ACS calls for proper discussion on licensing scheme in Tobacco and Vapes Bill
The Convenience store body is outraged over the lack of consultation in the new Tobacco and Vapes Bill, which will impact retailers selling tobacco, vape, and nicotine products.
Convenience store body has expressed concern over licensing scheme for retailers to sell tobacco, vape and nicotine products in England, Wales and Northern Ireland under Tobacco and Vapes Bill introduced in the Parliament today (5), saying that the licensing scheme has been outlined without any consultation with the retailers who will be most affected by it.
The Bill confirms the Government’s intention to create a "smoke free generation" by phasing out the sale of tobacco products to anyone currently aged 15 or younger. The generational ban will come into force in 2027, meaning that there will be a single date that retailers have to reference for age restricted sales on tobacco – rather than checking if a customer is over the age of 18.
The Bill will also include powers to introduce a licensing scheme for retailers to sell tobacco, vape and nicotine products in England, Wales and Northern Ireland, and will introduce on the spot fines of £200 to retailers found to be selling these products to people underage. The licensing scheme, which has been outlined without any consultation with the retailers that will be most affected by it, includes the potential to limit the number of businesses in an area based on their proximity to other retailers in the area as well as other conditions determined by local authorities.
ACS chief executive James Lowman said, “A licensing scheme has the potential to help tackle the illicit market and punish those who sell to children, but unless properly structured it could also prevent legitimate traders from operating based on the presence of other outlets in the area, or the specifics of where that store is located. This requires detailed consultation with local shops and other stakeholders, and none of this has taken place. We now need proper discussion of the detail as regulations are drafted, or we fear that this legislation will significantly impact investment, growth and service provision in our sector.”
Other measures in the Bill include a ban on vape advertising and sponsorship, as well as powers to restrict the flavours, display and packaging of all types of vapes, as well as other nicotine products.
The Bill follows confirmation last month that the Government is planning to go ahead with a ban on disposable vaping products, which will come into force on June 1st 2025.
Lowman continued: “The Tobacco and Vapes Bill will require retailers to make significant changes in their businesses, both on age restricted sales processes and the way that their stores are stocked and managed. It is essential that the Government provides retailers with clear guidance on the rules, and communicates the changes not just with retailers, but with the public as well.
“The introduction of £200 fines to act as a deterrent for retailers selling products to underage customers is welcome, but we are concerned that there is not enough enforcement right now to deal with the rogue operators in the tobacco and vaping market. Trading Standards need significantly more funding to be able to make a difference through targeted local enforcement, not just against those selling to young people, but also those who sell illicit products.”
Sugro UK member and Brand Factory Ltd board director Tony Cox has been awarded The King’s Award for Enterprise – International Trade 2024, in recognition of his outstanding achievements in global trade.
The prestigious award was presented during an on-site ceremony held recently at their Aylesbury location, honouring all 84 staff members who have contributed to the company's success. The presentation was made by Countess Howe, His Majesty’s Lord Lieutenant of Buckinghamshire, and received by Tony Cox and Dilip Vithlani on behalf of the Brand Factory team.
Also in attendance were notable local and national figures, including Councillor Alan Sherell, Mayor of Aylesbury, Laura Kyrke-Smith, MP for Aylesbury, Councillor Mimi Harker, and Carl Wood, National Trade Director of NatWest Bank.
The King’s Award for Enterprise is a highly respected accolade, considered by a committee chaired by His Majesty, The King. The award recognises companies that demonstrate exceptional achievement in international trade, underpinned by a strong, value-led ethos and commitment to ensuring that all employees can contribute and succeed.
Companies that achieve the award must demonstrate sustained growth relative to their size and market sector. Brand Factory Ltd, a leading player in the FMCG market, was acknowledged for its role as a global market leader and trusted partner across numerous international markets. As a recipient of The King’s Award, Brand Factory Ltd now has the privilege of using The King’s emblem on its business documentation for the next five years, further enhancing its reputation within the industry.
Commenting on the award, Cox said, “We are extremely honoured with this fantastic achievement and incredibly thankful for recognising our excellence in International Trade. On receiving this prestigious award, we would like to extend our immense gratitude to all our invaluable customers, suppliers, and dedicated employees for their contribution.
"Together, we have reached the new heights! We look forward to continuing our partnership and reaching even greater milestones together in the future.”
