Independent retailers have reacted with dismay after learning that the Daily and Sunday Telegraph cover prices are rising from Monday (7 March), but that the ‘improved’ margin will not be paid to them until the beginning of September.
From Monday, in England, Scotland and Wales the weekday cover price will rise by 30p to £2.80; the Saturday newspaper is going up 50p to £3.50p, and the cost of the Sunday Telegraph will be £3.00.
The publisher has also decided that from September the percentage terms that retailers receive for handling the publication on weekdays and Saturdays will be reduced to 20%. The margin for handling the Sunday edition will be maintained at 20.5%.
NFRN National President, Narinder Randhawa, said: “While the cover price increases are welcome, we are disappointed that, once again, the Telegraph is hitting retailers in their pockets with yet another cut to our percentage trading terms.
“Despite repeated conversations with the Telegraph, we are equally dismayed that any ‘improvements’ to our margin payments are being delayed for six months.”
He added: “This annual cycle of terms cuts and deferred payment needs to stop. It leaves a sour taste in retailers’ mouths. We would politely ask Telegraph Media Group to reconsider on both the terms and deferred payment fronts.”
Randhawa said: “Decisions like these leave me to question my commitment to the news category. It is time that publishers like TMG understand the precarious financial position that moves such as these make to our members. It is also time that the Telegraph looks to other categories in our members’ stores that work with us in true partnership.”
The Fed head of news, Brian Murphy, said: “While many members do support the Telegraph’s subscriptions first strategy, they still have a number of customers who prefer to purchase their newspaper in the more traditional manner. It is unfair to expect these retailers to wait six months to be paid for this.”
