just Ask – Making More Money from Magazines – Partwork Group Collaboration / engagement of supply chain partners Title specific approach Make Indies part of your annual retail plan Targeted Activity 1. Develop Existing Stockists 2. Optimising Stockists 3. Influence Display = Lower investment / better return

7. Case Study : Title X - Working with Independent retailers 1.Develop existing stockists Addressed sell outs Removed unnecessary supplies Visits Telephone calls Direct Mail Wholesale Flyer Wholesale newsletters 48 Hour Advice 2.Optimising stockists Top 500 retailers v competitors Sellers not just takers! 3.Influence Display 50 - Pre sell visit- Placed POS / Positioning advice 100 - Received a telephone call & communication pack via Royal Mail 250 - Wholesale 48hr notes 100 - Sent a communication pack via wholesale tote box

8. Results 534 Extra sales £2100 Extra RSV £600 Investment 47% retention #2, 34% #3 30% of sales from addressing sell outs No early returns from top 50

9. Summary Extremely important part of our business One size does not fit all Ranging presents challenges and opportunities The importance of investing time and money with Indies needs to be championed by all. “Targeted“ activity delivers return on investment Message, Communication, Results

10. Questions?