News retailers are threatening to delist the Daily Star after publisher Northern & Shell's decision to cut its price to 25p, reducing retailers' share to 6.05p, and to 40p on Saturday, a cut of almost 5p to the retailer.
The publisher announced this week that a temporary price reduction for the Daily Star had achieved sales increases of 26% year on year.
In a statement which echoed News International's words when making a similar price cut on The Sun two weeks previously, Northern & Shell said: "We have reviewed the promotion and have no current plans to revert to 35p, so the national cover price is 25p." Retailers' margin remains at 24.2%.
National Federation of Retail Newsagents (NFRN) president Suleman Khonat called the Star's move "circulation suicide".
"Without anywhere near the volume sales strength of The Sun, the Star is expecting continuing support from retailers, who may wonder whether the display space that they give in their shops is generating sufficient profit," he said.
"Retailers will no doubt be working out what carriage charge and operational overheads they have to pay in order to receive and sell the Star, and deciding whether they are now making any profit at all."
Khonat added that the Star was throwing away a golden opportunity to work with retailers who were angry at the The Sun's action. "Instead, it has also stuck a knife in the newsagent's back," he said.
"While many might find the income from high-volume sales of The Sun impossible to resist, I don't know a single retailer who would go out of business if they didn't sell the Star."
The publisher announced this week that a temporary price reduction for the Daily Star had achieved sales increases of 26% year on year.
In a statement which echoed News International's words when making a similar price cut on The Sun two weeks previously, Northern & Shell said: "We have reviewed the promotion and have no current plans to revert to 35p, so the national cover price is 25p." Retailers' margin remains at 24.2%.
National Federation of Retail Newsagents (NFRN) president Suleman Khonat called the Star's move "circulation suicide".
"Without anywhere near the volume sales strength of The Sun, the Star is expecting continuing support from retailers, who may wonder whether the display space that they give in their shops is generating sufficient profit," he said.
"Retailers will no doubt be working out what carriage charge and operational overheads they have to pay in order to receive and sell the Star, and deciding whether they are now making any profit at all."
Khonat added that the Star was throwing away a golden opportunity to work with retailers who were angry at the The Sun's action. "Instead, it has also stuck a knife in the newsagent's back," he said.
"While many might find the income from high-volume sales of The Sun impossible to resist, I don't know a single retailer who would go out of business if they didn't sell the Star."
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