All tricks and no treats for store owners this Halloween, says The Fed
THE Federation of Independent Retailers (the Fed) has strongly condemned the move by Newsquest to cut the percentage margin to retailers as part of price increases on The National and The Herald in Scotland.
Despite previous discussions with the publishing firm on the importance of maintaining at least 18% margin to ensure retailers would at least break even this year, Newsquest’s American-owned parent firm, Gannett Media, has made the move to cut margins to as low as 16.7% on some titles.
Responding to this move, Hetal Patel, national president at the Fed, said: “The Federation has stated a policy of pursuing margin increases to protect the viability of News for members, this move directly flies in the face of this aim and is unwelcome.
“This move now means hard working retailers are expected to devote space and time to loss-making titles. I strongly encourage Newsquest to review this decision and get around the table for discussions on a way forward, and perhaps best avoid demonstrations taking place.”
Andrew Williamson, news category manager at the Fed, said: “Gannett, the American company which ultimately owns Newsquest, has made this decision from their ivory tower and this move is a further step on a slippery slope for them and their titles.Â
“It is clear Newsquest understand that this move will generate severe frustration and a reaction from retail. Giving retailers less than 48 hours’ notice of a cut to their terms is underhanded and not the behaviour we nor our members expect in a professional trading relationship. Newsquest need to look closely at themselves and their behaviour in this matter.”
