Trade structure

The magazine distribution chain consists of five levels, starting with the publisher, through distributor, wholesaler, retailer and consumer.

There are approximately 2,600 regular frequency consumer magazines handled by the retail supply chain, generating around £1.9 billion in retail revenue.

Most publishers use a distributor to oversee newstrade distribution and trade marketing. The copies then pass through a network of wholesale depots. Currently publishers/distributors appoint the wholesalers to handle all retail distribution within exclusive geographic territories. The major publishers/distributors go through a tender process every few years before agreeing formal contracts with the wholesalers involved. There are two main wholesalers, Smiths News and Menzies Distribution. The wholesalers are responsible for the physical distribution to all 55,000 retail outlets. 

Publishers/distributors will discuss marketing and promotional activity directly with retailers, but it is currently the wholesaler who agrees the retail terms, not the publisher.

Retail supply chain

The main priority in the retail distribution of magazines is to ensure the right product arrives in the right quantities at the right time to ensure optimum efficiency, availability - and of course sales.

Magazine distributors are using increasingly sophisticated allocation systems to target copies and are also working with wholesalers to develop Sales Based Replenishment (SBR) techniques to improve the availability of magazines and to reduce the level of unsold copies.

As a result of efforts across the whole supply chain, the level of unsold magazines dropped from 37.1% in 2007 to 36.9% in 2008, the lowest figure on record. More information on magazine unsolds can be found on the Joint Industry Group (JIG) website. 

Technical Services Panel (TSP)

PPA’s Technical Services Panel is tasked with addressing a range of operational issues relating to the magazine supply chain, including:

  • EDI & other e-business development
  • Affidavit credit claims systems & auditing 
  • Monitoring the ‘secure waste chain’ for recycling processed magazine unsolds 
  • Evaluation of wholesalers’ & other industry operational systems industry technical guidelines 
  • Participating in industry JIG developments 
  • Acting as liaison for joint development with ANMW, NewPET and other industry groups

Useful publications

Retail marketing & the Retail Marketing Group (RMG)

There are currently around 55,000 retail outlets stocking magazines and most consumers have a repertoire of shops that they buy their magazines from.

The retail market for magazines is fast-moving and over the longer term has shifted towards the supermarket and convenience store sectors away from the more traditional High Street and CTN formats.

Tesco is currently the largest single magazine retailer, accounting for 14% of sales.

The remit of PPA's Retail Marketing Group (RMG) is to promote the benefits of the magazine category in order to protect newsstand space and drive copy sales.

The context in which the RMG operates is a retail environment where display space for the magazine category and sales of magazines is coming under increasing pressure at retail.

One factor contributing to this is the growth in other non-food categories in the large multiple grocery retailers which poses a real threat to the amount of space allocated to the magazine category. The economic downturn has also seen a reduction in launch activity and trade marketing promotional spend.

The RMG is driving forward a number of projects:

  • ‘The Power of Magazines’ – a work stream utilising existing shopper and consumer research to develop a compelling case for the magazine category. Click here to download the presentation
  • Developing the magazine category – the current project in this area is looking at ways to maximize Shop save and Home News Delivery (HND) opportunities through the independent retail sector
  • Strengthening the relationship with the major retailers. One means of doing this will be through a Retail Forum which will engage and educate senior retail representatives about the magazine category and inform them of the Retail Marketing Group priorities. 

Just Ask! - Shop save scheme

The Just Ask! scheme:

  • Encourages consumers to order magazines
  • Increases consumers’ awareness that any magazine can be ordered 
  • Makes it easy for consumers to see where they can order magazines
  • Provides a common brand for promoting magazine ordering
  • Uses magazines to raise awareness of the initiative to encourage retailers to participate

Publishers can support the campaign in the following ways:

  • By placing the Just Ask! logo onto the front cover of each and every issue
  • By including an in-mag ad with newsagent order form in each issue with the Just Ask! logo
  • By including details on Just Ask! on magazine websites to help raise awareness that the magazine is available on the newsstand as an alternative to a subscription
  • By including Just Ask! details on all forms of advertising being undertaken to increase circulation

The key is to advertise the scheme as widely as possible and for this to be a sustained campaign.

A Shop Save scheme such as Just Ask! provides the following benefits:

  • The newsstand equivalent of a subscription
  • Helps to alleviate the pressure on shelf space 
  • Reduces the risk of unsolds
  • Increases the frequency of purchase and consequently the sales of titles involved
  • Offers a real alternative for a regular order if a subscription is considered unaffordable
  • Helps retailers to effectively increase the range of titles they sell
  • Increases the proportion of regular readers for your magazine which should be attractive to your advertisers
  • Supports the role of the local, independent retailer, as well as the larger multiple groups

To download one of the following Just Ask! logos right click on the image and select 'Save target as'.

                


To download the Just Ask in-mag ad click here

Joint Industry Group (JIG)

The Joint Industry Group (JIG) is a cross-industry body that was formed to promote best practice up and down the newspaper and magazine supply chains.

Members of JIG include PPA, the Association of Newspaper and Magazine Wholesalers (ANMW), the Newspaper Publishers Association (NPA), the Association of News Retailing (ANR), the British Retail Consortium (BRC) and the National Federation of Retail Newsagents (NFRN).

JIG was created to address the industry's own problems via self-regulation rather than regulatory intervention.

For more information on JIG, please visit the Joint Industry Group (JIG) website.

Supply chain issues in Ireland

An historic new Code of Practice for Irish retailers has been launched following cross-industry discussions in which PPA played a key role. The Code of Practice for the Press Industry (COPPI) outlines the level of service that publishers and wholesalers will provide to retailers in Ireland in areas such as delivery, supply management and unsolds returns management. The aim is to bring greater efficiency to supply chain operations and with it, significant environmental benefits.

COPPI (Available as a PDF here) has been developed by the Irish newstrade’s Joint Industry Committee, whose role is to facilitate debate across all parts of the supply chain and with Government, and of which PPA is an important member.

Magazine sales in Ireland offer an important opportunity to PPA members. The Irish market comprises of approximately 5,000 retailers and the retail estate has a large number of independent and C-Store outlets. Environmental considerations are strong – there is currently no paper recycling plant in Ireland.

A document has been prepared for members, Green Issues in the Emerald Isle outlining the key issues and we would ask PPA members to work to its guidelines.

For further details contact Nicola Rowe at PPA.