- 'Sneaky' rises in cover prices plus margin trims provoke news retailers rage fest
- Margins to drop one per cent next year
- Fed chief Hetal Patel says "unfair practice must stop"
An independent retailers' body has slammed Sun and Times publisher News UK for trying to push through cover price increases accompanied by margin cuts under the radar.
Just hours ahead of letters going out from the publisher, the Federation of Independent Retailers (the Fed) learned that the price of UK weekday editions of the Times will increase to £3.20 from July 14.
However, the new retail margin paid for each copy sold will not be recognised until January 2026 and even then, will drop 1 per cent.
At the same time, all editions of the Sun will rise in price, with Monday to Friday editions increasing to £1.20. The Saturday edition will rise to £1.60 and the Sunday edition to 1.90. The margin on all editions will drop 1 per cent to 20 per cent.
The news reached the Fed just one week after Hetal Patel was elected as National President at the organisation’s Annual Conference.
Addressing delegates in Birmingham, Patel vowed to campaign against injustices and poor service from suppliers, adding, “We will not be silent when we believe something is wrong or unfair.”
Condemning the Times’ move in particular, he said, “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 and it must stop.”
Patel added, “Many independent retailers will be unable to survive in business, if News UK and other publishers continue to accompany cover price rises with cuts to our terms.”
He continued, “The email we received from News UK just hours before formal letters were sent out gave no explanation as to why the terms cut was necessary, in fact, details of these cuts were hidden, further demonstrating a clear attempt to sweep the enforced change under the carpet.”
A recent Fed survey revealed that a staggering 96 per cent of members are struggling to survive because of rising retail crime rates coupled with increased employment and energy costs.
Patel said: “We will be discussing these margin cuts with our members and we will take any action that is needed to reverse this ill-thought-out decision while there is still time.
“At the Fed’s 2024 Annual Conference, Mr Dinsmore told members that the printed copy was a vital and integral part of British life and a lifeline for communities.
"Fast forward a year, and News UK’s actions could lead to more stores delisting its products, as well as threatening the future of HND. It is short-sighted for the publisher to believe that customers will simply accept increases to both the price of their newspaper and their delivery charge.”
