Newstrade

Reach, News UK cut margins

The move to cut retailer margins on many national and regional titles has been criticised by the NFRN.

Reach and News UK have decided to accompany price rises on many of their national and regional titles with a cut in the percentage margin that retailers receive.

Reach has revealed cover price rises of 10p on a large number of its regional titles, including the South Wales Evening Post, Western Mail, Teesside Gazette, Grimsby Telegraph and Cambridge News, from 30 May. At the same time, the percentage margin that retailers receive will be cut to as low as 16.5% on some of the publications.

In addition, the Monday to Friday editions of the Daily Record will now cost £1, on Saturdays it will cost £1.60, while the Sunday Mail will rise to £2.30. The new margin for the Daily Record will be 19.5% on Monday to Friday editions and 19% on the Saturday newspaper. The Sunday Mail margin is being adjusted to 19.5%.

Meanwhile, News UK has revealed that price increases on Monday to Friday, Saturday and Sunday editions of the Sun and Times will take effect from 6 June. Weekday editions of the Sun will rise 10p to 80p, the Saturday edition will increase to £1.10, and the Sunday edition rises to £1.40. The percentage margin on all editions will be cut to 21%.

Weekday editions of The Times will rise 30p to £2.50, the Saturday paper will cost £3, and the Sunday Times cover price will increase 50p to £3.50. From December 5, the margin of all Times editions will be cut to 20%.

In response, NFRN National President Narinder Randhawa, said: “While each cover price rise does offer some pence per copy increases, this is limited, and Fed members will not see such moves as in the interest of a fair-trading relationship.

:I have said it before and will say it again – cover price increases and margin cuts will cause more people to exit from the category when the net percentage margin and volume sold is evaluated against the space it is given.”