Prime minister Rishi Sunak’s policy to introduce a phased generational smoking ban (if it comes into effect) will have profound consequences and long-term deep impact on retailers who will be piled with confusing legal hassles, Asian Trader has learnt. While the responsibility of the ban’s implementation will seemingly fall on retailers, the tobacco market on the other hand is also feared to further fall into the hands of organised criminal gangs.
Under the Tobacco and Vapes Bill introduced on March 20, children turning 15 this year or younger will never legally be sold tobacco. The government states that this policy will ensure that future generations are protected from the harmful impacts of smoking and thus saving thousands of lives as well as billions of NHS’ pounds.
Superficially, the bill sounds like a simple plan, but it has confusing layers. It is feared that it will prove to be a challenge to implement by convenience stores, otherwise whose major share of footfall and sales come from this product line.
Under this plan, anyone born on or after Jan 1 2009 will never legally be able to buy tobacco. This means that after Jan 1 2027, the minimum legal age of buying buy tobacco will change to 19-years’ old (on or after 1 January 2028); 20-years’ old (on or after 1 January 2029); 21-years’ old (on or after 1 January 2030) and so on, with the minimum age increasing with every passing year until it applies to the whole population.
Sound confusing? If not, then picture a time few years down the line when a retailer and his staff will be held responsible if he is not able to prohibit sales to 36-year-olds while granting the same to 37-year-olds.
Tobacco Manufacturers' Association (TMA) has labeled generational smoking ban as “unworkable, illiberal and unenforceable”.
In response to the publication of the Tobacco & Vapes Bill, Rupert Lewis, Director of the TMA, said, “Sunak’s policy to introduce a phased generational smoking ban will have profound consequences for consumers, retailers and local communities across the UK”.
Leading tobacco company JTI UK has also expressed extreme disappointment over the Tobacco and Vapes Bill.
Sarah Connor, Communications Director at JTI UK, told Asian Trader, “We are disappointed by the proposals made in the Tobacco and Vapes Bill. A generational ban takes away the right of adult consumers to make their own choices solely based on their year of birth and sets a worrying precedent for this type of discriminatory approach to other products.
Sarah Connor, Communications Director at JTI
“JTI is committed to the concept of informed choice across the spectrum of conventional tobacco products and alternative nicotine products such as vaping products, heated tobacco products and nicotine pouches. Providing adult consumers with a choice of products, including those that have the potential to reduce the risks associated with smoking, is surely a more rational approach than an unproven concept of a generational ban.”
Connor further added that similar proposals were considered but discontinued in Singapore, which has chosen to await more evidence, and Malaysia, which has concluded that it would be unconstitutional.
In New Zealand, which passed a similar law earlier in 2023, the new Government will now repeal the policy before its implementation.
The bill also talks about introducing new powers to restrict vape flavours and packaging as well as their placement in the stores. Additionally and separately, the government is committed to outrightly ban the sale and supply of disposable vapes from April 2025. But that’s a discussion for another day.
Impact on Retailers
Under the bill, enforcement officers’ powers will also be strengthened with ‘on the spot fines’ of £100 to uphold the new laws. This builds on a maximum £2,500 fine that local authorities can already impose.
Clearly, the onus of making the UK “smokefree” seems to be falling entirely and solely on the shoulders of retailers.
Every year, the ‘proof of age’ requirements will change and the only way for retailers to ensure that they are not breaking the law will be to check and scrutinise the photographic ID card with every purchase, keeping in mind the year factor.
A situation like this presents a perfect ground for conflict for retailers who are otherwise already reeling under record crime rates and abuse levels, as reflected by wider industry reports.
The British Retail Consortium’s most recent annual Crime Survey, published in February 2024, found that UK retailers now suffer more than 1,300 incidents of violence and verbal abuse every day – compared to 870 incidents recorded last year and a huge 180 per cent increase from 450 incidents a day in 2019-20.
