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WH Smith And Penguin Screw You Over

Posted on | June 11, 2009 | 12 Comments


Today The Outdoor Writers and Photographers Guild (OWPG) issued a call to arms to it’s members and the rest of the world in response to a restrictive deal between WH Smith and the publisher Penguin.

Basically Penguin is giving WH Smith a big kick back in the form of a 72% discount to get exclusive access to all the WH Smith outlets at airports, motorway service stations and railway stations.

So WH Smith is basically pimping out it’s shelf space to the highest bidder. Does that really surprise us? Not really, we probably always suspected it was such. But as long as it was under the table and not shoved in our face we turned a blind eye. A bit like the MP’s and their expense claims.

But in this age of transparency this deal seems very anti competitive, freedom of choice, and seems to be denying us the chance to actually buy good guide books. I know they list in the press release (see below) the major guide book publishers, but lets not forget some of the smaller and in my opinion better quality publishers like Cicerone that are also being shut out by this “deal”.

I admit you and I may not be their target market for those outlets. Like myself before we set off to that foreign destination or UK destination, we already have our guide books, maps etc. But what about the average joe public, who is waiting for that flight, browses the shelves at Smiths, and decides that they will do a walk or two while they are on holiday? They are now limited to those titles from the Penguin stable. Some choice that is.

So with companies like WH Smith acting like our politicians I can’t help feeling just a little bit disappointed. Apparently there have already been calls for a consumer boycott of WH Smith and of Penguin Group imprints, which include Rough Guides, Sawday, DK, Fig Tree, Hamish Hamilton, Michael Joseph, Viking, Ladybird, Puffin and Frederick Warne.

I’m not sure how effective that would be or if the public would get behind it. Do they care? I’d like to think that they do, and that they would back any call to arms against this sort of corrupt behaviour from big business. But this sort of action has to be a thing of last resort. We have how ever foolishly to believe that the Office of Fair Trading (OFT) will protect us and look after our best interests in a case like this, and bitch slap WH Smith and Penguin around the corporate playground.

But in the meantime while I wait for hell to freeze over and the OFT to grow a spine, I will take my business elsewhere and avoid WH Smith and the Penguin stable.

Here’s the full press release from the OWPG:

The Outdoor Writers and Photographers Guild (OWPG) has written to the Office of Fair Trading expressing concern over WH Smith Travel’s plan to make publisher Penguin the sole supplier of foreign travel guides in its airport, motorway and railway station outlets.

The deal would mean only Rough Guides, Dorling Kindersley and Sawday guides would be stocked at the 450 stores, while popular names such as Lonely Planet, AA, Berlitz, Thomas Cook, Bradt, Time Out and Michelin would disappear from the shelves.

According to industry magazine The Bookseller, Penguin is offering WH Smith Travel a 72 per cent discount on the cover price of its imprints.

“By creating a monopoly situation in a very significant section of the retail guidebook market, this deal is manifestly anti-competitive and will reduce choice for consumers,” said Jon Sparks, travel photographer and secretary of the OWPG.

“Although our members’ prime focus is on the outdoors, there are many among us who also produce travel guides, and many more who produce walking, cycling and other outdoors guides for overseas destinations. This move places other publishers at a serious disadvantage and thereby directly undermines our members’ future earnings potential.

“It also appears to be wholly at odds with WH Smith’s well-publicised corporate responsibility policies.”

His sentiments were echoed by guidebook author and editor Sue Viccars, who is also a member of the OWPG. “This unprecedented step will limit choice for the consumer,” she said. “Customers have – quite rightly – grown to expect a broad range of guidebooks at popular sales points such as airports.

“The industry owes its diverse customer base – family, trekker, independent traveller, retired couple and the rest –  this opportunity. Limiting the number and range of authors used will not give a sufficiently broad view of those destinations covered, and many destinations will be excluded altogether.

“This move will severely curtail customer options, and will be highly detrimental to the potential development of the guidebook industry as a whole.’

PS As an act of transparency I am not a member of the OWPG. Just because bloggers give their work away for free on the web we don’t qualify to be members. Nor do we warrant a reply from them either when we enquire about membership. But that is a rant for another time.

Comments

12 Responses to “WH Smith And Penguin Screw You Over”

  1. Trevor D Gamble
    June 11th, 2009 @ 9:15 pm

    I used to work for WHS and can tell you this has always gone on, and too happens with supermarket shelves too in the products stocked there as well! Lonely planet guides are a market leader now in mainstream travellers guides however, so it is unlikely they will vanish from the shelves of WHS retail outlets at airports and too railway stations.

  2. Trevor D Gamble
    June 11th, 2009 @ 9:22 pm

    WHS is oten rather naughty in many areas I am sad to say. Especially in the way it has in the past treated its staff, myself included rather shoddily! I could tell you a few stories there, oh yes! Another thing they have often done – which annoys the hell out of me so much so that I took it up with the magazines publishers in the end – is on the up-pricing of magazines, when a title cost goes up. Several times in the past I found WHS tills updated to the new selling higher price a month or so before it was actually showing upon the magazine covers in printed price! Thi meant I was constantly having to go back to the store and say oy!! What gives!!! TGO was amongst those titles they tried to up-price earlier than they should have done!

  3. Darren
    June 11th, 2009 @ 9:27 pm

    Trevor, thanks for the insight from the inside so to speak.
    Great feedback as always

  4. Roger
    June 12th, 2009 @ 8:01 pm

    In my view what is also worrying is that WH Smith is not just in the UK, they have a store in the Copenhagen Airport and I assume elsewhere so the impact of selective selling of magazines goes beyond the UK.

  5. Darren
    June 12th, 2009 @ 9:06 pm

    Roger, thats a very good point, thanks for bringing it up.

  6. Trevor D Gamble
    June 13th, 2009 @ 4:36 pm

    This was all featured in detail on Radio 4 FM news this morning, including an interview with the lady leading the campaign to boycott buying travel guide books from either WHS or Penguin Books. She is from the Travel Writers Association I think they said. It represents in the airport outlets of WHS a double whammy manopoly as they are the exclusive sellers of suc books there in UK airports too already. That is to say that other suppliers could set up their own train station outlets to sell rival non Penguin Books travellers guides if they so wanted to fight the monopoly attempt, but would be totally unable to do so in airports where WHS holds the news/book stores monopoly already.

  7. Darren
    June 13th, 2009 @ 5:43 pm

    Thanks once again for that Trevor.
    I have found the link on the Radio 4 website for those that want to listen to this
    http://news.bbc.co.uk/today/hi/today/newsid_8098000/8098541.stm

    Remember folks this link may only be active for 7 days.

  8. Darren
    June 13th, 2009 @ 5:48 pm

    Just an open question doesn’t the BBC own Lonely Planet?

  9. Another Storm Is Brewing | whitespider1066.com
    June 15th, 2009 @ 6:21 pm

    [...] a David and Goliath thing by taking on “Big Business” and their abuse of a monopoly (read “WH Smith And Penguin Screw You Over” for more on [...]

  10. Trevor D Gamble
    June 15th, 2009 @ 9:58 pm

    I have never ever heard of the BBC owning LP! I think it rather unlikely, a bit out of their remit I would have thought, but obviously they might have a shareholding there, since they do invest money in lots of strong market leader businesses in the media sector.

  11. Paul Webster
    June 20th, 2009 @ 2:06 pm

    Yes, BBC do own Lonely Planet.

  12. Darren
    June 20th, 2009 @ 6:42 pm

    Paul, thanks for confirming that.

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