Brand Factory Ltd, known for their tagline “All Brands in One Place”, started trading in Watford in 2018 before relocating to Aston Clinton, Aylesbury in 2019. Since then, they have grown to become a significant force in the global FMCG sector, continuing to lead the way in international trade.
Arrival of customary "pre-festive" deals boosted food sales though overall sales suffered in October as cash-strapped shoppers stayed at home, holding off purchases amid uncertainty over the budget and fears over rising energy bills.
According to data from the British Retail Consortium and the consultancy KPMG published today (5), sales increased by 0.6 per cent compared with October 2023, less than half the three-month average growth rate of 1.3 per cent.
Food sales increased 2.9 per cent year on year over the three months to October, against a growth of 7.9 per cent in October 2023. This is below the 12-month average growth of 4.1 per cent. For the month of Oct, food was in growth year-on-year.
Helen Dickinson OBE, Chief Executive of the British Retail Consortium, said that October’s "disappointing" sales growth was partly driven by half term falling a week later this yea.
"Uncertainty during the run-up to the Budget, coupled with rising energy bills, also spooked some consumers. Fashion sales took the biggest hit as the mild weather delayed winter purchases. Health and beauty sales remained buoyant, with beauty advent calendars flying off the shelves.
“After a painful Budget for retailers, the hope is it will be less painful for households in the immediate term and consumer appetite will pick up in time for the Black Friday sales and festive season. Retailers must now grapple with over £5bn of new costs announced by the Chancellor, including in Employer National Insurance, Business Rates and the uplift in the National Living Wage. Managing this will hold back investment and growth in the short term, while further squeezing already-low margins and risking inflation," she said.
Commenting on sales performance of food and drink sector performance, Sarah Bradbury, CEO at IGD, said,“In October, UK food and grocery sales saw a modest step up in growth compared to September, but this period does not include the last five days of the month, when an uptick of spending around Halloween might have been expected.
“However, the arrival of customary ‘pre-festive’ deals in categories such as wine helped boost sales in the second half of the month. Importantly - volume, as well as value growth, remained positive despite a downbeat mood in the wider economy reflecting nervousness around potential tax hikes in the government’s budget.
“Shopper Confidence continues to reflect very differing shopper experiences, with lower income households feeling much more negative than higher income households. Retailers will be hoping that measures announced in the budget, such as the uplift in the minimum wage, will give a much-needed confidence boost to lower income shoppers and that the nation is looking forward to the coming festive period with more optimism.”
Nisa Local Smithy Green, led by store owners Mitesh and his brother Hepesh Halai (affectionately known as Gaz), joined forces with Ince CE Primary School to host a fun-filled fundraising day for Talk First, a local charity supporting families and children.
Originally intended to take place outside the Nisa store, the overwhelming community interest prompted the school to generously offer their grounds, transforming the day into a larger celebration of community spirit.
The event was packed with excitement, featuring stalls, games, and a crowd-favourite Gaz getting soaked in the stocks! The collaborative efforts of the school, Talk First, Wigan Council, and the Wigan Mayor highlighted the true power of partnership within the local community.
The fundraising exceeded expectations, with more than £1,600 raised on the day. Ince CE Primary School contributed a generous £410, and Nisa Locally Smithy Green further boosted the total by matching the school's donation through their Making a Difference Locally (MADL) fund. This brought the overall amount raised to an impressive £2,421.
Reflecting on the event, Hepesh said: "A representative from Talk First called it ‘Community Partnership working at its very best!’ We couldn't agree more. This day showed what can be achieved when our community comes together for a great cause."
He extended heartfelt thanks to the school staff, volunteers, Talk First representatives, and the local dignitaries who made the day such a success. Through Making a Difference Locally, Nisa retailers support local causes by donating a percentage of sales from Heritage and Co-op products in-store, directly benefiting their communities.
Kate Carroll, Nisa’s Head of Charity, added, "This event exemplifies the incredible impact our retailers can make through MADL. We are so proud of Nisa Locally Smithy Green and the Ince community for their unwavering dedication to helping local causes like Talk First."
Forecourt operator EG Group on Friday said it has completed the sale of its remaining UK forecourt business and certain foodservice locations to co-founder Zuber Issa.
The group added that the transaction proceeds will be used to repay debt.
As previously announced, following completion of the transaction, Zuber has now stepped down from his executive leadership capacity at EG Group, becoming a non-executive director.
