Bauer Media to Pursue Alternatives to Traditional Newsstand Supply Chain

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... Continue reading at 'Folio Magazine'

[ Folio Magazine | 2019-06-11 20:01:50 UTC ]

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