AddThis SmartLayers

Newsagents hit out again over cover price rises

Newsagents leaders have again hit out at regional publishers claiming they are failing to pass on cover price rises.

Both Newsquest and Local World have recently put up cover prices on some of their titles, for instance the Hereford Times which saw a 50pc increase in price from 80p to £1.20.

However the National Federation of Retail Newsagents has claimed that neither company has passed on the percentage profit margin on a pro rata basis.

It means the retailers are receiving a smaller cut for each copy of the papers sold.

Among titles named by the NFRN are the Western Telegraph, Wells and Shepton Mallet Journals, Cheddar Valley, Somerset, and Western Gazettes, Bath Chronicle, Somerset Guardian and Somerset Standard as well as the Hereford Times.

The NRFN says that some other publishers, including Archant and Trinity Mirror, are passing on the margins from cover price rises.

National President Alan Smith said: “In these austere economic times, it is very saddening to see some regional publishers increasing prices of titles but cutting margins to the retailers.

“The publishers will no doubt argue that the pence per copy given to retailers has increased, but for the retailer this is yet another cut in their profits and for many, all the more galling as it comes after they have given their local paper years of support.

“Both Newsquest and Local World will argue that these cuts are a necessity to protect the titles involved, but this has not been the case for all regional publishers.

“Only this week Archant announced another pro rata increase on the Romford Recorder, and Media Scotland recently made increases to 14 of their regional titles, all accompanied with pro rata terms. This move was warmly welcomed by Scottish NFRN members.”

Mr Smith continued: “Why can some publishers fully reward the retailers who support their product and others chose not to? That’s what we will be forcefully asking both Newsquest and Local World as well as urging them to reconsider their actions and give their local newsagents the support they deserve.”

Neither Newsquest nor Local World has not so far responded to requests for comment.

One comment

You can follow all replies to this entry through the comments feed.