The Fed (Federation of Independent Retailers) has voiced its anger and disappointment over Telegraph Media Group’s (TMG) decision to reduce newsagents’ profit margins as part of increases to the cover prices of its titles.
From this weekend, the Saturday edition will go up in price from £3.50 to £4, while the Sunday Telegraph will rise from £2.50 to £3. From Monday February 6, weekday copies of the Telegraph will increase in price from £2.80 to £3.
However, the new retail margin paid for each copy sold will again not be recognised until August and even then, the retail margin for the Saturday edition will drop by 1 per cent and the Sunday edition 0.5 per cent.
The Fed’s National President Jason Birks said: “It is very disappointing that TMG is following the publishing herd and has again chosen to upset its most loyal trading partners by cutting percentage margins and deferring any benefits for six months.
“It is totally wrong to delay paying retailers their fair dues, particularly on countertop sales where there is no requirement to delay the increase. This is an unfair practice that must stop.
“TMG knows who subscribers are and who are not, so it has to explain and justify why this one size fits all approach is again taking place.”
The Fed’s National Vice President Muntazir Dipoti added: “This should not be linked to subscription renewals, as consumers will be at different points in their subscription cycle. The question has to be answered – why can’t TMG pay retailers in advance for subscription sales? After all, it has taken the money from the customer up front, and it is simply not fair, as 25 per cent of the sales remain casual purchases.”
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