ENOUGH'S ENOUGH END CARRIAGE CHARGES - THE MAGAZINE FOR INDEPENDENT RETAILERS - NFRN
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ISSUE 145
THE MAGAZINE FOR INDEPENDENT RETAILERS OCTOBER 2017
ENOUGH’S ENOUGH
END CARRIAGE CHARGES
PAGE 32
@NFRN_online facebook.com/nfrnonline www.nfrnonline.com
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LINDA SOOD CONTENTS
NFRN National President NFRN NEWS
National news 4-7
As if any further evidence was needed of demonstration outside the news Local news 9
abuse by news wholesalers, Smiths News wholesaler’s head office last month.
TRADE SHOWS
recently announced that come November In one of the most high profile actions
Summer events 10-11
its carriage charges would be hiked by an the NFRN has taken for some time we
average of 4 per cent. aimed to get Smiths News’ senior LETTERS
At a time when many independent management to recognise that for Having your say 12
retailers are suffering financially, for Smiths independent news retailers, enough was POLITICAL ISSUES
News to expect its customers to absorb enough; that it’s time they got to grips Carrier bag code and crime 15
such a significant increase is totally with service levels and to be truly NATIONAL COUNCIL
beyond me. transparent when it comes to revealing Autumn proceedings 16-19
Carriage charges are a blight on news the make-up of the charge. In the longer THE FED’S GUIDE TO...
retailers. They are outdated and unfair; term we want a complete overhaul of Newspapers and magazines 22-26
in short, a rip off. They deny retailers a carriage charges before it is too late and RETURN SCHEME
large slice of the margin they should independent retailers give up on the Plans are a step closer 28-30
receive from selling newspapers and newspaper and magazine categories.
ENOUGH’S ENOUGH
magazines, and isn’t it strange that they I would like to say thank you to the
Retailer protest at Smiths News 32-36
always go up when circulations continue retailers who came along to voice their
to decline, and when petrol and diesel anger and I am proud of our efforts in NFRN AWARDS
prices fall? representing our members’ interests in Retailer finalists 39
As I told national councillors at our this way. We have clearly shown that PAYZONE TERMS
recent meeting in Liverpool, if the money ‘enough’s enough’. NFRN victorious 40-41
Smiths News recouped from these charges What Smiths News – and Menzies ASK THE EXPERTS
was used to invest in the business and to Distribution too for that matter – should Legal support for your business 42-43
improve the service that it gives to its do now is negotiate an improved margin FOOD-TO-GO
retail customers, then perhaps it could be from the publishers. Is a way of modern life 46-50
more comprehensible. But given recent And, in my meeting with representatives HERE TO HELP
performances from the new Birmingham from all the supply chain, I will be urging NFRN Connect 52-53
and Hemel houses, it appears that nothing them to think long and hard about the
NEWSPRO
could be further from the truth. way it operates and to find better ways to
Frontline’s festive tips 56
It’s not surprising then that members’ fund wholesalers that does not pile yet
anger and frustration has been boiling more cost on hard pressed retailers. STORE2DOOR
over, and as you will have seen from Through future columns in The Fed I will Sub retailing success 58-59
the front page, this culminated in a keep you posted on my success. NEWSPRO
Menzies portal upgrade 60
National President Linda Sood NEWSPAPER MARGINS
At a glance guide 62
Editor Anne Bingham
0207 017 8887 anne@nfrn.org.uk DIARY
Key dates 63
Editorial 0207 253 4225
Advertising Carolyn Kirkland
öWhereùer one man can 0207 017 8883 carolyn@shoplinkonline.co.uk
help another, thank God for Design & production MYPEC
such a birthright, brotherõ 0113 257 9646 info@mypec.co.uk www.mypec.co.uk
0800 043 0215 ADVICE & CLAIMS: 020 7017 8865 0800 028 7283 0800 066 4988
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Disclaimer: While every effort is made to ensure the accuracy of information contained in this publication, no guarantee is given that the information provided is correct, complete, and/or up-to-date. The materials contained
in this publication are provided for general information purposes only and do not constitute legal or other professional advice on any subject matter. The NFRN and the publisher do not accept any responsibility for any loss
which may arise from reliance on information contained in this publication. Produced by MYPEC and printed in England.
NATIONAL NEWS For latest news, deals and views, go to
nfrnonline.com
DELIVERING RETAIL CHOICE
© Business Shows Limited
“Wholesalers are trying to dictate retailer was that they understood their
ranges, and in this way retailers are customers and engaged with them.
becoming more homogenous,” he said. “A good independent will always be
“Yes, there may be different fascias above better than a good corporate because it’s
shop doors, but step inside and it’s the their money, their passion and their
same story.” people and they know what needs to be
In a rallying cry, he said: “You can’t trim done,” he explained. “We need to find a
our ranges. You can’t make us mini-mes. way that wholesalers can support
Consumers want choice.” independent retailers so they can do
For many years, and because of the what they need to do and not what
duopoly in news wholesaling, retailers had you want them to do.”
Grocery wholesalers need to raise their suffered from poor service and lack of Independents wanted points of
game and improve their availability or availability, but Mr Baxter said that more difference, such as more new product
independent stores are likely to become a members than ever were complaining that development, better availability and
host of ‘mini-mes’, NFRN chief executive grocery ranges were getting smaller and better pricing. Range reduction for the
Paul Baxter has warned. that certain products were being pushed sake of rationalisation and efficiency was
In a presentation entitled ‘What does on them. not acceptable.
the future hold for the customer?’ at IGD “In the long term retailers will be less In his final call for action, Mr Baxter said
Wholesaling 2017 in London last month, independent and less varied and that’s that if Amazon could understand and
Mr Baxter told the audience of suppliers, bad for suppliers and shoppers,” deliver what millions of customers
wholesalers and retailers that availability Mr Baxter cautioned. wanted, suppliers and wholesalers should
was poorer than ever. He said the beauty of the independent be able do the same for the retailer.
NEWS SUMMIT RAISES
SUPPLY CHAIN ISSUES
National publishers and news wholesalers will be invited
to share hopes and fears on the future of the supply chain
when the NFRN holds its next news summit in London
next month.
