In a break from its practice of reducing the percentage margin for retailers with the increase in cover prices, newspaper publisher Reach has accompanied forthcoming price rises on its Monday to Friday editions of the Daily Mirror with pro-rata terms.
Last month, the publisher has cut the retailers’ margins when it increased cover prices of the Daily Express, Daily Star and the Saturday edition of the Daily Mirror.
Reach said in a trade notice that from 1 February, weekday editions of the newspaper would rise by 5p. In England, Wales and Northern Ireland the new price will be 90p, with retailers earning 18p per copy sold. In Scotland, the new cover price will increase to 95p, with stockists getting 19p.
The Federation of Independent Retailers (NFRN) has commended the publisher for acting on members’ concerns.
“Earlier this month, we had a very constructive, high level meeting with Reach when we made clear our members’ dismay and anger at the adjustment to their profits. We also put forward the NFRN’s expectation for pro rata terms whenever newspaper cover prices rise,” Stuart Reddish, national president of the NFRN, said.
“We are pleased that as well as listening carefully to our concerns, that the Reach executives have clearly taken on board our arguments and have responded so positively by applying pro-rata terms to its latest price increases. Now, more than ever, independent retailers are facing ever increasing operating costs and to remain viable, we need the publishers support.”
Reach has been consistently reducing retail margins alongside cover price increases of its titles over the last two years, prompting NFRN to call for a review into fairness in the news supply chain.
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