The Scottish Grocers’ Federation reported that “over half of reported daily incidents of abuse against staff were connected to refusing a sale or when asking for proof of age”.
The 2024 Crime Report by Association of Convenience Stores (ACS), released in early March revealed that an overwhelming majority (87 per cent) of people working in convenience stores have faced verbal abuse over the last year. The same report ranked "enforcing the law on age restricted sales” as top triggers for abuse. Sadly, the reality is that overstretched police force is somewhere seems to be failing to combat retail crime.
A generational smoking ban will further require retailers to decline sales to fully-grown adults (who can otherwise buy alcohol!) who cannot present satisfactory photographic ID.
iStock image
Slamming the bill, Lewis from TMA sais, “Fast forward a few years and a phased generational smoking ban will see retailers having to differentiate between 28-year-olds and 29-year-olds when selling tobacco. This is not common sense!
“The introduction of a phased generational ban will lead to an escalation in more threatening anti-social behaviour towards retailers, as the weight of responsibility for enforcement will fall entirely on the shoulders of shopkeepers and their staff.
“The New Zealand government has seen sense and repealed a ‘generational ban’ before it was implemented, and the UK government would be wise to adopt a similar approach, because the repercussions of introducing a ‘tobacco prohibition law’ will be long-lasting and felt by communities across the UK for years to come,” he told Asian Trader.
Elaborating on the impact, Connor from JTI called the proposed generational ban “a deeply impractical law for retailers”.
“This will mean that by 2037, 28-year-oldswon’t be able to buy tobacco products, but 29-year-olds will. Retailers will be expected to distinguish this difference in age when deciding whom to sell tobacco products to,” she told Asian Trader.
Referring to asking ID for age verification as leading common triggers for abuse, Connor added, “Having spoken to retailers, we know that many are worried that the proposed ban would lead to an increase in threatening or violent behaviour towards them.”
A JTI survey found that 55 per cent of retailers are worried that the proposed changes will make ID checks more complicated for their staff, with 58 per cent stating it will impact staff training specifically around underage sales.
Illegal Trade
A major yet obvious repercussion clear in sight here is the rise in illegal trade and underground market.
JTI’s survey also supports this view.
Connor told Asian Trader, “Over two-thirds (67 per cent) of the retailers told us that the generational tobacco ban would likely lead to an increase in illicit tobacco activity, and there is concern within the industry that illegal products will become more prevalent, damaging sales for the majority of hard-working retailers."
TMA also points out that prohibition of legal products always has dangerous side effects and opens the door to criminal gangs to sell illegal products, as was seen in South Africa in 2020, following a temporary ban on tobacco products during the COVID lockdown.
Criminals were ready to fill the gap, and 93 per cent of smokers in South Africa bought tobacco from criminals through the lockdown.
Lewis from TMA stated, “As a policy, it is unworkable, illiberal and unenforceable, and risks pushing an even larger share of the UK’s tobacco market underground – with every passing year – into the hands of the organised crime gangs that spread violence and disorder up and down our country.”
Noteworthy here is that illegal trade of cigarettes and tobacco products is not new in the country. The trade, its logistics and supply chain exist and is flourishing already, as reflected by regular media and councils’ reports. Such a ban will only further boost underground trade.
Smuggled tobacco already costs law-abiding retailers thousands of pounds as smokers switch to cheaper, un-taxed and un-regulated illegal products, pointed out TMA. A generational ban will hand more and more of the UK tobacco market to criminals every year.
To smoke or not to smoke
This proposed generational smoking ban is now a burning political issue and seems to be dividing Tories.
Greg Smith, a Tory backbencher, said the extra powers for councils to issue fines risk irking core small businesses.
“I would anticipate there will be a significant bite-back. There could be upwards of 80 MPs on the Conservative benches opposing this.”
If a Tory rebellion grows, the bill may rely on support from Labour to pass. Labour, on the other hand, is calling Sunak’s generational ban “a gimmick”.
