Magazine article Marketing

Tesco Deal Jeopardises Newsagents

Magazine article Marketing

Tesco Deal Jeopardises Newsagents

Article excerpt

Thousands of small independent newsagents would be driven out of business if Tesco strikes an exclusive national distribution deal with WH Smith; claims a report published this week.

The report suggests that as many as 12,000. newsagents could face closure if the Tesco WH Smith pact goes ahead.

The deal would see the supermarket receiving all its magazines from WH Smith News. But the report says it would leave smaller retailers facing much larger bills for national distribution -- with a total increase in costs of almost [pound]20m a year.

The report, called 'The Impact of Proposed National Distribution Development on the UK Magazine and Newspaper Market, was commissioned by the Newspaper Publishers Association (NPA) and carried out by Professor Paul Dobson of Lough-borough University.

Dobson concludes that between 6000 and 8000 newsagents would go out of business if the deal is agreed, with numbers rising to 12,000 if newspapers were later included in the agreement. …

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