LEADERSHIP
READ ALL ABOUT IT Is it time to book yourself a spot in retail as Dymocks charges ahead with innovation and growth?
D
ymocks is looking to grow its network of independently owned bookstores, says CEO Mark Newman. Mark has been in the hot seat for just over one year, joining the heritage firm after a string of high-profile luxury brand appointments including Ralph Lauren and Oroton. The book world is a fresh field for the UK native, who is excited about the challenges of a new marketplace. He recently appointed a dedicated franchise development manager, and as part of the strategy to grow the brand’s footprint around the country Dymocks will exhibit at the Melbourne and Brisbane franchising expos in August and October this year. “We have a three-year plan,” he says. And that plan involves growing the network from 50 stores to 75; embracing omnichannel retailing; boosting store growth and profitability; and providing a clear market position based on Dymocks’ 140-year heritage. The catchline is “Locally owned, nationally known”. To boost the all-important profitability of Dymocks stores, there is a focus on ensuring enough products are instore to lift overall margins “to ultimately deal with the fact that rent and staff costs go up each year”. That means improving book margins and adding merchandise within clear fields of interest associated with the books instore, he says. “Cookbooks, health and gardening – it’s easy enough to imagine items in these categories. How we merchandise is vital.” Over the past decade Dymocks has effectively seen off several other scaled-up
bookstore competitors including US brand Borders, and the franchised Angus & Robertson chain. The store and online QBE chain remains a competitor but Mark is confident that Dymocks has the competitive edge. WHAT’S SPECIAL ABOUT DYMOCKS? Firstly, franchisees and staff are crucial to the success of the business. “Our people are passionate about retail and know their customers. We have people who know what they are talking about. Customers can get a book recommendation.” The stores have an extensive backlist of books if the book required is not in store. At the Sydney flagship store in George Street the backlist numbers 150,000 items. “Customers can order a book with a short lead time, just seven to 10 days. It is unique to us,” he says. The brand’s link with local communities is also important, he points out. The Dymocks Children’s Charities is an independent charity which provides new books to children across the country as part of a mission to promote a love of reading and improve literacy outcomes for children in Australia. So far, the charities programs have provided more than 200,000 books to over 140,000 children in more than 630 Aussie locations. “Each franchisee nominates a school for the donations,” says Newman. Most recently the Read at Home program has provided books, puzzles and games valued at more than $200,000 to support vulnerable children impacted by the Covid-19 pandemic.
WHY BUY A DYMOCKS BOOKSTORE? 1. Heritage and brand reputation: the brand is still going strong after 140 years 2. A focus on profitability: the franchisor is working to improve margins and introduce new merchandise 3. Buying power: it’s a national brand with a massive stock sold on the basis of sale or return 4. Investment in technology: it’s an omnichannel business and new tech is being introduced instore 5. Knowledge-sharing 6. Community action: the Dymocks Children’s Charities are a way to give back WHAT APPEALS TO FRANCHISEES? “If you’ve been in a professional career there aren’t many options for franchisees who want to buy something to keep themselves occupied. It’s a great option if you are interested in reading or education. We’ve attracted a lot of teachers,” Mark reveals. The sheer volume of products – on average 10,000 books and related products instore – is also appealing. Overall the bookstore market has grown a significant 15 per cent in the year to date according to the Nielsen BookScan
AUG/OCT 2021 | 24 | WWW.FRANCHISEBUSINESS.COM.AU
