Retail Sales (Firm Sale) - Consumer Magazines

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Retail Sales (Firm Sale) [Print/Digital]

A copy sold to a retailer, on a firm sale basis, intended for resale as a single copy to a consumer.

Principles

1. Single copy made available for purchase by the consumer from the retailer

2. Copies are purchased from the publisher by the retailer, on a firm sale basis, either direct or via the distribution chain (typically distributor and/or wholesaler)

3. It must be clear that the price paid by the consumer includes the publication

4. The retailers’ ability to vary supply must not be unduly restricted

Requirements 

1. Single copy made available for purchase by the consumer from the retailer

1. Contractual arrangement with the retailer must make clear that copies are for resale to the consumer.

2. The purchase by the consumer may be in cash or by other means agreed by ABC in writing.

3.  The consumer must pay at least minimum legal tender per copy

4. Multipacked (or banded) magazines (Print only):
   
   A magazine is defined for ABC purposes as being sold as part of a Multipack (i.e. where it is packaged or banded together as a unit with other issues or publications) only if two or more publications in that pack are included in an ABC circulation claim. 

   1. Only one publication claimed: 

      If only one publication that is sold as part of a package is to be included in an ABC circulation claim, (‘the lead title’) then the sale of the pack will be treated for ABC purposes as the sale of just that publication. Note: 

      • It must be clear from the pack itself which publication is the lead title (i.e. the one which can be included in an ABC claim). 

      • The lead title cannot be a back issue or promoted as ‘free’.

   2. Two or more publications claimed

      • Sales of Multipacks must be separately and clearly identified on newstrade reports and documentation

      • If a magazine in the pack is a back issue or is at all promoted as ‘free’ then it cannot be claimed as a sold copy for ABC purposes

        Note:

        • A free publication (or one promoted as free) included in the multipack may be eligible to be claimed as Free Pick Up. Please refer to the appropriate section for requirements and reporting. If a publication is claimed as a free copy within a retail multipack it must be detailed on the multipack breakout for the paid publication.

5. You cannot claim back issue sales to the retailer.

Guidance Available

2. Copies are purchased from the publisher by the retailer, on a firm sale basis, either direct or via the distribution chain (typically distributor and/or wholesaler) 

1. ‘Firm sale’ means that unsold copies are not returned or reported for credit.

2.  You must account for sales on an issue by issue basis. 

Guidance Available  

3. It must be clear that the price paid by the consumer includes the publication

1. If a voucher from a publisher controlled promotion is used the amount paid by the consumer is deemed to be the total of the cash paid to the retailer and any cash they paid for the voucher.
   
   
2. You can ignore the value (or perceived value) of any gifts or other incentives. However cash reimbursements to the consumer must be taken into account.   
   
   
3. You must retain details of promotional or special offers during the reporting period.
   
   

4. Copies sold to the retailer can be claimed as retail sales unless there is evidence to the contrary, in which case claims should be adjusted as follows:

   1. The retailer distributes copies free to the consumer (these should be removed from claim)

   2. The consumer makes full payment using a voucher from a publisher controlled promotion (these should be removed from the claim).
      
      For the avoidance of doubt: copies disposed of by the retailer (not provided to a consumer) do not need to be deducted.

Guidance Available

4. The retailers’ ability to vary supply must not be unduly restricted 

No additional requirements

Reporting

You will report retail sales as follows, which will be broken out on the ABC Certificate:

1. By print and digital copies, by total average retail sales (combined with single copy sales) over the period, by geographical type:

1. United Kingdom and Republic of Ireland;

2. Other Countries

2. Publications must report issues sold as part of a multipack by:

1. Identifying the other publication(s) in the multipack
   
   
2. Listing only publications that are part of an ABC circulation claim (could be either Retail Sale or Free Pick Up)
   
   
3. Specifying the quantity and percentage of each issue's Paid Single Copies (total retail sales and single copy sales) sold in the multipack. 

