The price increases on both publications will result in the percentage profit margins reducing at retail level, says the NFRN.
National President Ralph Patel said: “Whilst these price increases will put some extra pennies into our members’ tills, the reality is that the percentage margin is being reduced on a fix priced product and this will lead members to further question why retailers are picking up the tab for an inefficient and monopolistic supply chain that is struggling to justify its online ventures.”
Mr Patel continued: “Others in the supply chain clearly benefit more from these price rises and whilst today newspapers are still a core category, this is changing. Through declining sales and a drive to online versus a backdrop of increasing operating costs at retail, the category is, unsurprisingly, becoming less important to many and there is a clear and present danger that in a growing number of stores news will no longer get the priority nor the prominent position that it has enjoyed to date.
“We are, therefore disappointed that rather than addressing the fundamental issues that exist in the supply chain, the quality newspapers have decided to take a headless chicken approach and follow the lead set earlier this year in the mid and tabloid markets with cover price rises accompanied by margin reductions.
“This short term gain for publishers will only accelerate the decline of the print industry.”
