Menzies Distribution is to increase its carriage charges by an average of 3% from April.
The rise takes effect from 6 April, just days after the mandatory national living wage for employers aged 21 and over increases by nearly 10% and without any consultation with Menzies’ retail partners.
In response, the NFRN’s National President Muntazir Dipoti, said: “This morning, retailers served by Menzies Distribution have received a letter from its managing director Grant Jordan which begins by saying that ‘Menzies is committed to providing a quality, reliable and sustainable service for our newstrade partners’.
“Sadly, our members would say that there is no clear evidence of a ‘a quality and reliable’ service and continual increases to carriage charges year in and year out are not sustainable for independent news retailers.
“The letter cites significant economic pressures, including rising labour costs, which Mr Jordan says Menzies is unable to absorb, yet that it something that it expects its retail partners to do, as we cannot pass increases in carriage charges to our customers.”
Menzies Distribution has since advised that the carriage charge increase will be capped at £4.99 per week for customers in the highest bands in its carriage charge template.
Dipoti added: “While it is good news that some customers will see the increase capped at just under £5 a week and that some retailers in the Republic of Ireland have seen their charges frozen, there appears to have been little other consideration for smaller news stores who continue to support the news category despite concerns about its profitability.”
