The Fed raps Guardian for cutting terms

The Fed has criticised the Guardian for 'following the herd' and accompanying cover price rises on its weekday and weekend newspaper titles with adjustments to their terms.

From Saturday (April 22), Monday to Friday editions will rise by 30p to £2.80. Both the Saturday publication and Sunday’s The Observer will also increase by 30p and will both cost £3.80.

At the same time, the percentage margin that retailers receive for selling the newspapers will decrease to 21.5 per cent on weekday editions, 21 per cent on Saturdays and 23 per cent on Sundays.

In a letter to retailers, the Guardian blamed the terms cut on ‘record’ increases to the cost of paper.

The Fed’s National President Jason Birks has written to the Guardian’s chief financial and operating officer Keith Underwood criticising the move.

"Neither retailers nor their customers will take this news well. For retailers, this could mean reviewing the profitability of selling the Guardian against other product categories and for customers it could mean buying the paper on fewer days of the week," Birks said.

"Given the low circulations of the Guardian and Observer, this is a risky strategy indeed, which is why I have written to Mr Underwood.

"The Guardian needs to be aware that while the Fed remains keen to actively promote print, not just to our many thousands of members but to readers too, retailers need to be rewarded properly to do so."