Publisher Reach has not included pro-rata profit margins as part of increases to the cover price of the Daily Mirror and Daily Star.
From 2 May, weekday editions of the Mirror will increase by 5p to £1, with the Saturday edition increasing from £1.60 to £1.70. In Scotland, weekday editions will go up to £1.10. The same increases of 5p and 10p apply to the Daily Star.
However, the move means that their profit margins will reduce from 20% to 19.5% for weekday editions and from 20% to 19% on Saturdays. Profit margins on sales of the Daily Star will also reduce from 20% to 19% on all editions, except Sundays.
The Fed’s National President, Narinder Randhawa, said: “This decision by Reach lets down the very people who have kept the news trade going for many years and particularly during the Covid pandemic.
He added: “While we understand that publishers have to raise cover prices to counteract increases in the cost of raw materials, such as paper and aluminium, it is unfair to ask retailers to absorb these costs at their expense.”
