Independent retailers’ anger over deferred Times profit margins

Independent retailers’ anger over deferred Times profit margins

The decision by News UK to reduce newsagents’ profit margins for six months has been criticised by The Federation of Independent Retailers (The Fed).

The move is part of increases to the cover prices of The Times and The Sunday Times.

From Saturday 10th June weekday copies of the Times will increase in price from £2.50 to £2.80.

The Saturday edition will go up in price from £3 to £3.50, while the Sunday Times will rise from £3.50 to £4.

However, the current retail margin paid for each copy sold, either through subscriptions or over the counter, will be reduced and will not return to percentages equivalent to current levels until 9th December.

The Fed’s National President Jason Birks said: “It is very disappointing that News UK has chosen to penalise its most loyal trading partners by cutting percentage margins and deferring a return to current levels for six months.

“It is totally wrong to delay paying retailers their fair dues, particularly on countertop sales where there is no justification for delaying the increase.

“Once again, news retailers are losing out while helping to swell the coffers of the publishers.”