It’s my view that unless there is significant change requirements on newsagents regarding magazines, newsagents are likely to reduce their interest in and support of the category.
With supermarkets benefiting from scanned based trading, saving hours on arrivals and returns per week per store, not having to cover the cost of shrinkage and not having to pay for the right to get access to electronic invoice data, newsagents are competitively disadvantaged.
How do you feel knowing that your biggest competitor in the magazine category has trading terms that are significantly better than yours? I know of some newsagents who have quit the category because of this.
So, I have a question for you. I’ll keep it general and start with what we have today. If nothing changes do you plan to keep your magazine commitment as is, increase or decrease?