WH Smith has shelved its radical plan for a national magazine distribution network for big retailers in favour of an eight-point scheme.


It bowed to pressure and announced an industry solution after talks with the Periodical Publishers Association and newspaper equivalent, big magazine distributors and newspaper publishers.


The solution will see at least two new central publication units (CPUs) set up by wholesalers to provide information services, copy management and invoicing.


Publishers, retailers, distributors and wholesalers will decide the scope of CPUs, industry standards and will enter contracts for CPU services.


Opponents of WH Smiths original plan said the exclusive service to major magazine retailers would bypass local wholesalers and hit independent newsagents.


WH Smith, which corners up to 20% of the magazine market and 3% of papers, saw its shares gain 19p to just over 444p after it said it was reconsidering.


For the first time the PPA has agreed that retailers will have contractual relationships with publishers, said WH Smith chief executive Richard Handover.


This will enable them to take part in the development of the magazine category and planning and design of the supply chain.


Last month Daily Mail and General Trust warned it would drop WH Smith as its main distributor, worth 100m and 200m papers (PrintWeek, 8 December 2000). This is now back on track.


The PPA said: We welcome WH Smith rejoining industry talks and working towards consensual decisions.


Story by Jez Abbott