Tricks not treats for Scottish Retailers this Halloween

31/10/2025

The Federation of Independent Retailers today strongly condemn the move by Newsquest to cut the % margin paid to retailers as part of a price increase on the National and Herald in Scotland, in what can only be described as a Halloween trick and kick in the teeth for retailers in Scotland.

Despite previous discussions with the Publishing fraternity on the importance of maintaining at least an 18% margin to ensure retailers would at least break even earlier this year, Newsquest’s American owned parent company, Gannett Media, have decided to ignore this and cut margins to as low as 16.7% on some titles.

Responding to the move, the Fed’s National President Hetal Patel was particularly angered, stating: “The Federation has stated a policy of pursuing margin increases to protect the viability of News for members, this move directly flies in the face of this aim and is unwelcome.

“This move now means hard working retailers are expected to devote space and time to loss-making titles. I strongly encourage Newsquest to review this decision and get around the table for discussions on a way forward, and perhaps best avoid demonstrations taking place.”

News Category Manager, Andrew Williamson, added: “Gannett, the American company which ultimately owns Newsquest, have made this decision from their ivory tower and this move is a further step on a slippery slope for them and their titles. 

Further commenting on the short notice given to retail, Mr Williamson added: “It is clear Newsquest understand that this move will generate severe frustration and a reaction from retail. Giving retailers less than 48 hours’ notice of a cut to their terms is underhanded and not the behaviour we nor our members expect in a professional trading relationship. Newsquest need to look closely at themselves and their behaviour in this matter.

Brian Murphy, Director of News & Operations, added: “We will be seeking an urgent meeting with Newsquest to discuss this situation, while we fully appreciate that it has largely been made in offices in New York, we feel it is important that circulation and financial managers at Newsquest are given the opportunity to hear first hand the financial impact this will have on some of their key retailer partners – without whom they would not survive – so that they can relay this feedback to their overlords in America.”

Craig Etchells, Chair of the Federation’s News Operations Committee, was keen to stress the importance of representation for our Scottish members. “This frankly disgraceful terms cut will have a huge impact on our members in Scotland,” he said. “It is important that they know that the full weight of Federation support is behind them in opposing this cut in the strongest possible terms.”