Independent retailers have been “stunned” by an announcement yesterday (Monday 21st September) from Menzies Distribution that it is increasing its carriage charge by an average of 1.5%.
The NFRN said it was “inconceivable” that at a time of continually low petrol and diesel prices and smaller volumes of newspapers and magazines, that Menzies could raise carriage charge for two thirds of Federation members.
The announcement follows a recent offer from Smiths News, after discussions with the NFRN, to freeze rates for its customers – a move welcomed by the newsagents’ group.
“Having advised that it was reviewing its carriage charge rates and making it perfectly clear that it would not consider any other option, Menzies has announced that more than 3,000 out of 5,000 Federation members are to have to pay more for their news supplies from the end of this month,” said NFRN Chief Executive Paul Baxter. “Such action is inconceivable and prompts me to ask if Menzies is looking to profiteer or could it have made a mistake with its figures? Either way I would ask it to review its plans immediately.”
In a letter to retailers sent out on Monday, Menzies Distribution claimed that this year’s charges achieved its objectives of “keeping the supply chain viable, whilst minimising the additional cost burden on our customers.”
The announcement, together with confirmation that the changes will take effect from Saturday (26th September), come a week after the NFRN renewed calls for greater transparency over charges and challenged both Smiths News and Menzies Distribution to come clean over the factors that determine them.
NFRN News Operations Committee Chairman, Ray Monelle, said: “Far too many retailers selling newspapers and magazines are close to or below the breakeven point. From next month there will be increases in the national minimum wage, quickly followed by the introduction of the Living Wage. With no alternative choice of supplier, news wholesalers have to realise that for retailers enough is enough and I insist upon transparency into how this retail tax is calculated.
“Not only that, we also want proof that Menzies is not recovering more than 100% of the actual cost of carriage.”
