09-Mar-10

NEWSAGENTS SPELL OUT ANGER OVER SCOTTISH DAILY EXPRESS MARGIN CUT

Retailers across Scotland have been exclaiming their anger and dismay at the decision by Express Newspapers to slash newsagents’ margin by a whopping 12.5% from 9.68p to just 8.47p for each copy sold from March 8 2010.

Whilst it is a matter for publishers to balance their competitive position in the market place, to pay for this by imposing an income reduction on retailers who are already suffering increased costs is not just totally despicable but likely to cause a back-lash from Scottish newsagents who, for many years, have been the pawns in a price-war chess game conducted by publishers, as though Scotland was a distant foreign Country.

Once again, without any consultation or negotiation, retailers are being expected to fund price cutting activity determined solely by publishers.  Yet this totally ignores the fact that pricing is only critical on the newsstand whilst the backbone of independent newsagents’ sales are through Home News Delivery where price and margin cuts are unnecessary and from an economic aspect, crude and crazy!

Instead of winning the support of retailers to grow sales, no doubt many Scottish Newsagents will now be considering whether they can make more profit in their shops by utilising the space to sell something that provides a better return.  Others, aware that they have the right to set their own selling price on newspapers (as they already do for HND charges), will be giving further thought to this option.

Whilst the notification letter from Express Newspapers thanks newsagents for their continued support – only individual newsagents will decide whether they continue to support the Express.

NFRN National President, Suleman Khonat says:  “Our Scottish colleagues have my full support over this issue and I shall be writing to the Office of Fair Trading on their behalf.”

 

 
Author:
David Daniel
Publisher:
National Federation of Retail Newsagents
Date:
09-Mar-10
Categories:
 
Sections:
News

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