The Fed (Federation of Independent Retailers) has voiced its anger and disappointment over Reach PLC’s decision not to include pro rata profit margins as part of increases to the cover prices of two of its national Sunday papers.
From July 3, UK editions of the Sunday Mirror and People will rise from £2 to £2.10.
However, In a blow to retailers who sell the newspapers, the move means that their profit margins will reduce from 20 per cent to 19.5 per cent, putting the two titles at joint second lowest in a league table of percentage margins for national Sunday newspapers.
In terms of actual profit received by retailers, the Sunday Mirror and People also rank among the lowest at 40.95p per copy.
The Fed’s National President Jason Birks criticised the decision, saying, “Apart from the fact that this announcement lets down the very people who have kept the news trade going for so many years, it also sends a mixed message.
“Just days ago, Reach included pro rata terms following price increases to the Daily Express and Daily Star. It therefore goes against the grain to now say the same conditions do not apply to these Sunday titles.”
The Fed has produced league tables of profit percentage margins and pence per copy profits for all national newspapers which it has communicated to all its members.
“Our members need to be aware of the figures so they can compare and make an informed decision on which titles they continue to stock as part of their news range,” the Fed’s head of news Brian Murphy added.
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