Members’ concerns over delivery times, availability and
POPPY APPEAL MEDAL insertion payments will also come under the spotlight, with
the emphasis again on the way that publishers and
In recognition of her tireless support and fundraising for the wholesalers need to support independent news retailers.
Poppy Appeal, Llanidloes retailer Trudy Davies has been Head of news Brian Murphy said: “Our regular news
presented with a Royal British Legion Service medal. summits play an important role in reminding our supply
Trudy, of Woosnam & Davies News, is pictured proudly chain partners of the huge role that NFRN members play in
receiving the award from Llanidloes Mayor Janet Crisp. the industry; enable us to address service failings and to
She has devoted an impressive 35 years to supporting the highlight ways that we can all work together to boost sales
Royal British Legion and the medal was awarded to her by and profits in their stores.”
the national chairman of the Royal British Legion for her News summits have been held regularly since January 2013.
‘continued, tireless, loyal and long service’. At the last gathering on May 23 this year the NFRN laid bare
A modest Trudy told The Fed: “I am honoured to have been the impact that late deliveries had on the businesses of HND
awarded this from The Poppy Appeal RBL for my work, retailers and roundsmen. Although the publishers and
although it is not hard work when you meet so many great wholesalers attending were told that arrival times into
people over the years. It amazes me how generous everyone retailers had improved during 2017, there was still more to
is for this very ‘close to my heart’ and worthwhile charity.” be done to ensure the longevity of the industry.
4 NFRNONLINE.COM OCTOBER 2017
NATIONAL NEWS
PAYZONE RECONSIDERS News in brief
CONTRACT CHANGES
After intense pressure from the NFRN, meeting’ between the NFRN and Payzone,
PENSION SCAM
Beware of an email entitled Complete
including the threat of legal action, Payzone the e-payments company agreed to your Declaration that appears to come
backed down over controversial changes reconsider and confirmed it would give from The Pensions Regulator as it is a
that it had planned to introduce to retailers a reasonable period of notice to scam and should be ignored. The email
accompany the launch of its new consider the new contracts and an ability to contains a false PAYE number and
tablet technology. terminate their current contract without Staging Date and warns recipients that
In late July, the e-payments company penalty should they consider the new they need to complete a Declaration of
wrote to its retail customers introducing its arrangement was not suitable for their Compliance immediately, with links to
new Payzone tablet but also detailing business. Payzone also agreed to a 60 days enable them to do so. For support and
changes to its terms and conditions, notice period to terminate, as opposed to guidance on how to prepare your
including the lengthening of contracts and the six months initially sought. business for pension auto enrolment visit
an extension to notice periods. Retailers Speaking after the meeting NFRN chief the NFRN website www.nfrnonline.com.
were given no time to consider the impact executive Paul Baxter praised Payzone for
such radical changes could have on their the ‘constructive way’ that it approached DISTRIBUTOR CLOSURE
businesses or to terminate their contracts the discussions. It has been confirmed that Comag will
without penalty. “We are supportive of Payzone’s cease to distribute magazines from
The NFRN immediately contacted technology investment and future business
October 31. With just two major
Payzone outlining concerns and calling on plans and will work with them to ensure
magazine distributors – Frontline and
the company to suspend these changes. that our members receive fair and equitable
Marketforce – remaining, the NFRN
When no response was received, legal terms,” he said.
advice was taken which clarified that while Work would continue on a number of news team is committed to keeping a
Payzone had a right to change contractual important clauses and charges still within watching brief to make sure there is no
terms unilaterally, there was a strong the new contract that the NFRN believed deterioration in service levels.
argument against it using this power to required further review, he added.
lengthen members’ contracts without their Payzone chief commercial officer Rupert LEGAL TENDER
consent. The NFRN was also told that a Lowery added: “We are totally committed Don’t forget that old style £1 coins cease
court would be likely to regard Payzone’s to our core convenience market and have to be legal tender from October 15. After
attempt to keep members in its network for spent millions creating a better retailer and then you are no longer obliged to accept
longer than previously agreed as an unlawful consumer experience which will bring the round coins from customers and
restraint of trade, as well as being in breach several improvements to retailers. you should not distribute them. Any old
of the Unfair Contract Terms Act 1977. “We recognise the role the NFRN plays coins can be deposited at most high
A letter detailing these points – and and welcome the chance to get things right street banks.
warning of possible legal action – was sent to the benefit of all sides.”
from the NFRN’s legal advisers. To read more about this NFRN win see PUZZLE WINNERS
On August 16 during a ‘full and frank page 40. Winners of the PuzzleLife Prize Puzzle in
the July 2017 edition of The Fed are Joyce
Janes of Bromfield Place, Penarth and B.C.
Patel of Grange Road, Ramsgate.
Congratulations both, your £50 prize is
currently winging its way to you. To enter
this month’s competition see page 63.
NORTH WEST DANCE
North West district is holding its annual
dinner dance at the Sheridan Suite, 371
Oldham Road, Manchester on Sunday
LOTTERY CELEBRATES FALKIRK WINNERS November 5. Tickets can be booked by
emailing suleman’khonat@btinternet.
Stirling member Mohammed Hussain had a Since The National Lottery’s launch in
com or chris.appleton@nfrn.org.uk.
taste of life as a millionaire when his shop 1994, Mr Hussain’s FK postcode has seen an
was visited by a group of National Lottery incredible 20 National Lottery millionaires.
butlers to celebrate the number of big He said: “We obviously know that a LITTER EVIDENCE
winners in his area. portion of each National Lottery ticket we Following an increase in complaints from
Bringing a bit of luck and joy to people’s sell goes towards supporting good causes retailers receiving tote boxes containing
day at Allanwater Papers, the butlers paid around the UK, but we were amazed to litter – such as old packaging and even
for people’s shopping, helped to carry their find out the number of millionaires that out of date bread – members are asked
bags and assisted National Lottery players have been made in our area.” to send photographic evidence to
in choosing their lucky numbers with the Mr Hussain is in the middle of the marie.fisher@nfrn.org.uk. This will allow
help of a special gold phone that was on photograph on the gold phone, flanked by the NFRN to raise concerns with the
speed-dial to real local winners. the butlers and Camelot representatives. relevant news wholesaler.
