News publisher Reach has reportedly cut retail terms as it increased the cover price of the Sunday Express.
The price of the title will increase from £2 to £2.10 from this Sunday (July 31), but the percentage margin paid to retailers will be cut from 19.5 per cent for each copy sold to 19 per cent.
The Federation of Independent Retailers (the Fed) has expressed disappointment on the development, saying that the ‘constant cuts’ to retailers’ margins are not sustainable.
“I implore all publishers - national and regional - to consider the consequences of these decisions,” Jason Birks, national president of the Fed, said.
He noted that the announcement from Reach follows on from regional publisher Newsquest cutting retailers’ profits by increasing the cover prices on a number of its local titles in the northern part of the country but keeping the full amount to itself.
“Publishers are taking these actions without even considering the work that retailers must do to ensure their titles are available and sold,” he added.
Birks said he was further disappointed with the move, given that that the Fed had been working closely with Reach over recent years to support its national and regional titles.
The Fed officials are due to meet with Reach’s top brass shortly and Birks assured that this subject would be top of the agenda at this meeting.
Brian McLister