Smiths News said it is trying to be “incredibly responsible” with its carriage charges as it announced new services for new and existing customers. 

The wholesaler’s chief executive, Jon Bunting, spoke to Better Retailing to discuss its half-year results, which showed bumper profits – up by 3.2% despite a 0.6% drop in revenue. 

One trial includes delivering parts to engineering companies while another includes expanding its cardboard recycling services to other premises, thought to be predominantly betting shops. The company also highlighted an expansion of its greetings cards, books, DVD and recycling services for retailers. 

Challenged on whether the broader range of goods on vans would affect its carriage charges, which usually increase in July, Bunting said there was “no reason to believe” retailers would see an increase related to these additions. 

He added: “I’d like our customers to understand we are trying to be incredibly responsible in the way we think about the news magazine category and the way we think about our relationship with our independent customers. We’ve got a proven track record over the past few years of being very mindful of the impact carriage service charges have on our retail customers. If you look at our five-year history, there have been a number of years when we’ve not put an increase through. In every year, our increases have been much less than the inflationary pressures.” 

Despite the approach, industry experts had told Better Retailing that carriage charges were making the category unprofitable for some sites, driving a wave of forecourt groups and independent stores exiting newstrade categories last year. 

EXCLUSIVE: Retailer terms revealed for Hallmark greetings cards supplied by Smiths News

At the beginning of 2025, Smiths News said it supplied around 22,500 customers. In its results last week, this had fallen by around 400 stores, equivalent to a 1.8% drop in four months. 

Commenting on the trend, Bunting said: “The level of decline has slowed over the past 12 months, but customers each week still cease to take the category. It’s a relatively modest number, and many continue to join us as well.” 

The chief executive added: “I never want to lose a customer, whether it’s a forecourt customer or an independent customer, not least because [a newspaper or magazine] is an impulse purchase for many people. If we can make it convenient for them to buy newspapers or magazines, that’s what they’ll continue to do.” 

Asked how else Smiths News was ensuring it remained a profitable partner for stores, Bunting referred to its rollout of Hallmark cards in independent stores, and its supply of books and DVDs into supermarkets. 

He added: “We’re making good progress with books. If there’s a way we could find a suitable range for independents – recognising that space is always at a premium in independent stores and therefore the category has to earn its space – we’d be delighted to. When asked about a timeline for books to be made available to independent retailers, he added: “I don’t think it’s likely to happen in the second half of this financial year, but I wouldn’t rule it out in the subsequent year.” 

Bunting added that these services were something retailers “should be positive about”, saying that as the makeup of an independent store has changed significantly over the years, Smiths was seeking to meet modern demands. “I’d like our customers to be encouraged by the fact that, just as they are broadening their offers, Smiths News is broadening its services.” 

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