Pro rata terms set out to News UK amid protests against retail margins cut
Talks have taken place between the Fed and News UK executives following protests by Fed members outside the company’s offices.
Dozens of Fed members gathered outside the newspaper publisher’s London and Glasgow offices as well as its print site in Merseyside in early July in protest about News UK’s plans to cut the retail margin on both The Times and the Sun at the same time as cover prices rise.
From Monday 14th July, the price of UK weekday editions of the Times will increase to £3.20. However, the new retail margin paid for each copy sold will not take effect until January 2026 and, even then, will drop 1%.
At the same time, all editions of the Sun will rise in price, with Monday to Friday editions increasing to £1.20. The Saturday edition will rise to £1.60 and the Sunday edition to 1.90. The margin on all editions will drop 1% to 20%.
Ahead of the protests, the Fed’s National President, Hetal Patel said: “Independent retailers are operating under intense financial pressures. When cover prices rise, pro-rata terms are a necessity for retailers to simply stand still.
“Reducing terms accelerates the decline in availability of newspapers to consumers and threatens the viability of the home delivered copy, which is a lifeline for the old, infirm and those without transport.
“Publishers have to take responsibility for the future of the news industry. That’s why we want News UK to reverse its decision and for the Fed to be involved in future discussions before any price changes go ahead.”
Hetal Patel, as well as national vice president Hemanshu Patel and director of news and operations, Brian Murphy were subsequently invited to meet with News UK’s director of retail and wholesale, Tracy Hart. During the 45-minute meeting, the Fed explained the impact that the move would have on members’ viability and the knock-on effect on local communities.
Speaking after the meeting, Hetal Patel said they had appealed to News UK to think again and reverse its decision to cut the percentage retail margin.
“We explained that members are being squeezed so much, that if publishers are not careful, there will be no retail estate left to sell its products,” he said.
“Pro rata terms are necessary if Fed members are to cover increasing overheads. Only by doing this can publishers ensure that independent retailers remain viable as news retailers.
“Ms Hart listened to our concerns and said she would raise them internally with News UK executive officers, ahead of a follow-up meeting.”