OCTOBER 2017 NFRNONLINE.COM 5
NATIONAL NEWS For latest news, deals and views, go to
nfrnonline.com
WITH THE HEALTH LOTTERY ‘EVERYBODY WINS’
Until October 31 a new Health Lottery A poster promoting the initiative can be DISPLAY
OF THIS
LICE NCE
IS A REQ
promotion will give customers the chance found inside this issue of The Fed.
UIRE MEN
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Pr
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rises these ting under -3 T
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Everybody Wins sees each Health prominently in store, the Health Lottery’s
which Societ ted to be able this Licenc
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the week
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Lottery transaction generate a code that Gary Troman said: “Everybody Wins is sure
08 Jul ending and cove
Society lotte rs the sale
15 Jul of tickets
HealthFit ries plan for the follow
22 Jul ned ing draws
29 Jul HealthConfi Which area
rm Merseyside s do the socie
05 Aug HealthEngag ty lotteries
e Berkshire cover?
12 Aug HealthWin
will enable customers to redeem an online to see sales of Health Lottery tickets soar!” 19 Aug
26 Aug
02 Sep
09 Sep
HealthSucce
HealthConta
HealthStrong
HealthFull
HealthTotal
ss
ct
Southern
East Yorksh
Norfolk
Devon
Oxfordshire
Scotland
ire & Humb
erside
16 Sep & Buckin
voucher for Alton Towers resort or Alton Meanwhile, new Retailer Licences 23 Sep HealthRich Somerset ghamshire
& Dorset
30 Sep HealthFreed Gloucesters
om hire
07 Oct HealthExpec South Yorksh
t ire
14 Oct HealthRegar South West
d London
21 Oct HealthPromo South West
te Wales
HealthLevel Nottingham
Towers Scarefest, Thorpe Park or Thorpe are being distributed by the Health
28 Oct shire
04 Nov HealthHope North East
London
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28 3 1
11 Nov HealthWish
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Park Fright Nights and Warwick Castle. Lottery’s sales team and these also
lete Cornwall
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rd
There is no limit on the number of two- need to be sited in view of customers
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it Durham & shire
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ol Teesside
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ity ire stershire
customer needs to do is to hold on to Commission approved item that must be 31 Mar HealthBelief Manchester
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ct n
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th nshire & Leices
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m Essex
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their ticket; go to www.healthlottery.co.uk displayed to enable retailers to legally sell
05 May HealthDivers London
e Edinburgh
12 May HealthBright & the Lothia
19 May HealthLives North & Mid ns
Wales
26 May HealthWhole Solihull &
Birmingham
02 Jun HealthConfi East Londo
rm n
09 Jun HealthEngag Kent
to set up, or access their Health Lottery tickets and pay prizes for The Health
e Berkshire
16 Jun HealthAble
23 Jun HealthSucce Southern
ss Scotland
30 Jun HealthGift Cumbria
& Northumbe
07 Jul HealthStrong Norfolk rland
14 Jul HealthFull Central Scotla
Oxfordshire nd
account and enter the promotion code Lottery. This new version is valid until June 21 Jul HealthConta & Buckingham 16+
ct Somerset
28 Jul HealthSustai & Dorset shire Players must
n Devon and Conditio be 16 or over. Terms
HealthAmaz ns, Game
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Procedur
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HealthShine Lottery scheme Health
Wakefield ester North lotteries that manages 51
operate society
and each
& Leeds represents in rotation
geograph a different
Glasgow ical
which is found on their ticket. A link will 2018. Again, a copy of the Retail Licence is
& Strathclyde Britain. For region of Great
more details
society lottery on
please visit is running which
healthlot each week
ask your Health tery.co.uk
Lottery retailer. or
Version 8.
Correct at
time of print
- 01.06.17
then pop up which will take them to the being distributed in this edition of The Fed.
Everybody Wins page where they simply Any member who does not offer
enter their email address and confirm. They The Health Lottery but would like to do
will then receive a unique code and a link so, or retailers wanting further information
to the Merlin booking page. Details of the or additional point of sale material
offer will appear on the front of the ticket should call the Retailer Helpline on 16+ You Win. Good Causes Wiin. Eve dy Wins. *O4UPSFq.PCJMFq0OMJOFXXXhealthlottery
erybod y.co.uk
Players must be 16 or over. Everybody Wins T&Cs, Game rules and procedures apply. Every Health Lottery transaction made between 28.09.17 and 31.10.17 entitles the ticket holder to claim a 2 FOR 1 day pass at either
Alton Toowers, General Reso owers, Scarefest (visit up until 31.10.17); Thorpe Park, General Resort (visit up until 01.11.17); Thorpe Park, Fright Nights (visit up un til 01.11.17) or Warwick
ort (visit up until 31.10.17); Alton To
Castle (visit up until 31.12.17). Retail and online players must register online at www.healthlottery.co.uk to claim this offer. There is no cash alternative. Full details can be found on our website. The Health LotteryTM logo
is a registered trademark of The Health Lottery Ltd. The Health Lottery scheme manages 51 society lotteries that operate in rotation and each represents a different regional of Great Britain. For more details on which
society is running each week please visit www.healthlottery.co.uk or ask your Health Lottery retailer.
during the promotion period. 0843 216 6500.
NETWORKING
EVENTS 2018
The NFRN’s programme of networking
events is being enhanced for 2018 thanks
to an exciting tie up with food and drink
wholesaler Booker.
During each quarter there will be one
trade show each in Booker depots in the
north, south, east and west of the UK. This
means the two companies are combining
for a total of 16 events during 2018.
At each, there will be special offers for
NFRN members along with the chance to
meet suppliers to hear more about their
latest products and services.
