Future of newspaper supply chain challenged

Introducing delivery surcharges on newspapers that cut retailer margins has little impact on sales, according to research by Newsteam Group.

The home news delivery firm covering 70% of the UK blocked new Telegraph orders and added a surcharge on existing deliveries after the paper reduced margins to just 19.1% earlier this month.

More than 99.9% of Telegraph readers maintained their order after the 4p surcharge and 30 new Telegraph orders are “on hold” due to the protest.

EXCLUSIVE: Newsteam Group suspends new Telegraph orders over margin cut

“This highlights the public support for our services versus the Telegraph’s actions,” said Newsteam’s head of client relations, Paul Goddard.

Goddard said Telegraph margins returning to 20.5% in August should not be viewed as a pay increase. “It’s what we should be getting now,” he said.

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