READ ALL ABOUT IT

Is it time to book yourself a spot in retail as Dymocks charges ahead with innovation and growth?

Dymocks 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. 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

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

A NETWORK OF BOOK LOVERS

Some Dymocks franchisees have been in the network for more than 30 years, some are aged in their 80s.

“There’s huge loyalty and depth of knowledge,” says CEO Mark Newman. “Our people are passionate about retail and know their customers.”

Australia figures, with a full year growing just under 10 per cent. Dymocks has had its share of this business boost. “Regional and suburban has done very well, the CBD is improving,” says Mark.

Looking ahead to network growth, Newman confirms there will be a mix of suburban and regional locations in the plan with northern Australia a particular target. “We’re not in the Northern Territory and Queensland is under-represented,” he says. There’s plenty of potential in the booming south-east corridor, for instance.

The mega footprint of the George Street store is far from typical of the new generation of Dymocks outlets, which now are right-sized at 200 to 250 square metres.

Future retail is also about bringing a little bit of theatre to the shops. “We are restarting instore events,” says Mark. “They bring crowds of people and generate traffic for shopping centres.”

Bringing technology into stores is also top of the list in smaller stores. That means an improved search function, a store map that’s easy to navigate, assisted self-checkout and the capacity to order online using a touch screen.

Releasing staff members from the administrative, information-giving roles means they are freed up to do what they do best: talk about books.

It’s an omnichannel journey.

SO WHY BUY A DYMOCKS FRANCHISE? “The brand reputation and credibility, the depth of knowledge. We have a national network and buying, marketing power. From a bookstore perspective it’s unique. It’s a great option.”

Mark cites knowledge-sharing as another strong element of the business model. And he points out the children’s books section is a very strong part of the business, tying in neatly with the charities program.

“It’s important for both employees and customers to have a purpose,” he says. n

BUILDING FRANCHISE RELATIONSHIPS

Newman brings some franchise experience to the role, as a franchisor with British brand Alfred Dunhill, and with Oroton.

“What’s important is to develop relationships with stakeholders so I visited distributors and suppliers. What’s most important is to get to know the franchisees and understand their challenges.”

Arriving at his desk right in Australia’s Covid flash point, it took some time for Newman to fulfil his commitment to meet franchisees.

“I’ve now met all except two,” he reveals.