Skip to content
Search
AI Powered
Latest Stories

Smiths News carriage charge to rise by nearly 3 per cent

The Federation of Independent Retailers has expressed dismay at the Smiths News announcement that it will raise carriage charges by 2.9 per cent from 28 August.

The Fed confirmed that the news wholesaler’s customers were receiving letters advising of their new charge today (15 July).


“While Smiths News’ action is not surprising – in fact, its CEO Jon Bunting alluded to it at our April national council meeting – as the cost of living continues to bite and our bills go ever upward, we are dismayed,” Jason Birks, national president of the Fed, said.

“Also, there is no guarantee from Smiths News as to how or even if, this new income from carriage charges will be reinvested into its business. If that were to be the case, at least members would see some service improvements. Currently, for too many of our members, the service levels they are receiving remain unsatisfactory.”

The trade body noted that retailers supplied by Smiths News will find themselves paying more than £63 per week for their news and magazines to be delivered as a result of the increase.

The move follows similar increases in carriage charges by Menzies Distribution and News UK earlier in the year. Menzies customers saw their carriage charges rise by 3.5 per cent, while News UK Direct to Retail announced a 3 per cent increase.

Birks warned that retailers would be unable to absorb this latest increase. He said: “Sadly, our members will have no option but to pass on these costs to their home delivery customers, which in turn could put this service at risk. Some consumers purchasing in store may also pay more for their newspapers and magazines come August 28, as retailers could look to over-sticker the printed cover price to help recover their ever-increasing operating costs.”

However, he acknowledged that with inflation, national wage contributions and fuel prices all soaring, that the news wholesaler had taken some steps toward lessening the impact of the increase on news retailers.

Birks said: “As part of our closer working relationship with Smiths News, it has kept us appraised of its possible actions, advising us of the new rates 24 hours before letters were due to arrive in members’ stores. This gave us a chance to air our concerns and had Smiths News used its old template for calculating the increase, we are well aware that the rises would have been much higher – and possibly into two digits.”

However, he renewed calls for the newspaper industry to look at alternatives to carriage charges.

“It is disappointing, that year in year out, newspaper wholesalers just look to adjusting the carriage charge rates without ever considering or implementing any alternatives. It is apparent that there remains a real reluctance among some of our supply chain partners to change the carriage charge model.”

Birks added: “The news supply chain - with its absolute territory protection and private publisher agreements – is outdated and in need of an overhaul. Unless something happens soon, newspapers and magazines run the clear risk of losing the powerhouse status they enjoy at retail.

“Added to this is the risk that more retailers will turn to sub retailing for their supplies, while others will exit the category completely.”

More for you

Sugro UK partners with Britvic to launch industry-first sample box

Sugro UK partners with Britvic to launch industry-first sample box

Leading wholesale buying and marketing group Sugro UK has collaborated with Britvic Soft Drinks, a global organisation with 39 much-loved brands sold in over 100 countries, to launch a groundbreaking Fast Food Sample Box.

The sample box is specifically designed for ICS UK LTD customers, giving them a unique opportunity to sample and experience new Fast Food soft drinks offerings firsthand.

Keep ReadingShow less
Plant-based ready meal

Plant-based ready meal brand on brink of collapse

British plant-based ready meal maker Allplants has filed a notice of intention to appoint administrators, citing ongoing financial losses, stated recent reports.

Allplants, known as the UK’s largest vegan ready meal brand, has faced mounting losses over recent years. Filing the notice provides the company with a critical window to explore options to avoid liquidation, such as restructuring, refinancing, or negotiating a sale.

Keep ReadingShow less
sottish retail-wholesale

Scottish retail-wholesale figure celebrated at University of Stirling graduation

Entrepreneur and businessperson Stanley Morrice, an influential figure in the retail and wholesale sectors, received an Honorary Doctorate from the University of Stirling at Stirling’s winter graduation held today (22).

Stanley, from Fraserburgh, is being recognised for his services to Scottish food, drink and agriculture. He entered the sector as a school leaver. In 1993, he joined Aberdeen-based convenience stores Aberness Foods, which traded as Mace. He rose to become Sales Director, boosting income by 50 per cent and tripling profits, and went on to be Managing Director, successfully leading the business through a strategic sale to supermarket group Somerfield.

Keep ReadingShow less
consumer cheer
iStock image
iStock image

Consumers cheer up as Budget nerves lift: GfK

British consumers have turned less pessimistic following the government's first budget and the US presidential election and they are showing more appetite for spending in the run-up to Christmas, according to a new survey.

The GfK Consumer Confidence Index, the longest-running measure of British consumer sentiment, rose to -18 in November, its highest since August and up from -21 in October which was its lowest since March.

Keep ReadingShow less
Retail Sales
Photo: iStock

Retail sales take bigger-than-expected hit in October

British retail sales fell by much more than expected in October, according to official data that added to other signs of a loss of momentum in the economy in the run-up to the first budget of prime minister Keir Starmer's new government.

The Office for National Statistics (ONS) said sales volumes have fallen by 0.7 per cent in October. A Reuters poll of economists had forecast a monthly fall of 0.3 per cent in sales volumes from September.

Keep ReadingShow less