Magazine distribution test to move ahead despite continued concerns over disadvantage
A controversial pilot scheme to trial a new method of distributing magazines to newsagents will start in early June despite renewed claims it still leaves newsagents at a competitive disadvantage against supermarkets.
Magazines Publishers Australia along with distributors Gordon & Gotch and Network Services is set to move ahead with the pilot in 20 stores to test changes to a proposed code of conduct for distributors and publishers it says will make newsagents “a destination shop”.
However, Mark Fletcher, director of newsagency marketing group newsXpress told Mumbrella: “My view remains that the trial has not been constructed to meet its stated objective, that it is not testing any process changes that will enable newsagents to be competitive with supermarkets and other retailers of magazines.”
The trial will move ahead under the guidance of the Australian Competition Consumer Commission (ACCC), after the MPA asked for permission from the watchdog to extend it to 40 stores.