Announcing the partnership, national
events manager Nigel Smith said: “This
year we have been delighted to host some
great trade shows in cash and carries and
news wholesalers all over the UK and the
KICK OFF FOR BOMB VICTIMS
Officials from the North West district helped kick off a football tournament in aid
hundreds of members who have come of the Manchester Arena bomb victims.
along have benefited by seeing for More than 40 junior football teams from East Lancashire took part in the Unite
themselves new products and promotions the Community event at Witton Park in Blackburn to help raise funds for victims of
and hearing more about the NFRN’s Retail the May Manchester terror attack.
Standards programme, the national lottery District president Paresh Vyas, deputy vice president Salma Patel and national
and how they can enhance their councillor Suleman Khonat presented some of the 100 trophies handed out to the
newspaper and magazines offering. We are winners and runners up.
very excited about our new tie up with Mr Vyas said: “The events at the Manchester Arena on May 22 after the Ariana
Booker and look forward to meeting even Grande concert were truly shocking so the district was pleased to get involved in
more NFRN members, and together such a worthwhile event and to help raise money for victims and their families.”
showing them new ways in which they can Four branches – Blackburn, Manchester and Oldham, East Lancs and North
improve their businesses.” Manchester – generously donated £500 each to help victims.
6 NFRNONLINE.COM OCTOBER 2017
NATIONAL NEWS
UNITY TO PROMOTE HOME DELIVERY
Six national newspapers – The Guardian, i, solution allows readers to identify their “This website supports our independent
Mail, Sun, The Telegraph and The Times – local HND retailer and there is an retailers in providing and growing the
have joined forces to drive home news introductory offer to help facilitate the convenience of home delivery to
delivery across the country. transition from a casual sale to a regular newspaper readers across the country
The new delivermynewspaper.co.uk delivered copy. on a daily basis.”
website is designed to be a recognisable “In addition, readers can now easily
brand for consumers and retailers alike, identify their local HND shop if they move
communicating promotions and offers house or area, ensuring it keeps the
while investing in the future of the customer within the HND network rather
newspaper category. than losing them.
Significant investment has been made in “HND is, and will continue to be, a huge
launching the site and the participating part of independent retailers operations,”
publishers are contributing towards the Mr Duffy continued. “It is key that as
funding for the ‘six weeks free delivery publishers we collaborate to build on this
offer’ for every customer, and rolling out a platform to help sustain and grow the
suite of POS to retailers up and down the existing HND base across the channel.”
country to advertise the service. Over the coming year publishers will
Speaking on behalf of the identify delivery black spots across the
delivermynewspaper initiative Mail country and share these with the NFRN to
Newspapers head of retail sales and trade help identify members that may be able
marketing Paul Duffy said: “We are fully to offer a service within these areas.
committed to growing HND across the Pledging support for the new initiative,
retail estate. The launch of this national NFRN chief executive Paul Baxter said:
HOME DELIVERY
HAVE YOUR SAY
Home news delivery – whether
provided by independent retailers or
roundsmen – is a vital community
service for millions of consumers, but
today, and for many reasons, it is under
increasing pressure.
To get a full understanding of why
this is so and to enable the NFRN to
consider what steps can be taken to
ensure the longevity of this valuable
service, we are running a short survey on
our website and via NFRN Connect.
If you currently offer an HND service
we would welcome your input. We want
to know how many HND customers you
have, the type of customer that you
deliver to and how your deliveries are
done – for example, by schoolchildren,
adults, pensioners or yourself – and how
all these factors have changed over the
past 10 years.
DAY TRIP TO SAY ‘THANKS’ We would also be keen to hear more
about the issues that are impacting
Northern news deliverers enjoyed all the fun of the fair with a day trip to Flamingo on your ability to provide a good
Land theme park and zoo near Pickering, North Yorkshire on Sunday July 9. HND service.
The annual trip, organised by Northern district’s social committee, gave members Any information that you provide
the chance to say thank you to their hard working and conscientious young will be treated privately and will only
employees, and more than 150 youngsters went along. be used with your express permission
District president Mike Brown said afterwards: “The weather was great and being obtained.
everyone enjoyed a brilliant day out. Many thanks to Menzies Distribution and To participate please visit
Smiths News for, again, sponsoring the transport, and thanks to Booker, Stockton www.nfrnonline.com/hnd-survey or
for supplying goodie bags for the Teesside coach.” phone 0800 121 6376.
OCTOBER 2017 NFRNONLINE.COM 7
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ou
www.shoplinkonline.co.uk
www.shoplinkonline.co.uk
LOCAL NEWS
YOUNG PEOPLE GRANTS
EMPOWER DELIVERERS
Two youngsters have been given the chance have the satisfaction of knowing he has
to follow their dreams thanks to NFRN made improvements that otherwise would
Empowering Young People grants. not have been able to take place.”
While Ronan Donoghue from Melsonby Meanwhile, thanks to his Empowering
in North Yorkshire experienced a once in Young People Grant, James is off to
a lifetime trip to Peru with Camps compete in the world martial arts
International this summer, promising kick organisation (WMO) World Championships
boxer James Gayles is off to Dublin this in Dublin. James, 13, has been kickboxing
month (October) to take part in a for nine years and since 2016 has been
prestigious competition. competing at national and international
As part of his four week visit in July and level.
