Fed condemns Observer retailer margin cut

The Fed has strongly condemned The Observer’s decision to cut the percentage margin paid to retailers as part of a cover price increase taking effect next month.

From the September 13 issue, The Observer will increase its cover price by 50p, from £4.50 to £5.00, while the retailer margin will fall from 22.5 per cent to 21 per cent.

The Fed has consistently called for newspaper retail margins to move back towards the 25 per cent levels that were once commonplace and remain standard for magazines, helping to ensure the category remains affordable and a valuable use of retail space for independent retailers.

Responding to the news, Fed National President Hemanshu Patel reacted with anger.

He said: “The Federation’s policy is clear and has been for a number of years. Retailers can no longer sustain or tolerate further cuts to the margin we receive from selling a publisher’s product.

“This move directly impacts members’ tills. We will lose 8p on every copy of The Observer sold following the margin cut. This may not sound like a lot, but when you take into consideration that Fed members sell approximately 25 per cent of all newspapers on a daily basis, it will soon add up.

“I am furious that The Observer would, firstly, take such a decision which risks further decline of a category we all work very hard to protect and, secondly, do so without any meaningful discussions with the Fed about the potential impact on members.”

The announcement comes little over 12 months after the Fed took action against cuts to newspaper retail margins, organising demonstrations outside key News UK sites. The protests helped secure subsequent margin freezes.

Adding to Mr Patel’s comments, chair of the Fed’s news operations committee Craig Etchells refused to rule anything out when considering the organisation’s response.

He said: “A little over 12 months ago, we took the decision to say enough is enough to margin cuts by organising demonstrations outside key News UK sites.

“We will meet as a committee as soon as possible to discuss our options in terms of a response to this news, but my message would be that all options are on the table. Members should be assured that we will put across their anger to The Observer.”

 

Allwyn to launch its first £4m top prize Scratchcard, double the current highest £2m Scratchcard jackpot

New £10 pilot game features four impressive £4m top prizes and pays 60p retailer commission

Premium-feel, metallic ‘When It’s Gold Outside’ is a great gift suggestion

13 August 2026: National Lottery operator Allwyn is preparing its retail partners for the fantastic sales opportunity with the brand-new ‘When It’s Gold Outside’ Scratchcard. The game, which offers the biggest Scratchcard jackpot since Allwyn took over running The National Lottery, will start landing in stores early next month.

The £10 game, which will initially only be available in selected stores, offers 37 chances to win on each individual card. ‘When It’s Gold Outside’ has been specially designed as a premium-feel larger format Scratchcard, with metallic gold details to maximise in-store standout. The game, which comes in a pack size of 30, also pays 60p in commission for each Scratchcard sold.

With four top prizes of £4m on offer, ‘When It’s Gold Outside’ will be on track to make four new National Lottery multi-millionaires. It also has a strong concentration of lower-tier prizes (£10, £15 and £20), as well as plenty of other wins – ranging from £50 to £500 – that can be paid out in stores, giving retailers the opportunity to earn additional commission.

Allwyn will support the launch through in-store activations and marketing activity designed to maximise visibility and drive engagement, including via digital poster sites in direct proximity to stores selling the game. As Christmas draws nearer, the marketing will shift to feature the game as part of The National Lottery’s festive gifting campaign.

Nikki Vadera, Director of Scratchcards at Allwyn, said: “We’re delighted to be enhancing our National Lottery Scratchcards offer with this truly standout game. ‘When It’s Gold Outside’ is being specifically ranged from September onwards to benefit retailers in the lead up to, and during, the festive period. And we’re supporting the new game across a number of marketing touchpoints, including in-store activations to enhance the launch.

“The quality look and feel, paired with the generous game-play and prizes on offer, make ‘When It’s Gold Outside’ the perfect gift or special treat for retailers to suggest to their customers. We’re really excited to see how this pilot performs for our retail partners, as we continue to do all that we can to help them maximise their sales alongside returns to National Lottery Good Causes.”

As part of its preparation work with retailers who will be stocking the new £10 game, Allwyn is carrying out face-to-face visits and sending communications about responsible retailing duties. This includes reminding retailers that a maximum of 10 Scratchcards can be sold to each customer in a single visit, as well as explaining that mystery shop visits will continue take place to support retailers in maintaining high standards.

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