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The Federation of Independent Retailers (NFRN) has renewed calls for a review into fairness in the news supply chain after owner Reach announced that forthcoming cover price rises on the Sunday Mirror and Sunday People will be accompanied by a cut in retail terms.

From this weekend the price of the two titles will rise 10p to £1.80 with the percentage terms that retailers receive adjusted from 20.5 per cent to 20 per cent.

NFRN National President Stuart Reddish said independent retailers were disappointed with Reach’s move.

“Time and again we have made it clear to Reach that we cannot continue down this line of a cut to the retailer’s percentage terms every time there is a price increase. Now, more than ever, independent retailers are operating under intense financial pressures and pro rata terms are a necessity if retailers are to stand still. Reach’s actions are short-sighted.

“We don’t accept terms reductions accompanying price increases but we have to live with them, whilst ever the news industry operates as a monopoly,” he continued.

“If the newspaper sector is to survive the whole industry must look at the way it is set up as it is unfair to continually chip away at the retail margin whenever there is a price rise.”

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