As I noted recently, PMP, the parent of magazine distributor Gordon and Gotch is doing it tough, having just announced a profit downgrade.
We know that Gotch has embarked on another round of trimming staff.
Add to this an apparent retreat from engagement with newsagents. Two years ago the company had an excellent reputation of working with newsagents in pursuit of fairer supply. Last year while some in the company maintained a façade of engagement, actions did not match the words. This year, from what I can see, even the words are in retreat.
While Network Services is investing in systems to improve service, Gotch is still using old systems which fail the company if you look at some recent events. Network has a Sales Based Replenishment program in place, Gotch has nothing despite claiming that they would have SBR running by now.
One thing Gotch is good at is spin from the highest levels of the company. They spin to publishers and get them under a spell that comments I make here and complaints from other newsagents are wrong or a mis understanding. Hmm, no, no misunderstanding. Gotch is in trouble and this is affecting magazine sales.
From a newsagents perspective, we let Gotch get away with a sub standard service. We complain but don’t act on the complaints. This just serves to weaken the company.
Something has to give. The current situation leaves magazine publishers and newsagents very poorly served.
In the last 2 years Gotch has behaved as described above. However if Gotch closes then we are left with one major distributor Network and a minor IPS. This I believe would not be desireable situation for Newsagents.
Don’t worry about Gotch closing, if anyone folds it’ll be Network. ACP owns Network and ACP are for sale, Pacific are looking at ACP. If that happens, then Pacific and Gotch (owned by PMP) who are both owned by the same parent will shut Network down.
The other option is ACP sell off title by title… Network may also be for sale? Who do you think will buy them? My money is on PMP, if you can’t beat them then buy them out!
One thing is for sure, it’ll be an interesting and challenging year for all.
IPS have an amazing opportunity to pick up the pieces and make something of themselves. The question is to the have the people and the balls to do so? IPS time to act is now.
Funny, I decided some time ago to end my relationship Network because they wouldn’t work with me. IPS are new and still not on my list of long-term suppliers with a very limited appeal. However Gotch has, with a lot of my effort, allowed a turnaround making magazine sales better than break even in our small newsagent.
Tim, I’m just interested how you go with no TVweek, WD, AWW, Take5 etc if you do not deal with Network?
From my point of view “IF” we lost GG then my weeklies would stay about the same but if we lost network titles altogether we would see no sales.
Buy some (i.e. WD, AWW, Take 5 usually slightly late direct) but most customers can find more than enough to choose from (i.e. move more New Idea, etc than used to) To be perfectly honest, I would rather have kept those magazines, but Network wouldn’t offer the selection I wanted. As I said, the newsagency title is by history and hasn’t been profit making since I have been here.
I can’t understand why you are always so down on G&G. I have less problems with them than Network.
Sorry to here that Tim, but you are not alone in having a hard time, we have not seen good trade for the past 24 months. You seem to be doing all you need to in order to outlast the doom.
For us, G&G were always the good guys, until the last half year before becoming subbies. They changed overnight, which was sad, because Network were always the bad guys to us. G&G’s change in behaviour hastened our decision, which turned out to be the right one.
But beware, it will be hard to get your money back out of Gotch. It took us months before the account was settled.