Asda set for magazines price assault

Retailer Asda is planning an assault on the magazine market, by offering massive discounts on all consumer titles. The move, which will form part of the supermarket giant’s everyday-low-pricing (EDLP) strategy, is likely to start a price war.

Publishers say that the strategy is unlikely to fuel value growth, but will eat into their margins instead.

This will be the first time a UK supermarket has offered magazines at a discount to the printed price on a long-term basis. In the past, retailers have run discount offers, but for limited periods. The magazine industry, like the packaged goods market, can only recommend retail prices.

An industry observer says Asda has already trialled the EDLP strategy on children’s magazine titles.

One magazine publisher says: “Most titles are already at knockdown prices. Asda’s move will reduce publishers’ profit margins.”

A distributor adds: “I do not think an EDLP strategy on magazines will bring in new readers. It will merely reward loyal readers. My concern is that this will just steal market share from other retailers.”

The magazine industry expects Tesco and other retailers to follow Asda’s lead in offering consumers low-cost magazines.

Asda had no comment as Marketing Week went to press.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here