The Federation of Independent Retailers (the Fed) has expressed dismay at the news that Smiths News is to increase its carriage charges by 3.1 per cent from September.
According to the news wholesaler, 18,000 news retailers will see their bills rise when the new template takes effect from September 2. Those with the largest news bills will have to pay £69.20 a week for their newspapers and magazines to be delivered.
National President Muntazir Dipoti said: “With the cost-of-living crisis continuing to bite and our bills continuing to rise, news of this increase is a real blow.
“While HND operators can try to pass on the costs to their customers, this is not an option for newsagents selling counter only copies and could make selling newspapers and magazines unviable for even more Fed members.”
Mr Dipoti added that it was now time for publishers to intervene if the printed word was to continue to be available nationally.
He said: “The current system of charges going up and sales going down is unsustainable.
“No longer can publishers hide behind the argument that carriage charges are an issue between wholesaler and retailer only, particularly as they control both price and margin. It is high time they took action to ensure that any carriage charge that is applied is fair and affordable.”
Announcing the rise, Smiths News said it was due to “unprecedented cost inflation across wages, fuel and driver retention”, adding that it had been a “difficult decision” to make.
The Fed’s news committee chairman Vince Malone said: “Smiths News may claim to have reviewed its carriage charge template before making this announcement, but to the Fed and its members, this appears to be nothing more than a tick the box exercise.
“I really wonder if the Smiths News board understands the news channel and especially the important role that independent retailers play. Carriage charges are outdated and unfair as they deny retailers a large slice of the margin that they should receive from selling news.”
Brian McLister