The NFRN, which represents newsagents and convenience store retailers, slammed the company, warning that the rise could well be self-defeating as retailers throughout Ireland are forced to consider the impact on their businesses and decide whether the meagre profits they are left with make it worthwhile to stock this wholesaler’s titles.
The NFRN also revealed that it would be forwarding details of the hike in delivery charges to the Office of Fair Trading to show once again how news wholesalers abuse independent retailers.
Northern Ireland District President James Simpson said: “At a time when many independent newsagents are struggling to survive, this hike in charge is a step too far. Newspread may believe that it can ride roughshod over independent newsagents but many will now be thinking that enough is enough and will be refusing to accept the titles that Newspread deliver to their stores.”
And he added: “We will be making the publishers who use Newspread to distribute their titles aware that such a hike in charge is totally unacceptable. As their sales are at risk, it is time for them to intervene before retailers decide they simply can’t afford to pay the carriage charges anymore and cancel their supply.”
The NFRN is also demanding that the Newspread board explains:
1. Why the increase has even taken place? With Newspread making fewer deliveries now that one of the main newspapers, the Belfast Telegraph, no longer requires a lunchtime distribution, how can it be fair that a retailer with the same turnover as another, yet who receives fewer deliveries, is forced to pay the same charges? There is no logical explanation, says the NFRN.
2. Why retailers weren’t told about this in advance? It is not acceptable to hear about the increase once it has taken place via an invoice rather than to be involved in discussions beforehand. Does Newspread consider retailers as valued business partners or merely as serfs and cash-cows that it can just raid whenever it likes? This is the unacceptable face of monopoly.
3. Why the big secret? All other news wholesalers are transparent about the carriage service charge templates that they use yet Newspread will not publish its template. If retailers are to have no choice of wholesaler, it is not unreasonable to demand openness and an explanation of how charges are calculated so that retailers can see they are fair and reasonable and that they are not being ripped off. The implication of secrecy suggests retailers have a legitimate reason for being unhappy.
4. Why these charges are so much higher than those from the other newspaper and magazine suppliers?
NFRN National President Alan Smith (pictured) said: “At a time when fuel prices continue to drop and retailers are getting fewer deliveries this should have been a decrease to our members and not an increase. We are representing our members’ position and fully supporting them on this matter. We are calling for a reversal of this decision and urging publishers to have a good look at the damage this action could do to their businesses.”
