The NFRN says: “While the newspaper publisher has said it will protect retailers’ margins for this issue only, it has warned that the price change is “until further notice” and if the £1 price continues, the Express’ 21.2 per cent margin (already the second lowest in the Sunday newspaper market) will apply to the reduced £1 cover price – effectively wiping more than a quarter off retailer terms as their pence per copy payment is reduced from 28.6p to 21.2p.
Whilst the Express’ tactic is to encourage former News of the World readers to buy the Sunday Express (nothing wrong with that) what is wrong is that the publisher should abuse its position by stealing from newsagents to pay for its cut price promotion.
For many years publishers have traded on very thin ice so far as printed cover prices are concerned (because they are legally only a recommended retail price and therefore not enforceable) and have got away with it by not seeking to abuse this privilege and maintaining retailer terms when cover prices increase – or sustaining retailer cash income when cover prices are reduced for marketing and promotional purposes. That privilege has now been abused by some publishers so many times that publishers’ continuing control over cover price is now being seriously questioned by retailers.
Up to now, removal of the printed cover prices has been anathema to many retailers, but that long-held tenet is now being seriously challenged. As successive publishers are attacking retailer margins, and wholesalers are reducing profitability by hiking up carriage charges, the clamour of voices calling for a referral to the Competition Commission is now reaching a crescendo.
As NFRN National President Kieran McDonnell says: “If the news industry supply chain wants a war, a war is what we will give them. I have already put in train plans and actions for the NFRN to launch the most powerful and extensive public affairs and media campaign ever. Nothing is taboo. If we are forced to campaign for the removal of cover prices – so be it!
“Retailers, hitherto a strong, but largely silent body, are now under siege from publishers and wholesalers alike who are both attacking their survival by these constant attacks on margins and hikes in carriage charges.”
Mr McDonnell concludes: “The unethical way in which publishers and wholesalers abuse their power in this industry to exploit retailers has now gone too far and retailers have had enough. We will be doing everything in our power to urge politicians and the competition authorities to refer this to the Competition Commission for a full market investigation.””
