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Daily Star cuts retailers' margin

Retailers will reduce retailers' margins by 1.21p for every copy sold.

The Daily Star, owned by Richard Desmond, is to pay retailers on the basis of a standard cover price of 20p across the UK, instead of the current 25p.

The move will reduce multiple and independent retailers' margins by an extra 1.21p for every copy of the paper sold.

According to MediaWeek, the Daily Star - which has a circulation of 820,000 in the UK - had reduced the cover price from 35p to 25p in November 2008. It further reduced the price to 20p this year.

Accordingly, retailers' margin fell from 8.47p to 6.05p in November 2008, and further slid to 4.84p this year.

The National Federation of Retail Newsagents (NFRN) has condemned the move by the Daily Star, which is expected to further reduce its cover price to 10p in July.