Several moves in recent weeks suggest that magazine distributors Gordon & Gotch and Network services are reviewing small accounts with a view to cutting accounts that to not meet minimum sales criteria. While they have had thresholds for new accounts and in the past have review performance, I anticipate the review this year will be felt more widely.
Call it a conspiracy theory but I wonder if any such review and plan to reduce the number of smaller accounts related to the withdrawal of support and requirement for the previously mandated five day training course for new newsagents.
While there is active discussion among newsagents and their suppliers about the closure of newsagency businesses and what this means for the future of the channel, there has been little discussion about the support for the channel by core suppliers such as magazine distributors.
Magazine distributors continue to treat newsagents unfairly. They supply us using rules and processes established in the days of regulation yet our competitors are treated differently, in a de-regulated way. This creates an unfair playing field that newsagents have failed to have addressed.
While the ANF invests in a struggling bill payment platform, its member newsagents are facing more challenges from an old magazine distribution model that leaves their businesses uncompetitive in this slim-margin product category. And while on the ANF – any distribution account review should see newsagents treated the same as another direct drop account.
I’d encourage newsagents to share here if their account is being reviewed or has been cut.