The Federation of Independent Retailers has strongly criticised Newsquest for cutting retailer margins as part of a price increase on the National and Herald in Scotland, describing the move as “a Halloween trick and a kick in the teeth for retailers”.
Despite earlier discussions with publishers on maintaining at least an 18% margin to ensure retailers break even, Newsquest’s parent company Gannett Media has reduced margins to as low as 16.7% on some titles.
Hetal Patel, National President of the Fed, said: “The Federation has stated a policy of pursuing margin increases to protect the viability of news for members. This move directly flies in the face of this aim and is unwelcome. Hard-working retailers are now expected to devote space and time to loss-making titles. I strongly encourage Newsquest to review this decision and get around the table for discussions on a way forward.”
Andrew Williamson, News Category Manager, added: “Gannett, the American company which ultimately owns Newsquest, has made this decision from their ivory tower. Giving retailers less than 48 hours’ notice of a cut to their terms is underhanded and not the behaviour we expect in a professional trading relationship.”
Brian Murphy, Director of News & Operations, said the Fed will seek an urgent meeting with Newsquest to outline the financial impact on retailers. Craig Etchells, Chair of the Federation’s News Operations Committee, stressed the importance of supporting Scottish members, calling the terms cut “frankly disgraceful”.
