Coles to change the way it counts unsold magazines in move set to impact circulation figures
Coles is to set use new technology to change the way its magazine audits are conducted which will impact magazine circulation numbers.
The change will see Coles use scanned sales data to calculate the number of unsold magazines.
The new data assessment will be cross-checked with physical counts of unsold stock, affecting leading publishers such as Pacific Magazines and Bauer Media.
A Coles spokesperson told Mumbrella: “Coles pays all invoices from magazine suppliers in full. Suppliers subsequently rebate the invoice amount for any unsold stock.
“Rebates are calculated by using scan data cross-checked with physical counts of unsold stock. Consistent with the Food and Grocery Code and our own Supplier Charter, all payment terms are agreed in writing with suppliers, and both the code and our Supplier Charter include comprehensive dispute resolution processes.”
The new system will allow parameters to be put in place which will improve the scanning of barcodes and any unintentional theft; however, any robbery will now cost publishers directly.
Currently, supermarkets pay all invoices from magazine suppliers in full using independent companies to calculate the number of unsold copies and refunding retailers for any unsold magazines.
Supermarkets are currently covering the cost of these lost copies; however, the numbers are still included in the ABC circulation figures, increasing the audited sales numbers.
With magazines being the only audited media there is speculation on whether or not readership should be more of a focus when auditing sales.
Industry insiders think a change in auditing may see magazines distributed differently in the future, allowing for more innovation.
Woolworths, which is expected to make similar changes next year, has been approached for comment.
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Audits are a joke and if anyone takes them seriously then need only look at the hotel “sales”. In one capital city it has been common practice to “sell” bulk copies to one hotel I know of. The amusing thing is that the “sale” was a bigger number than the number of rooms. And the majority of the “order” sat in the distributor store awaiting a weekly call by the recycling truck!
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What’s the difference between an “unintentional theft” and an “intentional theft”? Sorry, officer, I didn’t mean to do it?
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Hey comedian, that is why they are all broken our and itemised as part of the AMAA audit. For example, I’d argue that for quite a few brands airport lounges is one of the best advertising channels – magazines and a few digital billboards and away you go.
But the thing that amazes me is that “any robbery will now cost publishers directly”. Isn’t that a bit like me buying a TV at Harvey Norman, the house gets burgled, and Harvey Norman has to pay? Is there no end to their boldness?
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