There has been a significant increase in the number of shoppers experiencing availability issues for some items under food and grocery categories, says a recent report, claiming that 62 per cent of shoppers experienced shortages over last weekend (Aug 27-29).
As per the latest shopper research conducted for the Institute of Grocery Distribution (IGD), about 62 per cent of adults claimed to have experienced shortages of some food and groceries in-store or online recently- up from 56 per cent last weekend.
Concerns are highest in Scotland where almost 72 per cent of the shoppers reported of food and grocery shortage as well as in London where 67 per cent of the shoppers faced shortages.
The report also mentions that shortages are again highest for fresh produce (21 per cent), soft drinks (18 per cent), bakery and dairy (16 per cent each), fresh meat or fish (14 per cent), household paper and chilled products (11 per cent each).
About 38 per cent of the shoppers felt the need to stock up or purchase this weekend more than they normally do- up from 31 per cent last weekend. Stockpiling was seen highest among those aged 18-24 (62 per cent), ABs (46 per cent) and those living in London (51 per cent).
Packaged foods, household paper, hand sanitiser, alcohol, cereals, household products and medicines were being stocked up, as per the report.
IGD's report comes at a time when the supply chain is reportedly under pressure owing to multiple effects including labour shortages due to Brexit.
The implementation of new age-of-sale regulations under the Tobacco and Vapes Bill could present significant hurdles for retailers, according to Inga Becker-Hansen, policy adviser for retail products at the British Retail Consortium (BRC).
Speaking before a House of Commons committee on Tuesday, Becker-Hansen outlined the complexities of enforcing a rolling age limit for tobacco and vape products, as well as concerns about staff training, licensing schemes, and advertising restrictions.
One of the central issues identified by Becker-Hansen is the rolling age limit, a key provision aimed at creating a “smoke-free generation.” She noted that while current rules are straightforward - with a fixed age of sale for tobacco and alcohol products - the rolling age limit could introduce operational difficulties.
“At this point, it is quite identifiable, with those under the regulation being 15,” she explained. “But in 30 years’ time, if you have someone who is 45 versus 44 from the date of January 2009, it may lead to ID for each sale of a given product. This will eventually lead to potential issues.”
Becker-Hansen highlighted that points of sale are often flashpoints for violence and abuse against retail workers, raising concerns about the practical implementation of the regulations. “It is a real concern for retailers that that could be an issue in the future,” she said.
To mitigate these challenges, the BRC is advocating for the use of digital ID systems, which are already being promoted by the Department for Business and Trade for alcohol sales. “A digital ID could possibly make things easier,” she suggested, adding that it could streamline age verification processes for both retailers and consumers.
Licensing scheme
The introduction of a licensing scheme for tobacco and vape products also drew attention, particularly regarding its impact on smaller retailers. Becker-Hansen expressed concerns about the administrative and financial burdens such a scheme could impose.
“Smaller retailers may not have as much capacity with regard to the licensing scheme,” she noted. “It is quite difficult to comment on it at this point, because we do not know the full detail.”
“We would also like to highlight that if the licensing scheme were to follow something such as the tobacco licensing scheme—the idea that licensing authorities could approve or deny certain applications—that could affect long-standing, established, compliant retailers, and that could lead to a loss of revenue for them,” she added.
Additionally, she warned against requiring individual premises licenses for multi-site retailers, citing potential inconsistencies that could affect customer confidence. “If individual licenses had to be applied for, that could lead to divergence across a retail brand, and that affects your overall public retail image for customers,” she explained.
She reiterated the need for clear guidelines and consistent regulations, suggesting that a unified licensing scheme bundling tobacco, alcohol, and vapes could reduce costs and complexity.
“Adding on an additional licensing scheme with additional costs and a separate administrative system makes it more difficult for retailers to handle those things at the same time, particularly smaller retailers and independents,” she said.
“We would also encourage alignment across the regulations in terms of new regulations coming through, such as secondary legislation on the licensing scheme,” she said, calling for ongoing consultation with the industry.
Advertising and recycling challenges
Restrictions on the advertisement, display, and flavours of e-cigarettes also present challenges for retailers, Becker-Hansen revealed.
“Some of the challenges with the restrictions on advertising will be at the point of sale of products for some retailers,” she said.
She also highlighted concerns about how recycling schemes for vapes could be implemented - if they cannot be advertised under the new restrictions.
A robust public awareness campaign is essential to the successful implementation of the Bill, Becker-Hansen argued. “A public awareness campaign would hopefully reduce any potential violence against or abuse of retail workers,” she said.
The Tobacco and Vapes bill is currently at the committee stage in the House of Commons. Witnesses who provided evidence on Tuesday included chief medical officers for the four nations, along with the representatives from health charities, trading standards experts, academic experts and representatives from Royal Colleges.
The UK Vaping Industry Association said they are ‘disappointed’ that no representatives for the sector, nor for the millions of adults who have quit smoking through vaping, were invited to speak at the committee hearings for the Tobacco and Vapes Bill held yesterday (7 January).
