The NFRN, the newsagents’ association, has warned that some independent retailers could decide to drop newspapers or even sell them at a higher price as a result.
The carriage charge rise is due to take effect from 4 April, just three days after the mandatory national living wage for employees aged over 23 increases by 6.6% and amid soaring utility bills.
The NFRN’s president, Narinder Randhawa, said: “This is a bitter blow for Menzies Distribution’s retail customers, as it comes at a time when our costs are spiralling out of control.
“Where are retailers supposed to find the cash to fund this increase? Wholesalers should be going to the publishers who not only control cover prices but the margins across the industry too.”
Randhawa warned that this latest increase could push more independent retailers into dropping newspapers completely in favour of products that offer better margins and demand less time and effort.
Alternatively, others could take control of the price and margin, by covering up the marked price on the front pages of both newspapers and magazines and setting their own cover price.
Randhawa continued: “Quite rightly, all wholesalers decided to freeze their charges during the pandemic in recognition of the torrid time that retailers were facing.
“Sadly, very little has changed and many members continue to struggle financially.
“Menzies Distribution’s management also has to recognise that it is impossible for retailers to pass these extra costs on to their customers.
“What is particularly disappointing is that the charge was announced just days after the Fed’s positive and successful summit, which was attended by both news wholesalers and national newspaper representatives.
“During the summit, all parties were reminded that retailers have seen no increases in payments for inserting supplements or handling vouchers for many years.
“Having listened to our concerns about these paltry payments, it is baffling that just a few days later we are told that the carriage charge is going up.
“There is no justification, especially as Menzies is failing to provide all members with a high level of service.”
