UK MAGAZINE MARKET RETAIL GROWTH Source: Wessenden Marketing, JM \ SD \ WHS wholesale data
UK RETAIL MARKET SHARES 1993 - 2000 New Entrants have gained Significant Share at the expense of the traditional sectors.
UK MARKET DYNAMICS - PUBLISHERS/DISTRIBUTORS Retail market value growth slowed to 1.5% from 10%. Number of Consumer titles grown by 45% in last decade to 3,200. Industry unsolds costs now $230m. Publisher/Distributor consolidation. Subscription sales still only 11% of market Internet “bubble-burst” means investment back into printed media.
UK MARKET DYNAMICS - WHOLESALE Wholesaling is a relic of the former dominance of the local newsagent. Market value growth over the past ten years has supported profitability. The wholesale sector will continue to concentrate.
UK MARKET DYNAMICS - RETAIL Outlets selling Magazines grown by 30% in 7 years New sectors growth Supermarket sales growth will slow Multiple retailer frustration Independents are intrinsically marginal businesses.
WHAT’S HAPPENED IN THE LAST 12 MONTHS? Tesco/WHS announced “National Direct” in March 2000 PPA/NPA fought back Tesco dropped ND in October 2000 - consensual industry approach WHS dropped ND in Dec 2000 Industry “8 point plan” agreed WHS announced planned sale of Wholesale arm in Feb 2001