August, Ronan trekked to Machu Picchu, the He delivers newspapers for News2U in
Incan citadel set high in the Andes Leeds and his employers Martyn and Kate
Mountains, and participated in community, Brown nominated him for an NFRN grant to
wildlife and environmental project work. help pay for travel, accommodation,
To pay for the £4,170 trip, Ronan, who equipment and tournament fees.
delivers newspapers for Barton Stores and Mrs Brown (pictured right with James)
Post Office in Richmond, North Yorkshire, explained: “James has been working for us
applied for an Empowering Young People for about six months and through his
grant to supplement the money he had kickboxing we have seen him grow into a
raised through his paper round, car washing confident young man.
and bag packing and by asking for cash for “James is the current World Champion for
Christmas and birthday gifts presents. The U12s (under 45 kilos). He has now moved up
NFRN donated £400 towards the trip. a grade to 13 to 17 years of age and has won
His mother Elizabeth told the NFRN that the British title, so we are hoping for great “These two examples highlight what the
Ronan had had an ‘amazing’ time. things for him. Carl Bridgewater Fund is all about – building
“He completed projects working on “Applying for an Empowering Young the character of young people. What better
building bathrooms, irrigational channels People grant was very straight forward. It way to remember Carl Bridgewater than to
and a community centre. He successfully was very rewarding to be able to inform award grants like these?”
achieved the four day trek into Machu James’ parents that a grant was to be Application forms for Empowering Young
Picchu despite forest fires on other trails; awarded.” People grants are available from NFRN
he spent some time on a reed island on Through the NFRN Empowering Young Connect by telephoning 0800 121 6376 or
Lake Titicaca and enjoyed learning about People scheme financial support is available emailing connect@nfrn.org.uk. Mr Wagg
local customs.” to young people who are keen to pursue urged members to nominate deserving
Endorsing Ronan’s application, employer opportunities in a number of areas including young employees.
Darren Wool said the teenager was education, welfare, culture and sport. Newspaper boy Carl, 13, died after
committed to his job and delivered Contributions are made via the Carl apparently disturbing a burglary at Yew Tree
newspapers in all weathers. “As well as Bridgewater Fund. Farm, near Stourbridge in 1978.
learning new skills and languages, he will NFRN benefits chairman Peter Wagg said: See letters on page 12.
CUP WIN FOR ATHLETE
Promising athlete Issuf Sanha of Great Yarmouth High School is
jumping for joy after being chosen as this year’s recipient of the
Foreman Cup, which is presented annually by the Eastern
Counties North East branch.
Issuf is pictured receiving his trophy from branch president
Debbie Turner and secretary Ralph Childs.
This prestigious award was created by the former Great
Yarmouth branch in memory of secretary Wilf Foreman and is
presented to a local school athlete from the town who meets or
comes close to national standard in their sport.
Last year the Great Yarmouth branch merged with Norwich and
Lowestoft to form the new Eastern Counties North East branch.
Issuf, who is in year 10, excels in two sports – the long jump and
running. His personal best is 11.3 seconds for 100 metres and he
has jumped 6.03 metres.
OCTOBER 2017 NFRNONLINE.COM 9
TRADE SHOWS
T20 cricket action at Durham
HOWZAT! FOR A
SUMMER OF SO
This summer’s NFRN social events have ranged from a Canny shoppers snapped
trade show and tour of Menzies Distribution’s up great deals on back to
operation in Wakefield to a barbecue in Windsor Great school offers at a trade
Park for Berks and Bucks members. day held at Suman Bros
Northern retailers and their families and friends in Watford.
could relax to the gentle sound of leather on willow
with a trip to Durham Cricket Club for a Nat West T20
match between the Durham Jets and Birmingham Bears. Menzies Trade
Show and tour
10 NFRNONLINE.COM OCTOBER 2017TRADE SHOWS
BBQ in
Windsor
Great Park
FUN PACKED
CIAL EVENTS Suman Bros
Trade Show
OCTOBER 2017 NFRNONLINE.COM 11LETTERS Have your say email anne@nfrn.org.uk
HAVE YOUR SAY
TALKS TERMINATED reason Smiths has moved us back to 5.30 We have also added additional resources
As announced by John Menzies on August am (official time). The problem has arisen to our packing and returns teams to ensure
14 2017, talks with DX plc over the possible because it has hired another driver – who that we pack and deliver your supplies to
combination of Menzies Distribution and for the last two and a half months has been you on time, and to ensure we process
DX have been terminated. consistently late. His normal time to get to your returns quickly.
Following a trading update issued by DX us is 5.50am (20 minutes after he should get Some customers have also been subject
on July 14 2017 we undertook additional due to us) but this means that if the papers are to late delivery of magazines. Whilst rare
diligence work into the proposed deal. late, then he gets to us even later than that, and as a result disruptive, we work hard to
After completing that work it became usually arriving at 6.10am, leaving me 20 ensure that nothing impacts the newspaper
apparent to us that any transaction would minutes to go through the papers and do distribution and so have, on occasion,
need to be completed on different terms to the deliveries. implemented second runs for the magazine
those which we jointly announced in June. He has even requested that I call the product from Hemel Hempstead.
Despite the fact that we continue to office and request that they change my Please accept our apologies for these
believe there is a strong strategic logic for official time to 5.45am so he isn’t marked issues and our assurance that we are
combining the businesses, and despite down on his timing which I refused to do as working hard to ensure distribution and
further discussion with DX plc, the John I NEED my papers earlier. communication return and stay at a level
Menzies Board does not believe it is I have requested to be moved onto acceptable to our customers.
currently possible to agree a revised set of another round, which the driver has agreed Jim Sinden, Hemel group manager,
terms which would be in the interests of to and can get the papers to me for Smiths News
our shareholders. 5.15am, but for some reason this has not
Menzies Distribution remains focused on materialised. MARKET SHARE
the three central objectives which we My delivery has arrived after 8am five or i launched just seven years ago and is a
outlined in our meeting with the NFRN six times in the last month because the lot younger than its competition, yet in
earlier this year: driver keeps breaking down – however, the the 16 months of Johnston Press ownership
• Firstly, to build a national network for our driver before him, whose van it is, barely we have grown market share in the quality
business that develops and supports the ever broke down. This has caused me to lose newspaper audience from 17 to 20
long term sustainability of the route to business as I appear to be unreliable to my per cent.
market for our newstrade partners. customers. I even lost a paperboy because We are now significantly investing in i to
• Secondly, to put Menzies Distribution at the deliveries were so unreliable, he couldn’t ensure an even brighter future for our
the heart of retail logistics and parcels. keep being messed around. national newspaper. This includes an
• And finally, to continue diversifying our Amit Lodhia, via Facebook exciting relaunch of iWeekend that will see
operations that enable Menzies a much more modern, inspirational and
Distribution to grow its presence in the LETTER OF APOLOGY informative weekend reading being
newstrade value chain. Copy of a letter sent to customers of available on your shelves for your
While a deal with DX would have Smiths News, Hemel Hempstead depot customers to enjoy. We will also be
significantly advanced our progress towards I am writing to offer an explanation and my investing in our weekday content in order
these objectives, it is by no means the only apologies for the service issues you may to provide readers with the news, comment
avenue available to us. have experienced in recent weeks from our and features they have told us they want.
