NEWS & MAGS Subs customers revert to buying mags in stores

by Jack Courtez jack.courtez@newtrade.co.uk

Magazine subscription customers are reverting to buying in stores, according to Jamie Wren, commercial marketing director at distributor Intermedia.

Speaking at the company’s Intermedia Live event on 21 June, he said magazine subscriptions were “easier than ever to cancel”, contributing to a 1.3% drop in subscription copies sold.

Wren explained: “People are cancelling subscriptions and maybe becoming more promiscuous purchasers who go to find magazines on newsstands.”

Online strategies also came under fire from publishing consultant Amanda Wiggington, who described publishers’ “incessant focus on digital scale” as the “crack cocaine of the 2020s”.

“We’ve been so focused on scale, we’ve lost sight of what’s really important,” she added.

Wren suggested publishers should focus on “profitable newsstand distribution”, including through independent stores. He said 33% of titles were in year-on-year newsstand growth and that, while the number of independents had fallen in the past decade, “what we are finding is that what’s left are more quality stores, with more specific range retailers.”

In contrast, the state of magazines access in discounters such as Wilko, Aldi and Lidl was described as “a basket case”, while the big grocers were shown as stable.

Despite the positive story for independent newsagents and convenience stores, challenges are also emerging.

Wren claimed the move towards more independ- ent shops joining symbol groups – which can control what titles get ranged in these sites – was making it harder for publishers to get launches and niche titles into independently owned stores.

Falling indie access to a full range of magazines is also being driven by publishers pulling copies from lower-sell-throughrate stores, such as smaller shops.

Wren told publishers that “taking copies out of the marketplace, that we know are less likely to sell is a huge, important part of making your newsstand sales more profitable”.

Asked about alloca-

Group managing director John Bardsley addressed publishers at Intermedia Live tions to independent shops, John Bardsley, group managing director of Intermedia parent company InterGo Group, told RN that distributors and wholesalers should support independents in receiving “their choice of range”, but added: “We have to match the objectives of the publisher with those of the retailer and sometimes those things can be different. It’s our job to make those objectives meet.”

Intermedia claimed magazines were becoming a ‘premium’ item and encouraged publishers to consider increases of between 50p and £1, rather than the usual 25p-35p.

Scottish papers increase prices

Two Scottish newspapers have announced price rises, but only one has protected retailer terms.

Reach’s Daily Record increased by 10p on every edition from 26 June with its 19% margin maintained, adding an extra 1.9p in retailer profit per copy.

Saturday editions now stand at £1.30 with the same 18.5% margin, add- ing 1.85p profit per copy.

The Sunday Mail will retail at £2.60 with the same 19% margin, adding 1.9p profit per copy.

At National World’s The Scotsman, RN understands prices will rise by 20p across all editions from 3 July, but retailer terms will be cut by 0.5 percentage points on most days.

Weekday editions will carry a £2.10 cover price and a reduced 22% margin, adding 3.45p profit per copy.

Saturday editions will rise to £2.60, with margins falling to 22%, adding 3.2p profit per copy.

Scotland on Sunday will cost £2.70,but margins are maintained at 22%, adding 3.05p per copy sold.

Even with the cuts, the National World brand’s terms sit above the national average, whereas Reach’s Daily Record’s terms are near the lowest.

Fed national president Muntazir Dipoti responded: “I urge other publishers to consider not only the effect these price increases have on their readership numbers, but also how retailers are affected by the cuts to margin.”