NFRN National President Mike Mitchelson has accused publisher Reach of dealing news retailers with a second body blow in the space of two months by accompanying the latest cover price increases on two of its titles with a cut in terms.
From this weekend, the cover prices of both the Sunday Mirror and Sunday People titles rise by 10p to £1.70, but the margin the retailer receives will fall from 21 per cent to 20.5 per cent.
In a letter to the retail trade, Reach says that the profit paid to the retailer will increase to 34.85p sold. It concludes: “Many thanks for your continued, much valued support for all of the Reach titles.”
Mr Mitchelson responded: “What Reach fails to reveal is that the retail margin is down to a new low of 20.5 per cent. Had our terms been maintained we would actually have been receiving 35.7p for every copy sold.
“This is the second body blow that Reach has inflicted on us in just two months. Back in March the price of the Daily Mirror rose 5p but our margin fell to 20.80p. Now the margin on its two Sunday titles are falling to a new low.
“If Reach really did appreciate our continued support it would be taking on board the needs of independent news retailers.
“We have ever increasing costs which we have to fund. To do so we deserve our fair share of any cover price increases.
“To say we are disappointed is an understatement.”
Download the trade letter for new barcode details.