Rise in paper cover prices are “destroying the news industry” – the Fed
Independent retailers have condemned Reach for using the festive period to try to sneak through cover price rises on its national, daily and weekly newspapers accompanied by a widespread cut in terms.
Mo Razzaq, the National President of the Federation of Independent Retailers (the Fed) said that penny pinching at a time usually associated with giving was “despicable”.
“Instead, Reach has decided to play Scrooge by taking money from the Tiny Tims of the industry who need pro rata terms to stand still,” he said.
“Such actions are bang out of order. Reach and its shareholders need to understand that with their declining sales, their titles are no longer the cash cows they used to be.
“What’s more, news retailers are struggling. Many will be unable to survive in business, if publishers like Reach continue to accompany cover price rises with cuts to our terms.
“This must stop. Such actions are destroying the news industry.”
He added that the Fed would be seeking a meeting with Reach CEO Jim Mullen and would be writing to shareholders to express members’ fury.
“We need urgent talks because those at the top at Reach have to be aware that some members will be re-merchandising their shelves to put its titles at the bottom while others have already told me they will delist them completely,” he added.
From 4th January, cover prices will rise on all of Reach’s national titles – the Mirror, the Express, the Star, the Daily Record and Sunday World.