Following the termination of these talks Hemel Hempstead depot. We are hugely appreciative of your
we will continue working on the other We suffered a number of significant continued loyalty and support for i, Britain’s
options in front of us for the creation of a issues recently including power cuts that only concise quality newspaper, and as we
diverse, national logistics network – one left us significantly behind in the packing start to look forward towards 2018 we are
which will help us to extend the and distribution of magazines, and a system committed to bring even more valuable
sustainability and profitability of the fault on the telephone system that led to customers into your shops.
newstrade supply chain. customers not being able to get through to I circulation, Northcliffe House
You, as one of our core newstrade customer services.
partners, remain critical to our future. I look Both issues led to service levels that EMPOWERING PERU
forward to sharing the next phase of our customers should not expect and we Ronan has returned from an amazing
plans with you in due course. apologise for the inconvenience this expedition to Peru, where he completed
Greg Michael, managing director, has caused. projects building bathrooms, irrigation
Menzies Distribution We have reviewed our contingency channels and a community centre. He
planning for power outages to ensure we successfully achieved the four day trek into
DELIVERY DELAYS minimise any impact on packing and Machu Picchu despite forest fires on other
I have a newsagents in Huntingdon, distribution in the future and corrected the trails. He spent some time on a reed island
Cambridgeshire and my deliveries from system fault in our telephony system. on Lake Titicaca and enjoyed learning about
Smiths are just going from bad to worse. We are, though, continuing to receive local customs.
For the last two and a half years we have higher than usual volume of telephone Thank you for your support of this
tried to get our deliveries for about 5am so calls, and to ensure we answer these as expedition.
that we can increase our HND business. We quickly as possible, we have placed Liz Donoghue, mother of
did get moved to an earlier slot, from additional resources into our Customer Ronan Donoghue, Empowering Young
5.45am to 5.15am for a while, but for some Contact Centre. People Grant recipient
12 NFRNONLINE.COM OCTOBER 2017POLITICAL ISSUES
CARRIER CODE MOVES CLOSER
Efforts by the NFRN to get the government to support smaller to make clear to their customers what they are being charged,
shops in England who charge consumers for single use plastic and where the proceeds are donated.
bags have come a step closer following a meeting with civil At the meeting the officials told the NFRN that ministers are,
servants at the Department for Food, Environment and Rural in principle, supportive of the proposed scheme and that they
Affairs (DEFRA). share the desire to work with other trade associations to garner
Despite an NFRN campaign, small independent retailers were support across the retail sector.
excluded from government requirements to charge for carrier While this indication of support is extremely welcome, more
bags when the levy was introduced in England in October 2015. work has still to be done to agree the details with ministers and
Under the legislation, only retailers employing over 250 to encourage other trade associations to get their members
employees are required to enforce the 5p charge. However, involved. The NFRN is confident, however, that with the scheme
under schemes in other parts of the UK, independent retailers having the backing of DEFRA, other retail groups will want to
do charge their customers for plastic bags. promote it to their members.
The NFRN is aware that since the levy came in many The NFRN had also hoped that ministers would consider a
environmentally friendly members have chosen to implement a change in the regulations to bring independent retailers within
charge, with the proceeds donated to local good causes. the requirements of the levy. It has become clear, however, that
Now the Federation wants the government to support these there is not enough parliamentary time available for any changes
retailers by getting behind a voluntary code that helps retailers to be made.
CRIME DATA
RAISES ISSUES
Yorkshire retailers were able to air
concerns about crime when David Smith,
a member of the West Yorkshire police
and crime commissioner’s team, attended
the district’s July council meeting.
One of the issues discussed was the
removal of a crime-busting initiative that
enabled retailers to warn each other
when shoplifters or robbers were on the
prowl. Clarification was also sought over Pictured left to right are Packie Docherty,
measures that shop owners and staff can Martin Mulligan, Peter Steemers and Bob Murphy.
take to defend themselves if attacked.
Members also shared fears that
retailers who rang 999 to report crimes NFRN PRESSES MINISTER
were not being treated as emergencies.
Data collected by the NFRN and
tabled at the meeting revealed that
FOR OMBUDSMAN
Republic of Ireland officials and members legislation and falling margins. Rising
between January 1 and April 30 this year reiterated their calls for an ombudsman for delivery charges meant that retailers were
there had been 64 incidents of retailers retailers at a meeting with minister Kevin now paying an average of €7,000 per year
or staff in West Yorkshire convenience Moran at the Dáil Éireann in July. for their newspaper and magazine supplies.
stores or newsagents being attacked, During the meeting, the NFRN Speaking after the meeting, Mr Steemers
either physically or verbally, and 6,414 delegation – comprising district president said: “Independent retailers feel embattled
shoplifting incidents. Peter Steemers, district public affairs and attacked from all sides with no part of
Mr Smith, who is the third sector committee chairman Martin Mulligan and the government looking out for them. We
adviser, promised to raise all the retailers Packie Doherty and Bob Murphy – want an ombudsman that we can go to if
district’s concerns with West Yorkshire detailed the everyday challenges that we believe that new government regulation
police and crime commissioner independent retailers faced and the is overly burdensome, unfair or if the
Mark Burns-Williamson. ‘decisive’ actions required from the actions, or inactions of other government
government to overcome them. bodies, such as the competition authorities,
Mr Moran heard that the creation of an will damage our sector.
ombudsman could help to ensure retailers’ “We believe that by having an
views on issues as diverse as licensing, ombudsman, confidence in the future of
taxation and competition were heard by the sector can be rebuilt, bringing with it
ministers. new investment and innovation that
The NFRN explained how retailers were benefits not just retailers but consumers
facing increased payroll costs, electricity and the communities we serve. It was a
bills, banking charges and insurance positive meeting and we were pleased to
premiums at a time of heightened hear Mr Moran pledge his support.”
