INDUSTRY INSIGHTS

Q3 2016 VS 2015 NEWSSTAND SALES OVERVIEW

On the surface, the Q3 2016 sales results are somewhat concerning. As we review the "top level" results, we may have experienced the lowest sell through efficiency in recent history. The Q3 sell through came in at 25.1%, with the US actually finishing at 24.7% and Canada at 28.8%. The Q3 sell through is 1.5 points below the YOY results. The trend continues to provide positive results for the "book-a-zine" market, but the mass titles continue to struggle to find traction. 

In our review of title level results, we see that the titles in the sales rank of 101 - 500 experienced a decline of only 2.5% in units. Titles in this 101 - 500 group are primarily made up of Book-a-zines, SIP's, some adult coloring titles, and titles that increased frequency in the period. The 400 titles in this group represent just over 31% of the total volume. 

As the title rank grid below illustrates, the decline in the industry is very concentrated to the high volume, mass distributed titles. Celebrity, Women's and Entertainment lead the decline. Category winners are General Interest and Recreation. 
US & CDN COMPARISON Q3 2016 VS 2015


The average cover price per unit sold increased by more than 9.0% YOY in Q3. The average cover price for a unit sold in Q3 '15 for $5.28 and in Q3 '16 the average was $5.76, an increase of $0.48. The increase can be contributed to the increase in Book-a-zines and SIP's in the market. As the above grid indicates, the sell through continues to decline with each period. As indicated in our opening statement, the industry sell through is at 25.7%. 
US & CDN TITLE RANK Q3 2016 VS 2015

The Title Rank grid has a similar trend to previous periods. The lower volume titles continue to perform slightly better. For example, the group in the 501 - 1000 realized a unit decline of 8.9% compared to the nearly 13.0% decline for the top 100. 
NATIONAL DISTRIBUTOR COMPARISON Q3 2016 VS 2015

These numbers are based on which national distributor is currently billing titles to the wholesalers. 
PUBLISHER COMPARISON Q3 2016 VS 2015

While the industry continues to struggle, there are publishers with bright results in this quarter. One item to note relating to the Athlon results, the Harris titles purchased that are reflected in 2015 and were not published in 2016 account for this disparity. 
CATEGORY COMPARISON Q3 2016 VS 2015

As mentioned in the opening remarks, there are categories that are performing above the industry. The primary reason for this continues to be Book-a-zines and Specials that are published under the same BIPAD. 
TOP CHAINS COMPARISON Q3 2016 VS 2015

Chains in the top ten are Ahold/Delhaize, Albertsons/Safeway, Barnes & Noble, CVS Health, Hudson Retail, Kroger, Loblaws, Publix, Walgreen and Wal-Mart. 
CLASS OF TRADE COMPARISON Q3 2016 VS 2015


The bookstore and club store class of trades continue to perform better then the industry; while the C-Store and Newsstand COT's continue to struggle.
All sales are based on issues off-sale in the period described. All data expressed in millions. All data is based on actual wholesale O&R records and reflect all returns processed through 11/27/2016. Any questions or additional information requests should be submitted to businessinsights@magnetdata.net.