Almost two-thirds of adults in England are overweight and one in three children is now leaving primary school obese. The government calls obesity one of Britain’s biggest long-term public health problems. One of its moves to tackle obesity is to restrict the promotion of foods and drinks high in fats, salt and sugar (HFSS) by October 2022.
Most retailers have supported and welcomed the government's move and believe that it's an opportunity to promote healthier and fresh products. But at present independent symbol stores are concerned about the massive lack of information by the government. They are asking the government to treat small stores fairly and give a clear picture of how it is going to police this.
In November 2020, Britain proposed a ban on online advertising of unhealthy foods as part of its efforts to tackle obesity and improve public health. In its plan, store promotions on such products cannot be advertised, and unhealthy promotions will not be allowed at checkouts, shop entrances, or at the ends of aisles from October 2022.
The government has exempted convenience stores which are either under 2,000 square feet in size or run by a business with fewer than 50 full-time equivalent employees. But franchise or symbol group stores deemed to be part of the larger brand-owner business – such as Spar, Nisa and Costcutter – are not exempted.
Earlier, the government had planned to enforce the restrictions on promotions of HFSS foods and drinks by April 2022 but later it extended to October 2022 to allow more time for retailers to make the necessary changes to store layouts.
Nonetheless, trade bodies representing convenience stores have expressed concern about the government’s intention to include smaller symbol group stores in the proposed restrictions.
“The proposal to include symbol groups within the requirements of the policy is both unfair and inconsistent with current government policy toward retailers,” commented Stuart Reddish, national president of the Federation of Independent Retailers (NFRN) in a press release.
“By including independent retailers who have decided that they can best serve their local communities as part of a symbol group, while excluding those who trade under their own name, the government is creating a false division between symbol and non-symbol retailers, to the disadvantage of those retailers who have chosen to join a symbol group.
“A ridiculous situation will occur where two stores in similar locations, with similar levels of staffing and of similar size and product ranges, are treated differently solely on the basis of the sign above the door.”
The Association of Convenience Stores (ACS) said in a statement that the measures will put an estimated £26 million cost burden on around 2,000 independent symbol group retailers. In its submission, ACS has urged the government to rethink the size exemptions and instead use the widely accepted 3,000 square foot definition of a convenience store.
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According to the Lumina Intelligence UK Convenience Market Report 2021, 19 per cent of convenience store purchases are picked up in areas that will face restrictions under new HFSS legislation. As over four in ten shoppers (44%) purchase on promotion, the categories like Bakery, Crisps & Snacks, Soft Drinks and Confectionery, which are the most commonly purchased on promotions, are set to be impacted by the regulation.
Location
% who pick up product from location
Display on the end of an aisle
7.9%
Display at the front of the store
5.8%
Display at the till
5.7%
Credit: Lumina Intelligence UK Convenience Market Report 2021
Amish Shingadia, Londis Caterways and Post Office said, "It is a positive move for our country's health. We will grow other categories such as fresh, protein, and sugar-free goods."
"It is a good idea but the government needs to go further and not lay all the responsibility of this at the feet of us retailers,” said Pete Patel of Costcutter Brockley. “I strongly believe the growth in fast food delivery services has a much bigger impact on this issue than high sugar products at till point in a retail store,"
In one of its consultations on child obesity, the government said, “Tackling obesity requires us to look at all factors that influence our food choices. Every day we are presented with constant encouragement and opportunity to eat the least healthy foods. We face numerous decisions about the food we and our children eat created by the advertisements our children see on TV and on-line; the range of foods sold in our local shops or delivered straight to our doors; and the food that is promoted in-store and on-line. All of this is intended to influence the choices we make about the food we buy our children.”
However, some retailers believe that banning the promotion will not help in tackling the obesity issue as this move is not addressing the actual source of the problem.
Sunita Aggarwal of Spar Wigston and Hackenthorpe, said, "The government needs to look at the source of the problem and it needs to start from suppliers/manufacturers. Pack quantity and price as well as promotions set by suppliers determine a large percentage of our sales. More promotions need to be set on healthier products for us to promote this out to the consumer."
Bobby Singh, Holmfield Lane Superstore and Post Office, personally believes in having healthier options, as it is better for the health of the nation going way forward. He thinks, "if the products are being produced, and then being allowed onto store's shelf, it contradicts both the matters to me. They make the product, they allow the product, and then you can't promote the product. I cannot see how it makes sense.