OCTOBER 2017 NFRNONLINE.COM 15NATIONAL COUNCIL
LIVERPOOL PLAYED HOST TO THE
LATEST NATIONAL COUNCIL
MEETING ON SEPTEMBER 4 AND 5
AND THE FED WENT ALONG TO
REPORT ON DISCUSSIONS
AUTUMN UPDATE
Supply chain injustices charges might not be as difficult to Mrs Sood promised. She also said the news
As the champion of the independent comprehend, although they would still team would keep a watchful eye to ensure
retail sector it is critical that the NFRN remain unpalatable,” Mrs Sood said. there was no deterioration in services.
highlights and tackles unfairness through- “The recent performances from its With some trade events planned for the
out all supply chains, said National new Birmingham and Hemel hubs remainder of the year and with some
President Linda Sood. demonstrates that this is far from exciting plans for 2018, she urged national
In her wide ranging opening address to the case.” councillors to encourage members in the
National Council she vowed that: As well as continuing to challenge the relevant districts to attend.
“throughout the coming year the NFRN news wholesaler to think again, she said “I know that we can equip our members
will continue to address any injustices that she would be urging publishers to “think with all the skills, knowledge and services
we are made aware of.” long and hard about the way the news they require so they can react positively
The NFRN had responded ‘quickly and supply chain operates and to explore other despite the challenging trading environ-
decisively’ to the news that Smiths News ways to fund wholesalers that does not ment and benefit from even more
was hiking its carriage charges by an involve piling yet more costs on hard profitable and successful businesses,”
average of nearly 4 per cent, adding that pressed retailers”. Mrs Sood said.
it was inconceivable for retailers to be The NFRN’s concerns about the She finished her address with a plea for
expected to fork out yet more to the forthcoming duopoly in the magazine national councillors to lend their support.
news supplier for a service that at best distribution sector, with power “Progress can only happen if we
was ‘inadequate’. concentrated between Frontline and work together, so I invite you today to
“If Smiths News used the money it Marketforce once Comag ceased to all play a part in the future success of
recovered from carriage charges to truly operate by the end of the year, would be the NFRN, and more importantly of the
invest and improve its business, then such shared with the competition authorities, independent retailer.”
NFRN TO DISCUSS DEPOSIT SCHEMES
The NFRN wants to actively engage in discussions on systems views and concerns could be aired.
that enable shoppers to cash in their old drinks bottles and Jason Birks from Northern district agreed, adding that it was
cans to ensure the best possible outcome for independent ‘very progressive’ of the NFRN to be involved. “England may
retailers, explained chief executive Paul Baxter. follow suit so it is important that the scheme is shaped in the
“We are at the forefront so we can understand how any such way that we want it run, and that we get the best for
schemes will work,” he said. “It’s important that retailers are members,” he said.
involved from the beginning so we can fully understand the Peter Robinson from Wales said the benefits for independent
benefits and agree who should be exempt. We want to make retailers were huge, although there could be a
sure that those who want to participate can, and those challenge in physically siting the
members who want to be exempt are exempt.” machines. “Customers are going to
Under deposit returns schemes shoppers pay a small deposit spend the money they get back
that is refunded once an empty bottle or can is returned. from depositing their returns in
Mr Baxter said retailers participating in such schemes would my shop. It’s a real sales
benefit because customers returning their bottles and cans opportunity. It’s not a
would be likely to use the money refunded in their shops. financial drain. Getting
National councillors supported the NFRN’s stance on involved is the right thing
entering discussions on deposit returns schemes. to do.”
Scottish national councillor David Woodrow said it was vital To read more about deposit
that the NFRN was part of any working group so members’ return schemes visit page 28.
16 NFRNONLINE.COM OCTOBER 2017 Jason BirksNATIONAL COUNCIL
CAUSE FOR 100 YEAR CELEBRATION
Celebrations for the NFRN’s centenary in 2019 will involve as many Peter Robinson said: “London is the right city for our centenary
members as possible, said head of events Mike Mitchelson if we want to get the great and the good from government and
(pictured right). the trade to attend.”
To mark its 100th anniversary, the NFRN was proposing to hold Mr Mitchelson said the venue for the NFRN’s 100th Annual
a major celebration in London, with a second event in the north Conference in June 2019 was currently being explored, with
later in the year. Bournemouth, Torquay and Brighton in the running.
Mr Mitchelson said: “We want to get as many members National councillors were also advised
involved as possible, including those who have been heavily that next year’s spring national council
involved over the years. meeting would be held at the
“Hosting a major event in London would enable politicians and Marriott Hotel in Bournemouth on
senior industry figures to attend,” he added, explaining: “It’s a Tuesday April 17 and Wednesday
great chance to get MPs and business leaders along.” April 18, while the NFRN would
National councillors agreed that the capital should be one of return to Torquay for the 2018
the venues for the celebrations. Annual Conference.
Proposed merger concern when supermarkets are involved Members
The investigation by competition in distribution.” had advised
watchdogs into the £3.7 billion merger Some members expressed concern about the NFRN
of Tesco and Booker should be extended product availability in Booker depots since that from
into the whole of the grocery supply chain, the merger was announced earlier this year. September 1 retail
proposed Peter Robinson. According to Julia Bywater: “The range has terms were being cut
“The independent supply chain is changed and there is empty shelving,” while from 34p to between 10p and 20p,
changing so quickly and fundamentally so Hitesh Pandya added: “We have no depending on the type of ticket sold.
the Competition and Markets Authority availability or variety.” Retailers would also be forced to pay the
should widen the enquiry,” he said. Naresh Purohit said Booker in Crayford coach operator by direct debit rather than
In addition to the proposed Tesco and was now for caterers only. “The nearest paying cash into a National Express account.