His brother and co-founder Mohsin Issa will lead the group as sole chief executive.
EG Group has in June announced the sale of the remaining UK business for £228 million to Zuber, who will focus on leading and growing a new UK petrol forecourt and convenience retail business, including food service, to be branded ‘EG on the Move’.
“Mohsin and I have realised and surpassed our own expectations and the group is a UK success story on a global stage,” Zuber said in September, as the deal received all relevant approvals.
“Our business represents the very best standards and customer experience of leading retail brands in fuel, foodservice, grocery and merchandise. I am very proud of what we have built together and look forward to being part of the Group’s continued success.”
Mohsin added: “This is a very exciting time for EG Group and the wider sector. I am delighted to return to lead EG Group where there are many opportunities. I would like to also pay tribute to Zuber’s effective leadership, incredible contribution, dedication and commitment to EG Group.
“We embarked on this exciting enterprise journey together knowing no boundaries, moving from one site in Bury to the world class global convenience business that it is today. I look forward to continuing to work with my brother and receiving his strategic counsel as a fellow shareholder and board member on the EG Group board.”
EG has an extensive global network spanning nine international markets across the UK, continental Europe, US and Australia with more than 5,500 sites and employing about 38,000 colleagues.
The Justice and Home Affairs Committee today (5) published a letter to the Minister for Policing, Crime and Fire Prevention, Dame Diana Johnson MP, highlighting how unacceptable levels of shop theft is causing serious harm to society.
After conducting an inquiry into retail crime, the committee finds that shop theft is an underreported crime that is not being effectively tackled, leading to a devastating impact on the retail sector and the wider economy. The Committee heard that there are almost 17 million incidents of shop theft annually, with few leading to an arrest and costing the retail sector almost £2 billion last year.
The nature of the offence has evolved from individualised offending to relentless, large-scale, organised operations accompanied by unprecedented levels of violence. Shop theft is now seen as a lucrative profit-making opportunity which is being exploited by organised criminal networks.
Pointing out that there is a widespread perception that shop theft is not treated seriously by the police, the Committee recognises the need for quicker reporting systems, better data collection and intelligence sharing between police forces across the UK.
The Committee welcomes the work of Pegasus, the new national scheme to tackle organised crime in the retail sector and recommends that existing schemes such as Business Crime Reduction Partnerships (linking police and local businesses) should all be part of a National Standards Accreditation Scheme.
Outlining the conclusion, the committee called for an urgent need to phase out the term shoplifting as it trivialises the crime. The Committee supports the plan to repeal the offence of “low-value shoplifting” and supports the creation of a standalone offence of assaulting a retail worker.
Improved reporting systems are required to enable retailers to report crime to the police quickly and easily, said the committee, recommending improving mechanisms for police and criminal justice systems to recognise and record when a crime has taken place in a retail setting.
The committee has also called on for "increased funding to community-based reoffending and rehabilitation initiatives" to help divert prolific drug and alcohol addicted offenders away from further offending.
Public awareness campaigns are needed to target the stolen goods market, stated the committee while expressing support for the introduction of regulations and best practice guidance for the use of facial recognition technology by private companies.
Welcoming the committee's findings and recommendation, ACS chief executive James Lowman said, “We strongly welcome the recommendations of the Committee which are sensible measures aimed at prioritising shop theft response both locally and nationally, as well as improving reporting rates. We know that millions of incidents of theft go unreported every year because retailers feel as though nothing will be done, which is a trend that we need to reverse or risk effectively decriminalising theft. Theft is a damaging crime, committed by organised groups that are stealing to order and take advantage of people struggling with the cost of living.
“We are looking forward to continuing working with the Home Office and Police and Crime Commissioners across the country to put in place the recommendations of the report and close the gap between reported crime and the reality of the situation in local shops.”
The Lords Committee has been considering the impact of shop theft on the retail sector since the end of the last parliament, hearing from different stakeholders involved in retail, academia and crime prevention on ways to improve reporting, reduce reoffending, and improve retailers’ confidence in the police.
ACS gave evidence to the Lords Committee in September of this year, sharing the experiences of members with reporting shop theft, the challenges of reporting crime, and the perceived lack of action from the police when thefts are reported to get repeat offenders off the streets.
In the Budget last week, the Chancellor announced that it was taking action to deal with the sharp rise in shop theft, providing additional funding to tackle the organised gang that target retailers.