'Greedy' Newsquest condemned for breaking supply chain protocols

The Federation of Independent Retailers (the Fed) has today (1) condemned regional publisher Newsquest for increasing the cover prices on a range of its northern-based newspapers, including the Northern Echo and Telegraph and Argus, and keeping the full increase to itself.

Letters sent to stockists of the titles, which also include The Press, the Lancashire Telegraph and the Bolton News, advise that while the cover prices of both weekday and Saturday editions will rise with effect from Monday March 6, the pence per copy rate that retailers receive for selling the newspapers would remain the same.

The Fed’s National President Jason Birks described Newsquest’s move as an outrage:

“For retailers this represents a double whammy, with a cut in the percentage terms that retailers receive and no increase in the pence per copy," he said.

“At a time of such austerity and when the news industry should be pulling together to protect the printed copy, these price increases and cuts to our percentage and pence per copy terms will alienate retailers and readers too.

“This is a very dangerous precedent to be setting and we would strongly urge the Newsquest management to think again.”

To make matters worse, the letter from Newsquest’s Robert Wood thanks retailers for their continued support and encourages them to contact the publisher for help with promotional activity, canvassing or for new point of sale material.

Mr Birks continued: “The arrogance of Newsquest is astonishing. It is highly unlikely that, having been treated like this, any retailer will be calling it to request POS items.”

In a surprise move, however, retailers will get a pro rata increase in their terms when the cover price of Newsquest’s Carlisle papers rise from Monday.

“It is inconceivable that Newsquest believes that it can give with one hand yet take with another. In such challenging operating conditions, news retailers need pro rata terms increases to simply stay still. I wonder if Newsquest’s American owner, Gannett, is aware of its actions and how it is shooting itself in the foot with both retailers and readers and if this is really how it wants to work with its supply chain partners.”