The Association of Convenience Stores (ACS) has on Tuesday announced that its signing up as a supporter of UK Plastics Pact, affirming its commitment to making the convenience sector more sustainable.
The UK Plastics Pact, led by environmental charity WRAP, brings together businesses from across the entire plastics value chain with the UK government and NGOs to tackle the scourge of plastic waste.
The Pact has four main objectives: Eliminate problematic or unnecessary single-use packaging through redesign, innovation or alternative (reuse) delivery model; 100% of plastics packaging to be reusable, recyclable or compostable; 70% of plastics packaging effectively recycled or composted; and 30% average recycled content across all plastic packaging.
“We are committed to working with WRAP and other environmental groups on finding ways to make the products that our members sell more recyclable,” commented James Lowman, ACS chief executive.
“The convenience sector is currently facing huge challenges through a range of different policy interventions across the UK, including bans on some single use plastics, the introduction of differing deposit return schemes in different countries, and the expansion of the extended producer responsibility scheme – it is important that we introduce measures that will be maximally effective without imposing unnecessary costs and burdens on retailers.”
The announcement came as the trade body hosted its Heart of the Community conference on Tuesday, which discussed how the convenience sector can respond to the challenges it faces on levelling up and sustainability.
The conference featured a keynote speech from Katy Balls (Deputy Editor, Spectator) on the current political landscape, as well as a panel session with the finalists of the 2022 Raj Aggarwal Trophy – Dean Holborn and Bobby Singh. Other speakers included Ian Diment (AF Blakemore), Mike Crowhurst (Public First), Councillor Ankur Shiv Bhandari (Bracknell Forest Mayor), Shadow Minister for Environment, Food and Rural Affairs Daniel Zeichner MP and Jen Emerton (WRAP).
This year’s conference also featured the new Partner Hub where retailers can access advice, best practice and essential information about supporting colleagues, helping the local community and tackling crime. Partner Hub contributors include the National Business Crime Centre, GroceryAid, Community Alcohol Partnerships, the Safer Business Network, the Money and Pensions Service and Bucks and Surrey Trading Standards.
Lowman said: “Local shops play a crucial role in the levelling up agenda, providing essential products and services to communities that in some cases would otherwise be without a local grocery offering at all. These are businesses that are embedded in their communities, as job creators, investors, social hubs and much more. When the government considers the best way to level up local communities, thriving convenience stores should be central to their plans.”
Bestway Group is turning to a company voluntary arrangement (CVA) to exit about 35 vacant shops which previously traded as Bargain Booze and Wine Rack off-licences, stated recent reports.
According to Sky News, Bestway Group has informed landlords about plans for a company voluntary arrangement (CVA) for its Bestway Retail arm as it wanted to exit dozens of leases tied to shops which lie vacant within its retail estate.
Reports stated that about 35 shops which were not currently trading would be compromised in full under the plan. Roughly 10 further sites would seek rent reductions from landlords.
The CVA is being overseen by PricewaterhouseCoopers, stated Sky News citing a source.
Bestway's retail arm is said to comprise about 200 stores, largely operating under the Bargain Booze and Wine Rack brands.
Bestway also comprises operations in food wholesaling, the Well pharmacy chain, cement, real estate and United Bank, one of Pakistan's biggest lenders.
Meanwhile, Bestway Retail continues to strengthen its business. Most recently, it bolstered its senior leadership team with three new senior hires in the form of Nick Russell, Steve Moore and Rodney Tucker.
Russell, who previously worked for Costcutter until 2021, is now leading the independent Best-one and Costcutter estates. Moore, who also previously worked for Costcutter, will lead the Midlands and South Wales team from January 2025 as regional controller for Costcutter and Best-one.
Tucker has also rejoined the organisation in the new business and acquisitions team where he will drive the recruitment of new business in the Southwest and South Wales territories.
Sugro UK, member-owned buying and marketing group with over 90 members and a combined turnover of over £2.5 billion, has further enhanced its membership offering by giving wholesalers within the group an opportunity to source and save on essential equipment items for their business needs.
Under the new partnership, Sugro members will now have access to their own dedicated account manager at Partington Engineering Limited Ltd who will guide them through a range of solutions to save time and money on moving and storing goods.
Yulia Petitt, Sugro’s Head of Commercial and Marketing, said, “Our members, along with everyone else, are impacted by the rising costs. We are constantly striving to find new ways of supporting our members so I have no doubt that they will benefit from our latest partnership with Partington Engineering Ltd.”
Sue Hubber, Sugro Business Development Manager, added, “Partington Engineering are one of the premier manufacturers of materials handling equipment. They are a major supplier of trolleys across a variety of business sectors.
"Their extensive range of high quality equipment will enable Sugro members and their customers to replenish and add to their essential everyday equipment (trolleys, steps, and cages) from a competitive UK Source."
Darren Powles, Business Development Manager at Partington Engineering Ltd, added, "We are delighted to be working alongside Sugro and look forward to supplying high quality handling materials to its members.
:Manufactured here in the UK, our products are British built and made to last.
"Our Motto is 'Quality Merchandise Deserves Careful Handling' and every product we manufacture is done with this in mind."
Retail trade union Usdaw today (23) called on the shopping public to show respect for shop workers, stating that the busy pre-Christmas shopping period leaves retail workers exhausted and in need of a proper break.
Paddy Lillis – Usdaw General Secretary says, “By the time retail workers get to Christmas Eve, they will have been through a very busy run-up to Christmas. Our members tell us that incidents of verbal abuse are much worse in December and through to the New Year, when shops are busy, customers are stressed and things can boil over.
"That is why we asked customers to ‘keep your cool’ and respect shop workers, to make the Christmas shopping experience better for everyone.
