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MagNet

BUSINESS INSIGHTS

4Q2012 and 2012 Annual Sales Review 

February 2013

In This Issue

Weekly and Non-Weekly Comparison 2012

US and Canada Sales Comparison

Top Chain Comparison

Class of Trade Comparison

Top Publisher Comparison

National Distributor Comparison

Marketing Company Comparison

 

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Fourth quarter, 2012 sales benefited from the fact that there were more issues distributed in the 4there were more issues distributed in the 4th quarter this year than in the same period of 2011. MagNet's sales analyses include total sales and not average sales per issue.  In the fourth quarter of 2012, the top fifty titles alone collectively had over 7% more issues than were released in the fourth quarter, 2011. Unfortunately, the additional issues only softened the overall rate of sales decline for weekly titles. As we had stated in a previous newsletter, based on our retailer POS sales analyses, non-weekly title sales were actually flat to slightly higher during the third and early fourth quarters compared to 2011, which is now reflected in our fourth quarter wholesaler numbers. Keep in mind that MagNet reports sales based on "off-sale" dates for all BIPADS/titles sold, both audited and non-audited titles.

4th Quarter 2012 Vs. 4th Quarter 2011

4Q Sales Matrix 2012
* All numbers reported in millions 

Weekly Vs. Non-weekly Annual Sales Comparison 2012 Vs. 2011 - US and Canada

weekly non-wkly 2012 vs 2011

* All numbers reported in millions

 

Even with many weekly titles having an extra issue in 2012, the retail dollar sales decline is double that of the non-weekly titles. The non-weekly title sales in the US actually performed better than in Canada.

 

Annual Sales Comparison 2012 Vs. 2011 - US and Canada

Top 1000 2012 V2

* All numbers reported in millions
 

The comparison above illustrates the variance between the Top titles in 2012 versus 2011. It is not a title to title comparison, but evaluates the top titles in each grouping in 2011 compared to the titles in the same cluster in 2012. The weekly title sales helped contribute to the trend of the top fifty titles having the largest percentage of decline of any group. 

 

Top Chain HQ - 2012 Vs. 2011 - US and Canada

The Top Chains performed better than the industry average, indicating that a large amount of the sales loss was attributed to smaller independent retail accounts. While the Top 50 chains represented nearly 80% of the total volume their sales loss was 2.4 percentage points less than the total industry sales decline. The Top 10 chains in 2012 in magazine sales include: Barnes & Noble, CVS, Hudson News-Retail, Kroger Co., Publix Super Markets, Safeway Inc., SuperValu, Target Corp., Wal Mart Stores and Walgreens. Other notable chains in the Top 15 are Ahold USA, Loblaws, Paradies Shops, Shoppers Drug Mart, and Wal Mart Canada.

2012 Chain HQ Matrix

 

Class of Trade 2012 Vs. 2011 - US and Canada

2012 COT Matrix

Sales declined in all Classes of Trade in 2012, with the exception of Discount Stores, where additional stores began selling magazines. Club Stores also performed better than the industry average. The top ten COTs represented about 96% of the total business, producing more than $3.282 billion in sales.

 

Top Publishers 2012 Vs. 2011 - US and Canada

Top PUB 2012 Vs 2011

The Top 10 magazine publishers represented just over 61% of the newsstand business in 2012. The Top 6 publishers represented over half the market, with Time Inc. still holding a significant market share lead. We did see a few shifts in this elite group, with Penny Press moving up one slot when compared to the 2011 rankings and Harris Publications improving their ranking by two spots. 

 

National Distributor Share of Business - US and Canada

ND 2012 Vs 2011

This chart illustrates the share of newsstand business each national distributor represented in 2012, based on sales of the titles they currently represent. The national distributors, with high fixed costs similar to wholesalers, like wholesalers, they too are being forced to reduce their costs as sales continue to decline.

 

Marketing Companies 3Q2012 - US and Canada

2012 Marketing Grp V2

Because some national distributors provide billing services for publishers while other companies provide marketing services for the same titles, this chart segregates the sales by marketing companies.

 

MagNet is the industry's only complete source of sales data. The information we report is based on actual wholesale order and regulation data that is updated weekly. The MagNet "Newsstand Industry Resource Center" (NIRC), is used to provide the content in Business Insights and is utilized by publishers and national distributors to manage their newsstand. Please feel free to contact MagNet with any questions regarding this newsletter or interest in our reporting capabilities.