WMT's problem with the magazine is really a problem with the wholesaler's demand for a seven-cent surcharge on delivery of each copy of the magazine. However, this New York Post article notes that the problem goes far beyond WMT and the swimsuit edition.
The article says that the problem boils down to two wholesalers: Source Interlink and Anderson News. The duo enacted the surcharge three weeks ago in hopes of "shoring up" a money-losing business. However, it certainly appears that this strategy may have backfired, as Time Inc., Bauer Publications, and American Media (three publishing giants) all refused the surcharge.
Source Interlink now says that it has rescinded the charge and the triumverate of publishers is now colluding to keep their publications from Source Interlink and Anderson News. These two wholesalers control roughly 50% of national retail periodical sales. Perhaps they are right and the publishers are trying to flex their muscles here.
Bottom line, it isn't just the swimsuit edition caught in the crossfire; People, the National Enquirer , and Star are all supposed to have new issues at retail outlets today -- and many shoppers will find empty magazine racks. Those empty racks translate to lower sales for the retailer, which has managed to buck the trend of fading sales.
Reportedly, WMT is trying to help the publishers and wholesalers in their quest for an agreement -- but it isn't happening. For what it's worth, WMT's support falls firmly behind the wholesalers. We will see if the yellow smiley face will still be smiling when the swimsuit edition may hit its shelves.
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