Shell is axing all magazines from its more than 350 sites, sparking widespread concern about the future of the category in forecourts, Better Retailing can reveal.
One senior industry source confirmed that publishers were told of the move at the beginning of April, with the first wave of sites already having removed the category. Better Retailing understands deliveries of new editions with longer on-sale periods, such as monthlies, have already been cancelled from all sites. The exiting of the magazine market across the estate is to complete in the second week of May.
A spokesperson for Shell confirmed that Shell was “in the process of removing magazines from locations that had them ranged” but pledged there would be “no material change” to their newspaper ranges, with local and regional titles still offered.
Shell’s spokesperson told better Retailing: “We have seen the impact of consumers moving to digital versus print that has accelerated over the last number of years. We are exploring digital options and solutions for customers to access a wider range of magazine titles and we plan to pilot this in the very near future.”
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The move has sent shockwaves across the industry, where more forecourt chains are allegedly facing similar profitability issues. “This is the largest single loss of sites since Aldi withdrew from the category in 2019 and the danger is that this is the first domino,” the source added. “There are a good number of forecourt chains with hundreds of sites each in a similar situation in terms of magazine profitability.”
They added that the revenue loss is “huge” for publishers and wholesalers, but local shops stand to gain magazine sales due to reduced competition.
Another publishing insider told better Retailing: “”There’s been talk for some time that the magazine segment in forecourts could explode, I’d heard that up to 60% of the big operator’s magazine ranges were unprofitable. The category is facing fierce competition for space as forecourts introduce more food to go and better retail ranges. Newspapers are a lot more shielded. They perform better and because they’re often located in outdoor spaces with less alternative uses, they are a lot more resilient to the types of pressures magazines are under.”
A spokesperson for Smiths News told better Retailing: “We are aware of Shell’s intentions to remove magazines from stores, and whilst that’s disappointing news for the industry we understand that retailers have to make difficult decisions about which categories and products to stock.”
A Menzies Distribution spokesperson also added that Menzies was working with partners like Shell to “support long-term category plans, promoting and ensuring a sustainable future.”
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