"There are lots of healthier options out there now than going back ten years – protein products, low-fat products, low sugar, etc. If the government has recognised something is not good for people then why is it being produced? Either it's at the front of your shop or the back of the shop, we are still selling. I can't understand this. It's a big contradiction."
On an average, for retailers, HSFF products contribute between seven to 25 per cent of their overall sales. The implementation of the restrictions might affect their business in the early days.
HFSS products contribute 10 per cent of overall sales in Patel's store. He said, "We will lose some impulse sales as whatever we replace at the front tills, product wise, it will not have the same impact as the current lines do,” he says. “Though this is a good opportunity for the healthier product, producers need to do more promotion activity so that can go on the gondola ends and at the checkouts."
Aggarwal said that 25 per cent of her sales are from HFSS products. Although "sales are hugely based on price and availability but the implementation of restriction on the promotion would "increased costs in a number of ways: refit and restructuring the layout of the store."
Asian Trader also tried to understand the scenario in Scotland. Anand Cheema, Spar Falkirk said, "In Scotland, legislation around health is devolved to Holyrood. The Scottish government has put its plans on restricting in-store promotions of HFSS foods on hold because of the pandemic. The postponed ‘Restricting Food Promotions Bill’ would also likely have placed restrictions on where products could be positioned within a store.
"Indeed, the advertising bill, applies to the whole of the UK! HFSS advertising restrictions on TV and online to meet the objective of reducing children’s exposure to HFSS advertising. You can now see how retailers are getting confused! It will be interesting to see how this is aired and regulated."
He added, "Having consulted my father [Dr Pete Cheema OBE, the CEO of Scottish Grocers Federation], he advises me that at present there is no firm timeframe for bringing in a draft Bill in Scotland. The Scottish Government is continuing to look at evidence relating to the impact of the pandemic on the use of promotional mechanics, customer behaviour etc."
"I would suggest that most retailers in Scotland are waiting inherently on the Scottish Government before taking any action instore," he said.
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Bharti Chavda of Westminster Grocery does not belong to a symbol group; she is an unaffiliated independent retailer. But it is interesting to know how the government's decision impacts small store's business and revenue.
"We have a primary school nearby and we already have noticed that the sugar products was reduced gradually over last 5 years when Jamie's sugar tax came in. Therefore, it already has impacted our business, I would say 10 to 15 per cent."
"Not sure how much more this new HFSS will affect us. We just have to keep trying other avenues for footfall we are no longer just a retailer, we now have to provide a service such as a parcel service, money transfers, Post office facilities etc."
The measures by the government aim to support people in achieving and maintaining a healthy weight and improve the nation’s overall health. The policy focuses on the products that are significant contributors to sugar and calorie intakes in children and that are heavily promoted. Only those products that are HFSS will be restricted, so there is scope for businesses to promote healthier products within these categories. It would be interesting to see how retailers plan their store’s layout so that they get similar benefits and profits as they get from HFSS products.
But the new regulations will be both a challenge and a huge risk for independent retailers.
Local shops will face significant new pressures as a result of today’s Budget, the Association of Convenience Stores (ACS) has warned.
Chancellor Rachel Reeves' budget's impact will be felt unevenly across the UK’s 50,000 convenience stores, with some measures such as business rate relief and the increased employment allowance mitigating costs for smaller independent stores, while providing no help for chains and larger independent businesses.
The key measures for local shops announced by the Chancellor, and the costs for local shops associated with them, are:
National Living Wage to increase to £12.21 per hour
National Minimum Wage (18-20 rate) to increase to £10 per hour
Cost to the convenience sector next year: £7.739bn (increase of £513m)
Employers’ National Insurance Contributions to rise to 15 per cent
Threshold for Employers’ National Insurance contributions to fall to £5,000 per year
Employment Allowance to rise to £10,500 a year
Cost to the convenience sector next year: £397m (increase of £85m)
Retail and hospitality rate relief reduced from 75 per cent to 40 per cent
Small business multiplier frozen for 2025/26
Cost to the convenience sector: £267m (increase of £68m)
Total cost of main announcements (year-on-year difference): £666m
ACS Chief Executive James Lowman said: “The cold hard facts are that the measures announced in the past 24 hours have added two-thirds of a billion pounds to the direct cost base of the UK’s local shops. At a time when trade is tough and operating costs are stubbornly high, this will be challenging for our members to absorb and there will be some casualties on high streets and in villages and estates across the country.
