Comments on: Newspaper sales fall but profits still buoyant http://www.betterretailing.com/2010/02/newspaper-sales-fall-but-profits-still-buoyant/ Energising independent retailers Tue, 07 Sep 2010 12:29:58 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Steve http://www.betterretailing.com/2010/02/newspaper-sales-fall-but-profits-still-buoyant/comment-page-1/#comment-407 Steve Mon, 22 Feb 2010 17:05:50 +0000 http://www.betterretailing.com/?p=1378#comment-407 Thanks Sam, I am glad that you have looked at the inflation issue. You beat me to it. I think that the effect of inflation is often over looked by retailer of all sizes. The real worry of your observation is that the past 13 years has been a period of relatively low inflation. The kick up in price increases that last weeks government statistics suggest means that the next 12 months as the VAT rise and further fall in Sterling against the US Dollar work their way through is going to be very challenging for us all. Steve Thanks Sam, I am glad that you have looked at the inflation issue. You beat me to it. I think that the effect of inflation is often over looked by retailer of all sizes.

The real worry of your observation is that the past 13 years has been a period of relatively low inflation. The kick up in price increases that last weeks government statistics suggest means that the next 12 months as the VAT rise and further fall in Sterling against the US Dollar work their way through is going to be very challenging for us all.

Steve

]]> By: Sam Walton http://www.betterretailing.com/2010/02/newspaper-sales-fall-but-profits-still-buoyant/comment-page-1/#comment-406 Sam Walton Mon, 22 Feb 2010 16:14:27 +0000 http://www.betterretailing.com/?p=1378#comment-406 An interesting piece of analysis, Steve. I wondered, though, whether these increases in estimated retail margin would still be observed if the 1997 figures are adjusted for 13 years of inflation. Using this page (http://www.watsonwyatt.com/europe/pubs/statistics/render2.asp?ID=1), using the Retail Prices Index, it appears that prices have risen by just under 45% since 1997, which means that that year's estimated retail margins, in "2010 money" are as follows: Daily Mail – £264,439 The Sun – £369,006 Daily Telegraph – £172,593 Daily Mirror – £247,736 Times – £114,698 Guardian – £65,315 Daily Express – £149,977 Daily Star – £68,083 FT – £81,861 Independent – £36,320 …which means that the only titles to have offered in a *true* increase in retail margin over that time period are The Times and The Guardian – and some, like The FT and the Daily Express, have experienced a massive decline. An interesting piece of analysis, Steve. I wondered, though, whether these increases in estimated retail margin would still be observed if the 1997 figures are adjusted for 13 years of inflation.

Using this page (http://www.watsonwyatt.com/europe/pubs/statistics/render2.asp?ID=1), using the Retail Prices Index, it appears that prices have risen by just under 45% since 1997, which means that that year’s estimated retail margins, in “2010 money” are as follows:

Daily Mail – £264,439
The Sun – £369,006
Daily Telegraph – £172,593
Daily Mirror – £247,736
Times – £114,698
Guardian – £65,315
Daily Express – £149,977
Daily Star – £68,083
FT – £81,861
Independent – £36,320

…which means that the only titles to have offered in a *true* increase in retail margin over that time period are The Times and The Guardian – and some, like The FT and the Daily Express, have experienced a massive decline.

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