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NFRN anger at Reach’s cut in terms

The NFRN has expressed disappointment that at the same time that newspaper publisher Reach is increasing cover prices, it is adjusting the percentage margin that retailers receive to as little as 20 per cent.

NFRN anger at Reach’s cut in terms
Stuart Reddish: “This will bring with it a host of issues.”

With effect from December 30, says the NFRN, the price of the weekday editions of the Daily Express rises to 70p. With the percentage margin cut from 22 per cent to 21.4 per cent, retailers will now receive 14.98p for every copy sold. From January 4 the Saturday Express will cost £1.10 and the cut in margin from 20.6 per cent to 20.2 per cent means stockists will receive 22.22p. The following day (January 5) the Sunday Express will rise to £1.70 in price, and with the percentage margin adjusted to 20.2 per cent, retailers will see the pence per copy margin move up to 34.34p.

On the same dates, says the NFRN, the Daily Star will rise to 50p for weekday editions, 80p for Saturday editions and £1.20 for Sunday editions. The percentage margin will drop to 21.4 per cent for the Monday to Friday editions and 20.2 per cent at the weekend. This means retailers will be paid just 10.70p for each weekday version they sell and 16.16p for Saturday editions and 24.24p for the Sunday paper.

The margin on the Saturday Daily Mirror, however, will fall to a new record low of 20 per cent from January 4 2020. As a result, retailers will receive 28p for every copy sold.

Commenting, NFRN National President Stuart Reddish described the move as “extremely disappointing”.

He said: “While these price increases will result in more money through retailer's tills, which we welcome, this is the second time within a year that Reach has increased cover prices for the Daily Express and Star and further reduced the percentage margin that retailers receive. This, coupled with the cut in margin on the Daily Mirror, sadly also comes at a time when we have been finalising plans to promote their printed products to their readers through our vast membership of retailers and this will bring with it a host of issues."