Skip to content
Search
AI Powered
Latest Stories

HFSS scheme does not impact profitability, says Southern Co-op

HFSS scheme does not impact profitability, says Southern Co-op
Photo by Christopher Furlong/Getty Images
Getty Images

Southern Co-op has revealed that its in-store trial, which put the upcoming regulations on products high in fat, salt or sugar (HFSS) to the test, saw no change to its overall profitability.

The trial, which began in March and took place over a 16-week period in Romsey, saw five stores with three different format types adapted to become fully compliant with the new scheme.


The goal of the trial reportedly was to develop an understanding of the impact of HFSS regulations on customer behaviour, the costs associated with new formats and the overall impact upon profitability.

Removal of HFSS products from impulse locations such as dump bins near tills and queuing areas was expected to have the largest impact, However, no such effect was observed.

Although profitability was not affected, Southern Co-op admitted that the additional costs involved in adapting stores to make them fully compliant would be the second-largest capital expense to the business in 2022.

Southern Co-op's news comes amid speculation that the new prime minister Liz Truss is contemplating to scrap HFSS restrictions under anti-obesity drive. The new restrictions are set to roll out in October which will see HFSS products banned from stores’ locations such as aisle ends, store entrances and checkout areas.

Apart from HFSS restricitons, Truss is also planning to do away with sugar tax. According to The Times, Truss is preparing to scrap sugar taxes on soft drinks and ditch some anti-obesity measures to ease the cost-of-living crisis in the country.

In an August interview with the Daily Mail, Truss said she would scrap plans to restrict multi-buy deals on food and drink high in fat, salt, or sugar and would not impose any new levies on unhealthy food.

“(People) don’t want the government telling them what to eat,” Truss said.

More for you

Sainsbury’s local convenience store outlets
Image from Sainsbury's media
Image from Sainsbury's media

Sainsbury’s extends Aldi price-match campaign to 800 convenience stores

Supermarket Sainsbury’s has become the first grocer to extend its Aldi price-match campaign to its 800 local convenience store outlets.

In a bold move by its boss to win back market share from the German discounter, Britain’s second-largest supermarket chain today (4) has added price matches on 200 daily staples — including milk, chicken, bread and vegetable oil — in its local convenience stores.

Keep ReadingShow less
Glasgow retailer retires after serving community for 44 years

iStock image

iStock image

Glasgow retailer retires after serving community for 44 years

A convenience store owner in Glasgow has retired and handed over the keys after serving the community for 44 years.

The retiring shopkeeper couple, Abdul Haq and his wife Hameedah, have run Disqu Blu convenience store in Glasgow since 1980.

Keep ReadingShow less
innocent drinks, Co-op team up to donate portions of fruit and veg to charity

innocent drinks, Co-op team up to donate portions of fruit and veg to charity

innocent drinks, Europe’s leading healthy drinks company, is announcing a new partnership with Alexandra Rose Charity as it advances its mission to help people live well through the delicious goodness of fruits and vegetables.

Government statistics reveal that just one third of adults, and 12 per cent of 11–18-year-olds, are managing to get the recommended “Five a Day”. This is even starker for lower-income families, with the most deprived fifth of adults consuming 37 per cent less fruit and veg than the least deprived, and their children 29 per cent.

Keep ReadingShow less
‘Spooktacular’ store POS drives sales, customer engagement for Nisa retailer NP Group

‘Spooktacular’ store POS drives sales, customer engagement for Nisa retailer NP Group

As the final key retail season of the year approaches, Nisa retailer NP Group is gearing up for Christmas with a renewed focus on store activation and point-of-sale (POS) strategy to drive sales following a successful Halloween.

With seasonal shopping trends in full swing, effective in-store activation and visibility are crucial for smaller retailers to capture customer attention and keep up with larger competitors. Data from Retail Economics shows that UK shoppers spent approximately £10 billion on seasonal products in 2023, with Halloween contributing £650 million alone, marking a steady increase in seasonal shopping over recent years.

Keep ReadingShow less