The bill is currently at the committee stage in the House of Commons. Witnesses who provided evidence in the morning session included chief medical officers for the four nations and chief executive of heath charity Action on Smoking and Health (ASH) and regional chief executives from ASH in Scotland, Wales and Northern Ireland, along with the representatives from Cancer Research UK and Asthma and Lung UK.
This was followed by a second sitting which saw evidence from public health and trading standards experts, academic experts and representatives from Royal Colleges. Inga Becker-Hansen, policy adviser – retail products at British Retail Consortium (BRC) was the only representative from the retail sector at the session.
UKVIA noted that some of the measures being considered in the bill could have consequences on the effectiveness of vaping as a quitting tool, potentially blocking smokers from making the switch or sending current adult vapers back to cigarettes or to the black market.
“The legitimate industry, which is devoted to helping adult smokers kick the habit and shares the ambition of a smoke free future, as well as the consumers, whose lives have been changed by vaping, should have had a voice in today’s session,” the industry body said.
The UKVIA is hosting an event in parliament today to put forward the industry’s views on the bill, including the potential for a retail licensing scheme – something the association has been advocating for years.
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Single-use disposable vapes are displayed for sale on October 27, 2024 in London, England
Small convenience stores are selling less tobacco, and the tobacco products they do sell are much less profitable to them than vaping products, according to new analysis from the University of Edinburgh.
Profit margins from vapes were far higher than those of tobacco products, with an average of 37.1 per cent for vape products compared to 8.5 per cent for tobacco products in September 2022. For comparison, profit margins were, on average, 21.0 per cent across all product types.
Footfall from tobacco sales has decreased by nearly 40 per cent in small retail outlets compared to less than a decade ago. In 2015, when Action on Smoking and Health (ASH) conducted a similar analysis, 21 per cent of transactions included tobacco, in 2022 University of Edinburgh researchers found 12.8 per cent included tobacco.
Meanwhile, the average weekly number of transactions per store which included vapes rose sharply from 10 in 2019 to 93 in 2022 – a nine-fold increase in three years. Although there were considerably fewer transactions including vapes than tobacco, gross profits per store from vape sales were equivalent to 73.4 per cent of the value of tobacco profits, as a consequence of vapes’ high profit margins.
The analysis highlights the potential benefits to small retailers of existing smokers switching to vaping and shows that tobacco sales are becoming increasingly unimportant for business.
“Our analysis shows that convenience stores now make only 10 per cent of their profits from tobacco and if their customers were buying products other than tobacco stores would benefit from this. Sometimes business and public health interests align – we would all be better off if fewer people bought tobacco,” Professor Jamie Pearce, professor of health geography at the University of Edinburgh, said.
ASH said the profitability of vapes underscores the need for a retail licensing scheme to crack down on irresponsible sellers and protect legitimate retailers.
“Tobacco is yesterday’s product. The reduction in sales benefits both the nation’s health and convenience stores who make dwindling profits from selling tobacco. At the same time vape sales have surged, and this is much more profitable for retailers,” Hazel Cheeseman, chief executive of ASH, said.
“Responsible retailers who are already profiting from vapes should welcome regulations to improve the market, reduce appeal to children and drive out rogue traders.”
While vapes are a useful quitting aid for smokers and far less harmful than tobacco, they are not risk-free and there are concerns about vapes being sold to children. The new Tobacco and Vapes Bill will bring in strict new measures, including a retail licensing scheme and tough marketing restrictions.
In a separate study last year, ASH surveyed small convenience store owners to understand their views further regulations. The survey found that:
51 per cent support raising the age of sale one year every year (26 per cent oppose).
71 per cent support mandatory age verification (20 per cent oppose).
65 per cent support creating a smokefree generation (17 per cent oppose).
79 per cent support fixed penalty notices for breaches of age of sale regulations (13 per cent oppose).
The University of Edinburgh analysed data from 1,503 convenience stores using data from electronic point of sale supplied by The Retail Data Partnership. The analysis focuses upon comparison of data from the weeks 7-13 September 2019 and 7-13 September 2022.
The Scottish Grocers Federation (SGF) Go Local Programme launched on 1 December 2020, and set out to support convenience stores throughout Scotland to provide dedicated, long-term display space for locally sourced Scottish products, to drive local sales and ultimately support the economic recovery of Scotland’s’ food & drink sector from Covid-19.
The project, delivered with the support of the Scottish Government and Scotland Food & Drink, has gone from “strength to strength”, providing dedicated space for local products under the Go Local banner.
Findings in a new joint report published today (8), show a remarkable increase in Scottish products being sold over the counter in participating stores. Averaging a 44 per cent growth in sales of goods sourced from local producers. It also highlights a significant multiplier impact and boost for the local economy, with expected increases of around £169k per store per annum.
