Home' The Channel Magazine : August 2010 Contents 10 National Newsagent August 2010
NDD WINDING UP
The final distribution of products by NDD
took place on 28 July and NDD will continue
to manage retail accounts until the full
sale/return cycle is completed.
General Manager of NDD Mark Darton
said all products supplied by NDD will be
recalled and agents should return products
in the normal way. NDD will honour all
credits under the current terms of trade.
Network Services will take over the
distribution of most of NDD's clients from
NDD EXIT DISTURBS
As NDD withdraws from the newsagency
channel there have been unexpected
consequences and complications for
newsagents in different states.
With most magazine titles transferring
to Network Services, agents are
concerned about cash flow issues due to
Network's less favourable trading terms.
Agents without Network accounts
may be left as subagents for titles they
previously received direct from NDD.
As returns dwindle it will be uneconomic
for agents to return full copies of NDD titles.
Agents in Tasmania are concerned that
distributor Davies Bros will not have the
facility for proper magazine distribution
such as an early return function, 30 day
terms and access to XchangeIT.
Agents say that Fairfax Media is not set
up for magazine distribution nationally and
they are expecting their associations to
look closely at these issues.
General Manager of Fairfax Media
Publication Solutions, Adam Gray, said
that Fairfax Media Publication Solutions is
working to upgrade its operational systems
to streamline processes and improve
relationships with newsagents. FMPS will
be joining XchangeIT and is working with
internal stakeholders to review Connect's
capabilities and functionality.
Total system integration which is
expected to take a few months will allow
agents greater flexibility in managing their
own supply levels.
Currently Fairfax Media Publication
Solutions is in negotiations with publishers
and will service the business requirements
of between 40--80 titles previously on the
NDD platform. Gray said that at this time
commissions will follow the existing Fairfax
Media agreements, however, all options are
being explored with key stakeholders. Fairfax
Media Publication Solutions will be providing
updates for the industry in the coming weeks.
SEEK INCREASE IN
Metropolitan distribution agents in South
Australia are disappointed that they
have not been granted an increase in
commissions as expected on 30 June.
After presenting a submission outlining the
need for a commission increase, ANF--SA
was waiting for a response from News
Limited's Advertiser newspaper.
However, by 1 July there had been no
response. News Limited has stated that
their "review period" is from March to
May. However, last March to May they did
not grant any increase due to the ongoing
With the increasing distribution
costs, wage rates and petrol, plus the
loss of customers due to 'migration',
agents considered it only fair that some
increase be granted.
According to ANF--SA State Manager
Colin Shipton, News Limited operates
seven delivery rounds in South Australia
so should be well aware of the costs of
LOTTERY ISSUE IN VIC
VANA recently attended a meeting
with Tony Robinson, the Gaming,
Consumer Affairs and Minister assisting
the Premier on Veterans Affairs, on the
topic of Tattersall's dedicated area in
The contracted Tattersalls dedicated
counter space cannot be used for
Tattersalls products since lottery
deregulation in Victoria. It cannot be used
for the new Intralot products and it means
valuable counter space is not able to be
VANA outlined to the minister that it had
evidence to clearly show how it is affecting
Intralot performance within newsagencies
and expected the Minister to clarify the
Government's position on this matter and
as previously promised.
The Minister explained that the
government cannot act due to probity
issues with other current licence
applications still not completed and that
he was aware that performance was
still a concern with Intralot. He said the
Government will sit down and discuss
these issues with all parties as soon as
VANA questioned the Minister on whether
they could make legislative changes to the
current contract. The Minster explained
that this would mean unilateral change,
something never done before.
The Australian Newsagents' Federation
(ANF), the Australian Retailers Association,
Australasian Association of Convenience
Stores (AACS) and the Service Station
Association of Australia (SSA) have been
working with researchers from Deloitte to
create the State of the Independent Retail
The State of the Independent Retail
Sector Report provides a snapshot for four
sectors; independent service stations,
convenience stores, newsagencies and
independent fashion retailers in Australia.
For each of the four sectors, this report has
canvassed the following issues: ownership,
size, operations, employment, market
trends, key challenges and opportunities.
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