The average newsagent stands to make approximately £56 extra profit next year due to pro-rata price rises on the i newspaper and weekend Daily Mail and Mail on Sunday editions.
The Daily Mail Saturday and Mail on Sunday will increase by 10p to £1.60 and £2.20, respectively.
The change gives stores an extra 2.15p gross profit per copy sold on Saturdays and 2.05p on Sundays.
Percentage terms and the 10p increases were the same on Scottish and Channel Island editions.
Meanwhile, the i will increase in price by 10p to £1 and iWeekend by 20p to £1.80, earning stores an extra 2.15p gross profit on Saturdays and 4.3p on Sundays.
The rises follow a recent refresh of the paper’s masthead and weekend-edition sections in late December.
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The changes combined are worth an extra £2.5m in profit per year across all newspaper retailers in the UK and Ireland, based on extrapolations of the most recently published newspaper sales figures.
While Daily Mail Group chose to protect retailers’ terms, Reach’s increases from 6 January, which add 20p to weekend Express, Star and Mirror editions, and 10p to Monday-to- Friday editions, come with percentage term cuts for retailers.
RN understands the change will cut 0.75 percentage points from what are already some of the lowest percentage margins in the industry.
Due to their higher cover prices, however, Reach titles often give better cash margins than their closest rivals.
The Fed attacked Reach for the move, describing it as “bang out of order”. The group said it will be writing to Reach’s shareholders and seeking a meeting with Reach CEO Jim Mullen to “express members’ fury”.
Fed national president Mo Razzaq added: “Its shareholders need to understand that with their declining sales, their titles are no longer the cash cows they used to be. What’s more, news retailers are struggling. Many will be unable to survive in business if publishers like Reach continue to accompany cover price rises with cuts to our terms.
“We need urgent talks because those at the top at Reach have to be aware some members will be remerchandising their shelves to put its titles at the bottom while others have told me they will delist them completely.”
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