The recently formed multiple group, National Newsagent Network (N3) has instructed wholesalers to cancel supply of the Star titles for its members until further notice. The move follows this week’s announcement from the publisher that halves cover prices and retailer margins.
Members of N3 have given autonomy to control their news supplies to the multiple company whose Board of Directors unanimously decided to delist. This follows approaches to Northern and Shell demanding a restoration of terms which were rejected.
Brian Murphy, N3 Director of News, said: “This is an unwilling step by N3 which has been created to improve the trading strength and profitability of its members. But at the same time, N3 is not going to stand idly by whilst publishers slash its members margins to fund price promotions.”
N3 Chairman, Ray Monelle added: “N3 is in the business of making money for its members and business partners by adopting the highest standards of retail to increase sales. But we are not a cash cow for publishers who want to use retailers to fund price wars on their competitors. Meagre retailer margins have to fund operating overheads, wages and ever-increasing carriage charges. Whilst this action is not our preferred choice of doing business, it was not a difficult decision for the N3 Board to delist titles offering uneconomic terms of trade.”
