Shell is planning to axe newspapers from at least 200 forecourts in a major blow to wholesalers, Better Retailing can reveal.

A senior source at a UK publisher confirmed they had been notified of Shell’s intention to remove the newspapers from a number of its sites. The news comes just six months after maga­zines were removed from all 350 Shell sites still stocking the category.

At the time, a spokes­person for the company told Better Retailing there were “no material plans” to also remove newspapers. They explained national and regional ranges would continue to be offered at all stores.

Now, however, Better Retailing understands newspapers are to be pulled from a large number of Shell’s operator-managed Shell Select stores. Standard industry contracts would suggest the ranges being removed in late January or early February.

The move puts pres­sure on wholesalers. Carriage charges are said to be making newspaper and magazine categories unprofitable in large numbers of fore­courts. This is because they typically have lower newspaper sales.

The loss of newspapers means most of these sites will cease supply from Smiths News and Menzies.

How much will it cost newspaper wholesalers?

Better Retailing estimates the move will cost both wholesal­ers a combined £600,000 per year in lost carriage charges alone.

At least one other large forecourt group is considering axing newspapers and magazines, according to a senior industry figure. Another said wholesal­ers’ models are “built on carriage charges”. This mak­es them “much more vulnerable to retailer exits of the category than anyone else”.

They added: “Publish­ers seem to think people will buy a copy else­where, so they view this as more of a wholesaler problem. Especially as many of these are rela­tively low-volume sites.”

What could forecourts exiting the category mean for stores still stocking newspapers?

Retailers near Shell stores could potentially benefit from an increase in trade if customers do go looking elsewhere for their regular purchases.

Referencing the num­ber of forecourts exiting or considering exiting the category, a publisher source predicted it could provide “stronger sales to those remaining in the category”. They added that while the fall in carriage charges will be signifi­cant for wholesalers, it “could cut unsolds” for publishers.

They also told Better Retailing that “a contraction in the number of stockists has been predicted for a long time”.

News UK’s ‘Re-engag­ing with Retail’ report, leaked to Better Retailing’s sister title RN in July, said that petrol stations would probably be the first to remove news­papers and magazines. The report described it as an “existential crisis” for the industry.

Shell refused to com­ment when approached by Better Retailing.

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