Booker move, the Co-op is currently in depot will be Sidcup. That’s totally out of Mrs McCloskey said that having received
exclusive talks to take over Nisa, while order,” he said. legal advice, the NFRN had informed
the future of delivered wholesaler Palmer Mr Baxter said members’ concerns about National Express that it could not change
& Harvey hangs in the balance. availability would be raised at his next retailers’ terms unilaterally and was
Mr Robinson felt these developments meeting with Booker. therefore operating in breach of contract.
warranted a wider investigation by Unveiling the tie-up with Booker in She added that to open up discussions,
the CMA. January, Tesco said it would create ‘the UK’s the NFRN was seeking a meeting with
“I would question how many smaller leading food business’ and deliver significant National Express.
cash and carries will be in existence in two cost savings for the combined group.
or three years time,” Mr Robinson said,
National Express terms
LATEST UPDATE
adding: “The CMA should widen its brief After a meeting between the NFRN and
and look at the supply of grocery to On behalf of members in the West
National Express the direct debit proposal
independent retailers.” Midlands, head of operations Margaret
was dropped. While the margin cut will go
Chief executive Paul Baxter said the McCloskey said the NFRN had gone into
ahead, a working group has been set up to
NFRN could draft a letter of concern to the battle with National Express over its plans
explore new revenue opportunities for
CMA about the general shape of its inquiry. to slash the margin that retailers receive for
affected National Express retailers.
Asked about the NFRN’s view of the selling smart tickets.
proposed Tesco and Booker merger, Mr
Baxter said that it was welcomed, provided
it led to better service, better choice and
better prices for independent retailers.
However, he added: “There is always
Peter Robinson Julia Bywater OCTOBER 2017 NFRNONLINE.COM 17NATIONAL COUNCIL
Lobbying and meetings
Lobbying activity is being stepped up to
increase awareness of the NFRN and its
membership, and to ensure that politicians
better understand the hardships that
independent retailers are facing and the
effect that government decisions can have
on their businesses.
Andrew Taylor Steve Archer
Chairman of public affairs and
communications Mike Mitchelson said that of members that we haven’t previously seen All NFRN members were encouraged to
a dinner would be held in the House of at branch meetings. These trade shows are consider stocking trading cards.
Commons Dining Room with invitations proving to be a real success.” “We want members to become
issued to specific MPs and ministers who destination retailers, so if you are not
were sympathetic to the plight of Cover prices stocking Match Attax I would ask that you
independent retailers and who would help Members affected by vicious margin cuts think long and hard about it. And why not
to highlight the NFRN’s concerns in on regional newspapers should overprice, become a swap shop and hold Match Attax
parliament. said Yorkshire national councillor James events in your store?” Mr Murphy said.
In addition to this, and following the Wilkinson.
election of new MPs after this year’s “To get our margin up this is the only Councillors endorse N3
General Election, the NFRN would hold a action we can take,” he said. N3 received ringing endorsements from
parliamentary reception in Westminster in His Yorkshire colleague Andrew Taylor four national councillors who said that
February. This would coincide with the agreed, adding: “Overpricing is definitely the joining the company had transformed
February national council meeting and way to go.” their businesses.
would take place in the late afternoon or Some national councillors expressed Steve Archer said newspaper and
early evening rather than the lunchtime concern, saying that increasing the cover magazine sales had been in decline in his
receptions the NFRN had previously held. price of a newspaper could send customers stores, but on N3 advice, and after a shop
The NFRN’s plans to meet with all police to competing shops. refit he had reduced his news run by one
and crime commissioners (PCCS) in England Peter Robinson disagreed and said that third and cut the number of publications
and Wales would continue, said Mr news retailers should not shy away from stocked from 600 to 300. His turnover was
Mitchelson, and it was hoped that the overpricing. “There is no downside. People now up by 15 per cent.
NFRN could secure a speaking slot at the use our shops because we are convenient.” “My range is better than it’s ever been
Association of Police and Crime He added that the NFRN should lobby and I am getting the right supply, but the
Commissioners Annual Conference. the government for the removal of fixed biggest saving is to my time. Thank you N3,”
Mr Mitchelson appealed for all NFRN cover prices. Publishers liked to have control he said.
members to play their part by meeting with of the cover price, he added. Leeds roundswoman and sub retailer Kate
their local MPs and PCCS to remind them of Brown said belonging to N3 meant she only
the challenges facing independent retailers. Trading card sales opportunities received the titles she was meant to get,
Independent retailers can score by stocking while Gwen Patterson said that it had
Trade show successes Match Attax trading cards, head of news proved a ‘lifeline’ for the Northern Ireland
NFRN trade shows run in conjunction with Brian Murphy said. retailers who were members. “We fully
cash and carry companies and at news “Many outlets have given up stocking support it. Poor sellers have been cut out
wholesale depots throughout 2017 were these products but there are real and members can refocus their businesses.”
given a massive thumbs-up. opportunities to be had. Match Attax Derby news retailer Alan Smith described
Yorkshire national councillor Andrew trading cards saw growth of 16.5 per cent N3 as “the best thing the Federation has
Taylor said: “The trade show at Wakefield last year while sales of gifting tins were up done in years. We have seen business going
was a fantastic success. Lots of members by 176 per cent.” forward. Any retailer who is serious about
turned up and got lots of benefit from it. There was a new trading opportunity for news and magazines should join N3.”
It’s just the sort of thing the district needs.” Match Attax stockists in the run up to N3 chairman John Parkinson said the
Immediate past president Ray Monelle Christmas, with advent calendars priced at company was progressing well, membership
agreed. “We have held several events £20, which previously have only been numbers were increasing steadily and N3
throughout the country and have seen a lot available in Tesco. retailers continued to outperform their
competitors.
N3 director Brian Murphy added that
there was a 60 per cent discount for NFRN
members wishing to be members. They
could join for just 54p a day.
Insurance cover
The Retail Mutual had witnessed
exceptional growth, with the number of
covers rising to 4,804 – an increase of 552 or
Gwen 13 per cent increase in 12 months, reported
Patterson chairman Peter Wagg.
Its aim now was to move to the next
18 NFRNONLINE.COM OCTOBER 2017 Alan SmithYou can also read
