Publisher Newsquest has reportedly cut the percentage margin paid to retailers as part of a price increase on the National and Herald in Scotland.
The Federation of Independent Retailers said Newsquest’s US parent company Gannett Media have cut margins to as low as 16.7 per cent on some titles.
The trade body criticised the move as a “Halloween trick and kick in the teeth for retailers,” noting that it has asked the publishing fraternity earlier this year to maintains at least an 18 per cent margin to ensure retailers would at least break even.
“This move means hard working retailers are expected to devote space and time to loss-making titles,” the Fed’s National President Hetal Patel said. “I strongly encourage Newsquest to review this decision and get around the table for discussions on a way forward, and perhaps best avoid demonstrations taking place.”
The Fed said they will be seeking an urgent meeting with Newsquest to discuss the situation.
“While we fully appreciate that it has largely been made in offices in New York, we feel it is important that circulation and financial managers at Newsquest are given the opportunity to hear firsthand the financial impact this will have on some of their key retailer partners – without whom they would not survive – so that they can relay this feedback to their overlords in America,” Brian Murphy, Director of News & Operations, added.