3. Repurposed Unsold Retail Copies:

1. Calculate and report the percentage of repurposed Multipack copies as a proportion of Actively Purchased circulation.
   
   
2. Combine all repurposed copies (from Multipacks and other categories) and report the total repurposed copies as a percentage of average total circulation.
   
   

Guidance

G1. Single copy made available for purchase by the consumer from the retailer

1. Cash means legal tender notes and coins, cheque, credit/debit card, wireless payment systems.
   
   
2. This doesn’t preclude a retailer selling more than one copy to a single purchaser (without the publisher’s knowledge).
   
   
3. Multipacks
   
   
   1. Identification of lead title could be achieved by:
      
      
      • The promotion identifying the lead title as the publication that is purchased and that the other publications in the pack are free. For example: ’Buy X get Y free’, where X would be the lead title; or
        
        
      • The lead title’s greater prominence. For example the publication whose front page is visible at the front of the pack.
        
        
   2. Sales of multipacks being separately and clearly identified on newstrade reports and documentation could be achieved by:
      
      
      • Making the external packaging/band of the multipack carry a price as well as a unique barcode (that is different from the barcode carried on any of the constituent publications).
        
        
      • Not printing the multipack barcode and price on any of the constituent publications (to avoid sales of individual publications being incorrectly recorded as multipack sales).
        
        

One magazine claimed examples:

1. ABC News (cover price £1) and ABC Celebrity (cover price £2) are packaged together, sold for £1 and promoted as ‘Buy ABC News and get ABC Celebrity free’. In this case ABC News can be claimed (at the pack price of £1) because ABC Celebrity has been promoted as free.
   
   
2. ABC News (cover price £1) and ABC Celebrity (cover price £2) are packaged together, sold for £1 and promoted as ‘2 for 1’. If ABC Celebrity has its cover facing out of the front of the pack and the front cover of ABC News is not visible from the outside of the pack then only ABC Celebrity can be included in an ABC circulation claim and for ABC purposes each copy of the pack sold will count as a copy of ABC Celebrity sold for £1.

Two magazine multipack examples

1. ABC News (cover price £1) and ABC Celebrity (cover price £2) are packaged together and sold for £2.20 with the package having its own unique barcode. Copies of each magazine sold in the package can be claimed as retail sales, with ABC News being treated as sold at 73p and ABC Celebrity as £1.47 (package price pro-rated 1/3 and 2/3 respectively).

2. If ABC Celebrity was multipacked with a back issue of ABC News for £2.20, then the copies of ABC News could not be claimed as sales for ABC purposes (because multipacked back issues are disallowed) and the copies of ABC Celebrity could be claimed as sales for the price of £2.20

3. If ABC Celebrity was multipacked with an issue of ABC News for a pack price of £2.20, and ABC News is being promoted as being free, then: the copies of ABC News could not be claimed as sales for ABC purposes because they are promoted as free and the copies of ABC Celebrity could be claimed as sales for the price of £2.20

G2. Copies are purchased from the publisher by the retailer, on a firm sale basis, either direct or via the distribution chain (typically distributor and/or wholesaler)

1. You will need to ensure all records required to support the retail sale claim are available for audit. This will include: 

   1. Full issue by issue details of all financial records and contracts with distributors, wholesalers and retailers, with specific regard to normal and recognised trade terms. These must be reconcilable to the distribution records on an issue specific basis and to the average retail sale claim.

   2. Details of any change in trading terms from firm sale (if allowed) to sale or return (either temporarily or permanently) or vice versa.
      
      
   3. Details of discounts or special offers.
   1. 1.  

G3. It must be clear that the price paid by the consumer includes the publication

1. As the price paid may be affected by promotional schemes you should keep details of purchases and promotional spends so you can demonstrate copies are purchased and that sales under incentives/offers are classified correctly, or disallowed as necessary.
   
   You can contact ABC for confidential advice, supplying copies of the promotional material and offer wording.
   
   The information kept may include:
   
   
   • Title/s involved
   • Issues involved
   • Duration of promotion
   • Retail outlets involved
   • Wording of the promotion displayed at the retail outlet/s
   • How the resultant copies are claimed
   • How the promotion will be paid for.