NFRN National President Kieran McDonnell said: “I am absolutely appalled that Smiths News should decide to ratchet up its carriage charges when many of its retail customers are already struggling financially. This action epitomises the unacceptable face of monopoly when a wholesaler uses its absolute power, gifted by virtue of its exclusive territory contracts with publishers and distributors, to force retail customers to pay for its own rising costs.
“In an industry where sales are in long-term decline the only way the industry can earn extra revenue to meet increasing costs is if publishers (who have control over cover prices) charge a viable price for their publications that generates sufficient revenue to cover the costs involved in getting their products to market.”
“So why are Smiths News putting up their carriage charges rather than re-negotiating an improved margin from the publishers? The simple answer is – ‘because they can’ - knowing that retail customers have no choice to bow to this ‘extortion’ or face losing their supply altogether.
“Once again we are being put on by a supply chain that thinks that exploiting retailers, who are a vital link in the chain with consumers, is the way to go. Isn’t it about time we had some serious discussions about an alternative way of funding wholesalers instead of just putting more and more independent newsagents out of business?”
