Bauer Media to Pursue Alternatives to Traditional Newsstand Supply Chain (foliomag.com)

After years of consolidation among magazine wholesalers, newsstand-first Bauer appears to be exploring ways to bypass the space’s two dominant players.

The publisher of the two top-selling magazines on American newsstands has initiated a process aimed at exploring alternatives outside of the traditional magazine-retail supply chain, which has become dominated by two major wholesalers following years of decline and consolidation.

Bauer Media USA, publisher of newsstand and supermarket checkout mainstays Woman’s World and First for Women—the number-one and number-two best-selling magazines, respectively, at retail in the U.S.—has retained advisory firm FTI Consulting to lead a formal RFP process, soliciting bids from wholesalers who distribute other products, like consumer packaged goods, to supermarkets and retail outlets, but not periodicals.

Driven by steep declines in single-copy sales, two decades of collapses and mergers among magazine wholesalers—the companies that purchase physical copies of magazines from publishers and national distributors and then sell them to retail outlets like bookstores and supermarkets—has left around 90% of the market in the hands of two players: the Smyrna, Ga.-based American News Company (formerly known as The News Group), and Parsippany, N.J.-based Hudson News Distributors, according to estimates from multiple sources familiar with the magazine retail supply chain.

“The distributors responsible for supplying magazines and periodicals to virtually all of our concessions are The News Group and Hudson News Distributors,” wrote the publicly traded parent company of the Hudson News retail chain (which operates under separate ownership from the wholesaler Hudson News Distributors), in the “risk factors” section of its 2018 annual report. “Future amalgamation may reduce the number of distributors even further. As a result, these distributors may have increased bargaining power and we may be required to accept less favorable purchasing terms.”

Bauer Media was unwilling to elaborate on the announcement, but such consolidation—in contrast to the mid-’90s, when few if any individual wholesalers controlled more than 10% of the market—would likely have an acute impact on the company, which, unlike most mass-market magazine publishers today, relies on retail sales as its primary distribution channel, as opposed to mailing issues directly to subscribers.
more at source: https://www.foliomag.com/bauer-media-explore-alternatives-traditional-magazine-retail-supply-chain/

Back To Top
Close search
Search