Newspapers

Retailers ‘betrayed’ as Reach cuts terms on more titles

The NFRN says its members are being “forced out of selling news as profits are falling”.

Newspaper publisher Reach has increased the price of the Daily and Saturday Mirror editions, but cut margins. The news came just two days after the publisher announced a price rise and margin cut on the Sunday Express.

The weekday editions of the Daily Mirror in England, Wales and Northern Ireland have increased in price, from £1 to £1.10, while the margin will be cut by 0.5% to 19%. In Scotland, the cover price will rise from £1.10 to £1.20, with a 1% cut to the margin, taking it down from 20% to 19%.

Saturday editions are also increasing in price. In England, Wales and Northern Ireland, the price will rise 10p, from £1.70 to £1.80, but terms remain pro rata at 19%. The Scottish edition, however, will see a 20p price hike to £1.80 with a 1% margin cut down to 19%.

Jason Birks, National President of the NFRN, commented: “I feel betrayed by these margin cuts, as they are basically wage cuts to retailers. Five years ago, we were receiving margins of 21.4% on weekday editions and 20.6% for the Saturday newspaper and look where we are now.

Birks said the situation in Scotland “is even worse”. Retailers north of the border used to receive 32p for every Saturday Mirror sold, but now – with the 20p price hike and latest 1% margin cut – they will receive 34.2p per copy sold, around only 10% of the price increase. “Our members are simply being forced out of selling news as profits are falling,” Birks said.

He added: “I am looking forward to meeting the decision makers at Reach soon and seeking reasons why the retailers are always the ones who are hit in the pocket the most.”