“It is shocking that seven in ten of our members working in retail stores are suffering abuse from customers, with far too many experiencing threats and violence. Over half of shop workers have faced incidents triggered by customers being frustrated with stock shortages, lack of staff or problems with self-service checkouts.
"All of these issues are largely outside the control of the staff who are bearing the brunt of shoppers’ anger.
“Too many retail workers do not get a decent break over the Christmas and New Year period. They arrive home shattered and have to spend time on Christmas Day getting ready for work the next day, which is why 97 per cent want shops to shut on Boxing Day.
"98 per cent of our Scottish members want stores to close on New Year’s Day. While Usdaw has successfully secured the closure of large stores on Christmas Day, the rest of the holiday season is pretty much normal trading days for many.
“For those retailers who do open, we have negotiated national agreements for shops to be staffed with genuine volunteers only, and our workplace reps are supporting members to help make sure that happens at store level.
"We also send our appreciation to those workers behind the shopfront who have to work on Christmas Day and New Year’s Day, not least in distribution, food and pharmaceutical manufacturing.
“Our message to customers is have a great Christmas and a happy New Year. Please appreciate all those who have to work over the festive period. If you must shop on Boxing Day or New Year’s Day, please treat the staff with respect and understand they would most likely rather have the time off.”
Grocers must focus on their price positioning to remain competitive as food and grocery spending in UK convenience stores is projected to outpace the hypermarkets, supermarkets, and discounters channel.
According to GlobalData, food and grocery spending in convenience stores is projected to reach £43.2 billion by 2028, growing at a compound annual growth rate (CAGR) of 2.0 per cent between 2024 and 2028.
Between 2023 and 2024, the traditional big four grocers, Tesco, Sainsbury’s, ASDA, and Morrisons, collectively added 800 new convenience stores to their portfolios, with ASDA and Morrisons leading the growth with acquisitions. This rapid expansion underscores increasing competition in the convenience market.
After successfully focusing on price in large format stores to appeal to consumers during the cost-of-living crisis, grocers must shift their focus on agile pricing to convenience locations.
Sainsbury’s and Tesco are notable examples within convenience, with Sainsbury's recently introducing Aldi price matching in its Local stores and Tesco announcing price reductions on over 200 products in its Express stores.
Aliyah Siddika, Retail Analyst at GlobalData, comments, “This replication of price focus from larger format stores to grocers’ expanding their convenience offer will encourage consumers to impulse buy due to increased affordability.
"The shift in UK consumer behaviour towards frequent top-up shopping has also created substantial growth potential in the convenience market.”
Before the pandemic, 81.6 per cent of UK consumers stated they would visit a grocer on the way home from work, and 78.4 per cent reported the same now.
Budget limitations have primarily driven this change, followed by the rise of hybrid working. Pre-pandemic, consumers working in the office full-time had less time to cook dinner after work.
However, with the shift to hybrid work models, consumers now go into the office a few times a week and are more likely to have the time to prepare meals ahead of the days they are in the office to save money.
Convenience retailers should promote low prices on their fakeaway options to entice consumers to visit on their way home from work for an affordable yet indulgent meal.
Siddika concludes,“When offering deeper price cuts in convenience formats, grocers must target price promotions towards items that consumers are more inclined to purchase during the workweek. Such as food-to-go ranges, ready meals, quick dinners, and treats to capture spending from commuters."
The upcoming “grocery tax” could hit hard-pressed Britons in the pocket, adding up to £56 annually to household shopping bills and costing families as much as £1.4 billion a year, state reports on Sunday (22) citing a recent analysis.
The scheme, known as Extended Producer Responsibility (EPR), imposes a levy on retailers and manufacturers for the cost of collecting and disposing of packaging waste, currently funded via council tax.
The Department for Environment, Food and Rural Affairs (Defra) on Friday (20) published a series of “base fees” to indicate how much food manufacturers and retailers will be charged under the scheme when it starts next autumn.
The highest fee of £485 a tonne will be charged for plastic packaging followed by “fibre-based composite” at £455 a tonne. The levy for paper or board packaging is £215 a tonne while materials such as bamboo or hemp will be charged at £280 a tonne.
The government’s impact assessment estimates the policy will cost the industry £1.4 billion a year and will drive up prices by between £28 and £56 a year for the average household, adding 0.07 per cent to inflation as retailers pass on most of the costs to shoppers.
However, the British Retail Consortium believes the levy, officially known as the “extended producer responsibility”, will cost about £2 billion a year. If all of this were added to food bills it would drive up the average household cost by £70 a year.
The scheme is expected to come into effect shortly, coinciding with rise in employers’ national insurance contributions and the increase in the minimum wage.
The measure, intended to hit the Government’s net-zero targets, has drawn criticism for inflating food prices and creating new red tape for businesses. Critics warn the measure will increase food costs for families while creating additional bureaucracy for businesses.
In a letter sent to Chancellor Rachel Reeves last month, the bosses of Tesco, Sainsbury’s, Morrisons, Asda, Lidl and Aldi implored her to delay the levy.
The letter said: “For any retailer, large or small, it will not be possible to absorb such significant cost increases over such a short timescale.
"The effect will be to increase inflation, slow pay growth, cause shop closures, and reduce jobs, especially at the entry level. This will impact high streets and customers right across the country.
“We are already starting to take difficult decisions in our businesses and this will be true across the whole industry and our supply chain.”
The levy was originally conceived by Michael Gove during his time as environment secretary but, after a backlash from Tory MPs, it was put on hold.
Labour has revived the scheme since coming to power. Secondary legislation passed this month will bring the scheme into legal force on January 1, 2025, with charges due to be rolled out later that year.
Local authorities, which will receive the funds from the levy, are under no obligation to reduce council tax rates once relieved of the costs of waste collection.