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Trade News Archive 2009 January February March April May
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1st May 2009
More than one British newsagent closing every day
Local newsagents across the UK are closing at a rate of more than one a day as they struggle to compete with the constantly rising numbers of supermarkets.
According to the National Federation of Retail Newsagents (NFRN), 510 of its members went bankrupt last year; this compares to 482 in 2007 and 527 in 2006.
The federation said that small newsagents are struggling in cities and in suburban areas.
Its head of news and magazines, Stejan Wojciechowski, warned that changes in the way the industry's wholesale suppliers operate could be "the final nail in the coffin" for a number of independent shops.
The NFRN is currently campaigning to have the Office of Fair Trading launch a new investigation into the newspaper wholesale system, which it claims has turned into a de-facto duopoly.
"Newsagents are already closing at an alarming rate because of competition from supermarkets which now operate in suburban areas," said Mr Wojciechowski.
"Changes in the newspaper distribution industry will only make things worse."
Earlier this month, business secretary Lord Mandelson ruled to abolish the newspaper code of practice, which had required wholesale distributors to supply newsagents with the papers they ordered.
Following that decision, the Association of News Retailing suggested that suppliers may be tempted to price "hard to serve" customers ordering low levels of stock out of the market.
(c) 2009
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