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The magazine market

The consumer magazine market consists of more than 3,000 titles, generating approximately £1.6bn retail revenue. In this dynamic market, competition is not only fierce but is increasing.

Every year, there are more than 1,000 proposed new magazine launches of which as few as one in three makes it to publication and the newstand. Launching a magazine is a highly competitive business, and sustaining it even more so: of approximately 350 new titles which are launched each year, only half become established magazines.

The pressure on shelf space for magazines at retail is a continuing challenge which has led to many retailers restricting their ranges to include only the most profitable titles for their customer base.

The magazine distribution chain consists of five levels from publisher through distributor, wholesaler, retailer and consumer:

• Publisher
• Distributor
• Wholesaler
• Retailer
• Consumer

There are approximately 185 wholesale houses, the majority of which are owned by one of the three major wholesale groups, WHSmith, John Menzies and Surridge Dawson, with the remainder owned independently.

The majority of wholesalers distribute magazines within a defined postcode area. On average a wholesaler will distribute magazines to between 400 and 500 retail outlets.

The multiple wholesale groups' market shares are as follows:

There are some distinct regional variations with John Menzies holding a monopoly in Scotland and Easons' distribution being confined to the Republic of Ireland.

Of the 53,000 retail outlets, some 6,000 are owned by retail multiple chains, with the remainder independently owned. However these 6,000 outlets account for approximately 50 per cent of sales.