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2015 Q3 Newsstand Sales Results

The sales in the 3rd quarter of 2015 compared to 2014 appear to have "caught up" with the loss of Source Interlink in the year over year comparison. While we continue to experience double digit declines, lost distribution from the Source closure had stabilized somewhat by this period in 2014. 

As you review the 3rd quarter trends, please note that all B&N numbers are estimated based on previous years results/trends and projecting 2015 results. 

The newsstand remains a challenging environment, as demonstrated in the detailed insights contained in this newsletter. While the sell through efficiency improved in the 3rd quarter to 27.4%, up from 26.5% in the first half, overall draw was nearly equal (-1.8%) versus last year. However, sell through is down more than 3 points from the 31.0% sell through we experienced in the same quarter 2014, indicating that the channel continues to seek all opportunities in the market place. With that said, the Canadian sell through improved by 2 points on a draw reduction of 16.0%.

While the decline over nearly a decade continues, MagNet has identified several editorial categories that have achieved positive YOY growth.  Some of those successes are detailed below.     
US & CDN COMPARISON 2015 Q3 VS 2014 Q3

Both the US and Canada realized double digit declines in units, but as a result of the continued trend of cover price increases, the overall dollar decline fell below the double digit trend for the first time in quite a while. The Canadian average cover price in the 3Q2015 was $6.06 (LY $5.86) and in the US it was $5.38 (LY $5.34).

Looking at title sales it is still apparent that the weekly category leads the decline factor. One fascinating trend in the title rank is that as you review cover price, it increases as you move down the rankings. The Top 25 is $4.04; Top 50 is $4.28 and as you move to the Top 400 the average is $5.14. 

Reviewing the title detail reveals that the primary contributor to this trend is a result of the additional SIP's introduced to the market place. The SIP's tend to be higher cover prices, and being topical do create sales that impact the channel in a positive manner. 

The numbers reflected are based on which national distributor company is currently billing titles to wholesalers.

This chart reflects several publishers in the Top 15 that continue to buck the trend. Penny Press realized positive growth again this period and Kappa Publishing realized an incredible 20.6% increase over the same period last year.
CATEGORY RANK 2015 Q3 VS 2014 Q3

There were 2 shining stars in the category segments, GAME/PUZZLE/X-WORD and SCIENCE. The GAME/PUZZLE/X-WORD category was do primarily to the astounding results from Penny Press and Kappa. The automotive category gets an honorable mention for 0.5% increase over LY same period; however this was primarily the result of 2 issues LY versus 3 issue TY in the period, based on off-sale dates. Many titles in this category had an extra issue in the 2Q2014, again based on off-sale dates, and one less issue is 3Q2014 inflating the increase.
TOP CHAINS 2015 Q3 VS 2014 Q3

Please note, that B&N sales are estimated in this chart. The Top 10 chains, based on our calculations are (in alpha order): Albertson's/Safeway; Barnes & Noble; CVS Health; Hudson News Terminal; Kroger Co.; Loblaw Companies; Publix Supermarkets; Target Corp.; Walgreens and Wal-Mart US.
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 11/17/2015. Please note B&N is estimated in all our trends and not included in any of the detailed charts and grids. Any questions or additional information requests should be submitted to

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