“Not all shops will be impacted the same. The smallest retailers, with low NICs bills and lower rateable values for their shops, will benefit from the welcome increase in the employment allowance and the retention of 40% of the retail, hospitality and leisure business rates relief. Retailers with a larger store, a number of sites or those operating a chain will receive limited benefit from these mitigations, and this will impact their ability to invest and to continue to offer services in the communities they serve.
The following additional measures were announced by the Chancellor in the Budget speech today:
Flat rate levy on vaping liquids from October 2026 of £2.20 per 10ml
Fuel duty frozen and the 5p cut extended for another year
A new commitment to tackling shop theft and funding directed to tackling organised gangs
Lowman continued: “The Chancellor’s commitment to tackling shop theft will be warmly welcomed by our members, but they are interested only in action and in crime against their stores and their colleagues being tackled effectively. We stand ready to help implement a new, and better-funded strategy to stop shop theft, abuse and violence against our members.”
Parliament is to launch an inquiry into delays in compensation settlements for sub postmasters affected by the Horizon scandal.
The newly-formed Business and Trade Select Committee will call ministers, subpostmasters and their lawyers to give evidence next week with a second session to follow in mid-November. The Committee’s chair, Liam Byrne MP told ITV News that there was “definitely a delay” in people coming forward for payment.
“What we’re hearing from subpostmasters is that if there is an argument about how much should be paid out, the first offer is made quite quickly but if there’s a negotiation, that negotiation is dragging.
“We on the committee are going to batter away at this, week in, week out, until it is job done. All of us on our committee are frankly horrified and outraged by how long this has taken and we’re just not going to give up, ” he said.
Sir Alan Bates, the Post Office campaigner and chair of the Justice for Subpostmasters Alliance, is expected to be invited to give evidence. Earlier this month, Sir Alan states that his own claim had not been addressed and that he had written to prime minister Sir Keir Starmer asking for his intervention.
“Like many of the groups, my claim has not been completed. It’s ridiculous. I am one of just many in this position. This is why I wrote to the Prime Minister at the start of October, asking that he instruct the department to ensure that all claims – and I’m talking about in the GLO group, the original 555 – have been completed by March next year," he said.
This comes weeks after the Post Office's outgoing CEO agreed the government is using the company as a "shield" over compensation schemes. Nick Read, who resigned last month, was giving evidence at the Post Office Horizon IT Inquiry for the second day, with a focus on delays to victims' financial redress.
He also admitted that the compensation process has been "overly bureaucratic" and expressed "deep regret" that the Post Office had not lived up to delivering "speedy and fair redress".
Convenience store body Association of Convenience Stores (ACS) today (30) has warned the Chancellor about the negative effects of the new National Living Wage (NLW) increase, a day after the Chancellor announced a pay rise for over 3 million workers next year, with NLW rates rising by 6.7 perc cent.
From April 2025, the NLW will increase from £11.44 to £12.21 while 18-20 National Minimum Wage will rise by £1.40 per hour to £10 - the largest increase on record, marking the first step towards a single adult rate.
ACS chief executive James Lowman said, “Our members are grappling with how to afford this inflation-busting increase in wage costs. The market remains tough, with many retailers reporting flat or declining sales while expenses like banking charges, credit card processing fees and energy bills are eating away at their profitability.
"More than ever, we need help from the Chancellor in the Budget. Without sustained and enhanced help on business rates, a reduction in National Insurance Contributions, and effective incentives to drive investment, our sector faces a challenging future. For some communities, this could mean the viability of their local shop is put at risk.”
Evidence provided to the Low Pay Commission by ACS earlier this year already found that to handle the increases in national wage increases, 53 per cent of retailers have reduced the amount they invest in their business, 53 per cent have been forced to increase their prices in store, and 47 per cent have had to take lower profits.
Baroness Philippa Stroud, Chair of the Low Pay Commission (LPC), stated that data already shows signs of employers finding it harder to adapt to minimum wage increases.
A Rossendale shop has had a licence bid rejected after repeatedly selling vapes to children and having illegal products on its premises.
Management at the Ibra Superstore at 34 Burnley Road, Bacup, have shown ‘no regard’ for children’s protection and safety, and have insufficient controls for licensing, Rossendale councillors have ruled.
Ibrahim Mohammad, director of the Ibra Superstore, had recently applied to Rossendale Council for a new premises licence. But the borough’s licensing sub-committee rejected his bid after a meeting which heard allegations from the police and trading standards officers.
The Burnley Road shop has been subject to various licensing changes and concerns in recent years. In the past, it was called Bacup Wines.
