With independent retailers in London and the south east currently experiencing poor newspaper service levels, the NFRN has expressed dismay and disappointment at News UK Direct to Retail’s announcement that it is to increase its delivery charge by three per cent next year.
The news was broken in a letter to its retail customers last Friday (10). Retailers were told that the increase would be in two stages, with 50 per cent of the new charge deferred until July 5. News UK claimed this was “a gesture of goodwill”.
The letter said: “Last year we froze DDC to support retailers during the fall out from the global pandemic. We have worked hard to continually manage our costs and operational efficiencies in order to keep any annual changes to a minimum. In light of this, News UK will increase DDC by three per cent from 24th January 2022, which is below inflation. However, 50 per cent of this increase will be deferred for six months as a gesture of goodwill.”
Responding, the NFRN’s National President Narinder Randhawa said: “Last year, we were relieved when News UK DTR, along with Smiths News and Menzies Distribution, took the common sense decision to suspend any carriage charge reviews in the light of the challenging position that independent retailers were facing.
“Nothing has changed. Times are still incredibly tough for independent retailers and service levels are unacceptably low. News UK DTR pressing ahead with an increase to its charge will only add to newsagents’ angst. The company is also running the risk of causing yet even more news retailers to exit the industry. For swathes of retailers, handling news is becoming increasingly unprofitable.”
Surrey news retailer Bhavesh Patel said that NFRN members served by News UK DTR were “very unhappy”.
He added: “With our energy bills soaring and with wages set to rise this spring, many news retailers will be unable to stand an increase in their carriage charge. It is incredibly frustrating that we are being treated in this way.
“Publishers and wholesalers must have a long and hard think about their actions if they want the printed word to survive. This latest news will force some news retailers to look again at selling newspapers, particularly when we are served by two news wholesalers and have to find the money to pay two sets of carriage charges.”
