Reacting to news that wholesaler Menzies Distribution will implement a 3.5% increase in carriage charges in April, the Federation of Independent Retailers (NFRN) described the move as “a bitter blow” to members already struggling with soaring bills and the upcoming National Insurance increase. 

National president Narinder Randhawa called on wholesalers to instead charge the newspaper publishers “who not only control cover prices but the margins across the whole industry too”.

He also floated the idea that retailers could effectively take control of the price and margin by covering up the RRP on the front pages of both newspapers and magazines “setting their own cover price”.

He said the increase could push even more independent retailers into dropping the news category altogether, in favour of products that offer “enhanced margins and that demand less time and effort being spent on them”.

Randhawa said that at the NFRN’s recent summit, wholesalers and publishers had been reminded that retailers have not seen an increase in payments for inserting supplements or handling vouchers for many years. 

“Having listened to our concerns about these paltry payments, it is baffling that just a few days later we are told that the carriage charge is going up. There is no justification, especially as Menzies is failing to provide all members with a high level of service,” he stated. 

The Menzies Distribution carriage service charge (CSC) increase comes into effect on 4 April. 

A Menzies spokesperson told Printweek: “Menzies is committed to its role in the newstrade end-to-end supply chain. The logistics sector is facing a number of well-documented challenges which are impacting the costs directly associated with the delivery and collection of newspapers and magazines.

"Whilst we are able to drive out some costs within our operations, there are wider economic influences outside of our control, including; a National Living Wage increase of 6.6%, Freight Transport Association index increase of 5.7% and CPI increase of 5.5%."

Menzies said it had worked hard to minimise disruption caused by the Covid-19 pandemic, "which included a freeze of CSC in 2021".

"We have also worked hard to keep any increases this year well under the current rate of inflation, as well as maintaining a cap on weekly increases for retailers. The average increase for independent retailers is 2.08%."

The NFRN is one of Europe’s largest retail trade associations with more than 15,000 stores in membership across the UK and Ireland.