Independent convenience stores are losing significant sums every year from refused magazine returns, analysis by Better Retailing suggests.
The data from the first 19 weeks of 2024 is based on approximately 1,500 independent retailers. It reveals losses are often caused by retailer error and difficult-to-match magazine names and covers.
Across all titles stocked, the 1,500 stores suffered an average of £12,517 in refused magazine credits per week. That’s equivalent to £8.32 per store.
‘Special’ editions dominated the top 27 consumer titles with the most refused returns. The trend is attributed to unclear descriptions on retailers’ recall notices.
For instance, OK Special, one of the consumer titles with the most refused credits at the beginning of 2024, previously featured masthead titles such as ‘Strictly Come Dancing’. These titles do not match the recall notice.
Refused magazine returns are often caused by retailers being caught out by confusing cover layouts
On children’s titles such as Lego Special Edition, Ultimate, Disney Stars and Everything, the recall notice name appears much smaller than the main title name printed on the cover.
Mark Dudden, of Albany News & Post Office in Cardiff, explained: “Retailers are simply caught out. Publishers change the cover to a completely different name and by the time retailers realise, it’s too late.
“The real title can be written next to the barcode or at the top so small you need a magnifying glass to read it.
“Stores need to check every copy every day. If it’s a staff member doing it, you need to check their work. Some of them are £10, you can’t afford to take that hit.”
Solutions are available to help retailers keep track and avoid refused magazine returns
Supermarkets were understood to have faced the same issues around refused magazine returns. Their losses were so great that during the pandemic a change was made allowing them to pay for copies sold, not copies returned. They did this using tools such as Rascal and Foreman.
Rascal managing director Jonty Edwards told Better Retailing: “We’ve known there would be a problem, but the data just wasn’t available to know the scale of it for independent retailers.
“We have the technology and data to look at the potential solutions.”
Better Retailing understands the Fed has worked with publishers this year to address the challenge. This led to significant reductions in refused returns on some titles.
The remaining three titles in the top 30 where stores are often refused returns were trade titles – Better Retailing’s sister title RN magazine, The Grocer Special and The Grocer.
Stores are given a sale-or-return trial of RN and are moved to firm sale if the retailer keeps the copies. Letters are sent out explaining the trials. Retailers can cancel RN at any time.
Read more news and advice about the newspaper and magazines category and click here for the latest ABC circulation figures
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