The National Federation of Retail Newsagents has attacked Johnston Press over claims the publisher cut profit margins on 37 regional titles in the UK by up to 8 per cent.
In a release, the NFRN’s national president Alan Smith said:
Johnston Press has failed to acknowledge industry protocols in unilaterally slashing retailers’ margins, to the detriment of the regional press as we know it. If they think these cuts can be used to finance their online strategy without a fight, Johnston Press is gravely mistaken. We will be communicating these cuts to all of our members.
We will be asking what part wholesalers played in allowing this to take place. It is unsustainable to continuously slash retailer margins whilst simultaneously imposing carriage charge hikes. Such action sounds the death knell of the industry and publishers and wholesalers must start conducting their business in a sustainable manner if they don’t want the industry to fail.