Administered by the SGF, the Go Local Programme provides individual grants for retailers to invest in developing a dedicated space for local products (£5,500 in 2024) and has a particular focus on facilitating “meet-the-buyer” events linking up local retailers with producers in their area.
“We have seen the number of people wanting to support local producers continues to grow and this independent report shows the real impact that the Go Local Programme has had in getting more and more of our fantastic local food and drink on the shelves of convenience stores, a vitally important sector,” said Rural Affairs Secretary Mairi Gougeon. “The programme is bringing real benefits to local communities, supports the economy and importantly offers more opportunities for our wonderful food and drink producers to showcase their products.”
Jamie Buchanan, Go Local Programme Director, said: “The fantastic thing about Go Local is that it is a win-win for everyone. Customers ensure they are getting only the best quality local produce and boosting the local economy at the same time. Meanwhile, producers and retailers get direct access to their local market while also improving sustainability and cutting out long-distance transport costs.
“It’s no surprise that the programme has gone from strength to strength since its launch in December 2020, and this report confirms the positive impact for participating stores. It has been great to work with both Leigh and Maria developing the report and I want to thank them, and all involved in delivering the programme these past four years.”
The in-depth report on the project has been developed by Research Fellow, Dr Maria Rybaczewska, and Professor of Retail Studies, Leigh Sparks, from the University of Stirling.
“The Go Local Programme has demonstrated that concerted action from retailers and producers to highlight and spotlight local products provides a significant and sustained growth in sales of these products and overall for the stores,” said Prof. Sparks.
“Joining the project makes a huge difference in the overall performance of local products, with the increased multiplier effect building community resilience and the focus on local producers and products reducing the carbon and environmental impacts locally and nationally.”
Scotland Food & Drink have also been instrumental in expanding the range of compliant products available through the project.
Scotland Food & Drink Programme Director, Amanda Brown commented: “The Go Local Programme is a great example of how selling and promoting locally sourced Scottish products can build sales both for the retailer but also the producers. Research tells us that Scottish consumers want to buy more Scottish brands and products, and the project is helping make this happen.”
The Portman Group’s seventh annual survey in partnership with YouGov reveals more people are drinking low and no alcohol alternatives than ever before, showing the UK is drinking more moderately than ever.
The results show that well over a third (38 per cent) of UK drinkers are now consuming low and no alcohol alternatives semi-regularly (12 per cent regularly and 26 per cent occasionally) – compared to 35 per cent in 2023 and 29 per cent in 2022, with a notable increase in regular consumption from eight per cent in 2023 to 12 per cent in 2024.
Young adults continue to drive the trend as the biggest consumers of low and no alcohol alternatives, with close to half (46 per cent) of 25-34 year olds surveyed considering themselves either an occasional or regular drinker of alcohol alternatives, compared to 37 per cent in 2023. Whilst 40 per cent of 18-24 year olds also drink these products semi-regularly.
Trends show that the younger generation also continue to be the most sober age group overall, with 39 per cent of 18-24 year olds not drinking alcohol at all.
The results continue to highlight the positive impact of low and no alcohol alternatives in helping people to moderate their drinking, with almost a quarter (24 per cent) of current alcohol drinkers stating that their weekly consumption has fallen due to low and no alcohol products, up from 23 per cent in 2023 and 21 per cent in 2022.
The survey also highlights an increasingly health-conscious UK consumer, with 29 per cent of low and no drinkers citing collective “health and medical” concerns as a key reason for choosing an alcohol alternative – an increase of almost a third (32 per cent) when compared to 2021 (22 per cent).
Not only are UK drinkers increasingly using low and no alcohol alternatives as a tool with which to moderate their drinking, but their rise in popularity is playing an important role in helping to tackle wider alcohol harms such as drink driving.
For the seventh year in a row, being able to drive home from social events is the number one reason cited by low and no drinkers for choosing an alcohol alternative, with over a quarter (28 per cent) stating they will most commonly drink low and no alternatives in situations where they are unable to have a regular strength alcoholic drink such as when they are driving. This is especially important as pubs and bars remain the most popular locations for adults to drink low and no alternatives.
While our research continues to tell a positive story of how low and no products are becoming increasingly normalised in everyday life, almost a quarter of adults (24 per cent) would still like to see more low and no options available on tap in pubs to further encourage them to drink. They also want to see greater use of price promotions (30 per cent) and greater availability of low and no products in non-traditional hospitality spaces (26 per cent) such as nightclubs, theatres, cinemas and live music and event venues.
“It’s fantastic to see low and no alternatives continuing to soar in popularity, while helping to encourage more mindful and moderate consumption among UK alcohol drinkers,” said Matt Lambert, Portman Group CEO. “We welcome the drinks and hospitality industry continuing to work together to increase choice, availability and visibility of low and no alcohol alternatives, and we continue to urge the UK government to provide us with the outcome of the recent consultation on low alcohol descriptors which will further facilitate growth of the UK low and no alcohol market.”