Retailers across Scotland have been angered by the decision of Express Newspapers to slash newsagents’ margin by a “whopping” 12.5%, from 9.68p to just 8.47p for each copy of the Scottish Daily Express sold, from this week.
The National Federation of Retail Newsagents (NFRN) said it was a matter for publishers to balance their competitive position in the market place, but it was upset that Express Newspapers wanted to pay for this by imposing an income reduction on retailers “who are already suffering increased costs”.
“It is not just totally despicable but likely to cause a backlash 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,” said the NFRN.
“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 is 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 president Suleman Khonat said: “Our Scottish colleagues have my full support over this issue and I shall be writing to the Office of Fair Trading on their behalf.”
Source: NFRN