Ibrahim Mohammad, the applicant, attended the Rossendale licensing sub-committe meeting with his father,Amin Mohammad. Also there was PC Mick Jones, of Lancashire Constabulary, and Jason Middleton of Lancashire Trading Standards. Councillor Bob Bauld attended as an observer.
Mr Mohammad wanted a premises license for alcohol sales and opening hours from 8am to 11pm, seven days a week. He already had a personal licence. He said the Bacup shop would install a CCTV system, keep an incident log and a refusals record, check customers’ ages, display information about staff and give them regular training.
Trading standards officer Jason Middleton said Ibra Superstore Ltd was incorporated as a company in April 2023. Since then, trading standards had received 11 complaints about under-age sales and carried out visits.
Breaches included non-compliant vapes being found which broke a 2ml limit on the quantity of nicotine-containing liquid, no age checks and no information on display.
During one visit, Amin Mohammad tried to leave with a bag containing 10 illegal vapes. In test purchases by trading standards, an ‘Elf Bar’ vape was sold to a 14-year-old by Amin Mohammad and an illegal Hayati Pro Max vape to a 13-year-old by Ibrahim Mohammad. The shop claimed a phone call distracted staff during the 13-year-old’s purchase and illegal vapes came from ‘a man in car’.
Councillors heard different speakers, looked at written reports and also some video footage from the applicant. But they rejected the premises licence bid.
Giving their reasons, they stated: “There was a repeated history and pattern of behaviour regarding under-age sales of age-restricted items, such as tobacco products and vapes to children. You must not sell vapes to anyone under the age of 18. This is a criminal offence which the council takes very seriously.
“It is clear you breached the law by failing a test purchase operation in which you sold an illegal vape to an under-age child. The sub-committee feels that you have no regard to the protection and safety of children.
“The sub-committee feels that there is insufficient management control at the premises. There is no credible system to prevent under-age sales of age-restricted products and no measures in place to avoid harm to children and to prevent crime and disorder
“Therefore, given the number of incidents, the circumstances surrounding the incidents and the fact that the matter involves safeguarding issues relating to young, vulnerable minors, we consider that the seriousness of the incidents and the crimes committed against young children undermines the licensing objectives to prevent crime and disorder, and protect children from harm.”
The shop has the right of appeal to a magistrates court within 21 days of the date of the notice.
SPAR North of England retailer Dara Singh Randhawa’s family store has been awarded £100,000 of free stock after hitting all his targets since moving to the symbol.
Dara and his family, who have their SPAR store in Patrington in the East Riding of Yorkshire, joined SPAR through its association with James Hall & Co. Ltd in August 2023 having taken the decision to maximise the store’s potential.
It is a decision they have not looked back on, with sales increasing by up to 25% and margins also showing significant uplift in the last 12 months.
Key to the store’s improved performance is the complete overhaul of products available in-store, particularly the fresh food range, to better support people who live in Patrington and the surrounding area.
A new store layout and refrigeration, better Food To Go and meal deal options, a coffee machine, and a Calippo slush machine were also installed during a major refurbishment prior to launch.
Dara said: “Our move to SPAR has been excellent. We have seen fantastic sales uplift and the support from the team at James Hall & Co. Ltd has been brilliant. The £100,000 of free stock is the cherry on the cake.
“We have been very impressed with the Price Locked promotions, in particular. These give customers confidence to do bigger shops with us as they see value on our shelves and the products at the same prices for longer.
“At times over the summer when tourists and visitors to the area add trade, we have seen sales £6,000 a week higher than our average. This is against a backdrop of the popular caravan park in the village being closed almost all year.
“We are really pleased with the position we are in, and we will be looking to achieve more in 2025.”
Peter Dodding, Sales Director at James Hall & Co. Ltd and Chairman of the SPAR Northern Guild, said: “Congratulations to Dara and the Randhawa family on hitting their targets and earning £100,000 of free stock.
“We recognise switching brand is a big decision for a retailer which is why this isn’t a gimmick, and we offer this to all retailers who join the SPAR family with James Hall & Co. Ltd.
“As well as our £100,000 incentive, we also offer retailers the chance to achieve up to an additional £5,000 of free stock if they successfully refer a friend.
“These opportunities provide additional motivation to retailers alongside the comprehensive benefits that joining the SPAR brand brings with it.”
James Hall & Co. Ltd is a fifth-generation family business which serves a network of independent SPAR retailers and company-owned SPAR stores across Northern England six days a week from its base at Bowland View in Preston.