“No thought appears to have been given to the pressure this places on retailers, who will be asked to determine not whether someone is an adult, but whether they were born after 2009, a moving target as time goes on,” states Labour.
Democratic Unionist Party MP Ian Paisley Jr, also the Vice Chair of the All-Party Parliamentary Group for Retail Crime, Safe and Sustainable High Streets, feels that generational ban will put shopkeepers at risk.
Tobacco makers, meanwhile, are calling on retailers to raise their voice while there is still time.
Lewis said, “As the bill is debated in Parliament, there is still time for retailers to take action and ensure their voices are heard. The best way to do this is for retailers to contact their local MP to express any concerns they may have around the bill. Whilst this isn’t impacting them directly today, the proposed ban will have serious repercussions in the years to come, so it is incredibly important retailers have their say now and speak to their local MP.”
Retailers can easily find their MP using the ‘Find Your MP’ site and can share an email or letter expressing their opinions directly.
There are plenty of laws today that can be used to restrict access to tobacco and other nicotine products by youth. All seem to be characterised by lack of enforcement. It will surely not help to pile the legislation with this recent phased generational ban on tobacco, a confusing policy that is expected to impact retailers badly.
The UK retail sector is bracing for a challenging but opportunity-filled 2025, according to Jacqui Baker, head of retail at RSM UK. While the industry grapples with rising costs and heightened crime, advancements in artificial intelligence and a revival of the high street offer potential pathways to growth, she said.
The latest Budget delivered a tough blow to the retail sector, exacerbating existing financial pressures. Retailers, who already shoulder a significant portion of business rates and rely heavily on a large workforce, face increased costs from rising employers’ National Insurance Contributions.
“Higher costs will also eat into available funds for future pay rises, benefits or pension contributions – hitting retailers’ cashflow in the short term and employees’ remuneration in the longer term,” Baker said.
“Retailers must get creative to manage their margins and attract footfall and spend, plus think outside the box to incentivise employees if they’re to hold onto talented staff.”
On the brighter side, falling inflation and lower interest rates could ease operational costs and restore consumer confidence, potentially driving retail spending upward.
High street resurgence
Consumers’ shopping habits are evolving, with a hybrid approach blending online and in-store purchases. According to RSM UK’s Consumer Outlook, 46 per cent of consumers prefer in-store shopping for weekly purchases, compared to 29 per cent for online, but the preference shifts to 47 per cent for online shopping for monthly buys and to 29 per cent for in-store. The most important in-store aspect for consumers was ease of finding products (59%), versus convenience (37%) for online.
“Tactile shopping experiences remain an integral part of the purchase journey for shoppers, so retailers need to prioritise convenience and the opportunity for discovery to bring consumers back to the high street,” Baker noted.
The government’s initiative to auction empty shops is expected to make brick-and-mortar stores more accessible to smaller, independent retailers, further boosting high street revival, she added.
A security guard stands in the doorway of a store in the Oxford Street retail area on December 13, 2024 in London, EnglandPhoto by Leon Neal/Getty Images
Meanwhile, retail crime, exacerbated by cost-of-living pressures, remains a significant concern, with shoplifting incidents reaching record highs. From organised social media-driven thefts to fraudulent delivery claims, the methods are becoming increasingly sophisticated.
“Crime has a knock-on effect on both margins and staff morale, so while the government is cracking down on retail crime, retailers also have a part to play by investing in data to prevent and detect theft,” Baker said.
“Data is extremely powerful in minimising losses and improving the overall operational efficiency of the business.”
AI as a game-changer
Artificial intelligence is emerging as a transformative force for the retail sector. From personalised product recommendations and inventory optimisation to immersive augmented reality experiences, AI is reshaping the shopping landscape.
“AI will undoubtedly become even more sophisticated over time, creating immersive and interactive experiences that bridge the gap between online and in-store. Emerging trends include hyper-personalisation throughout the entire shopping journey, autonomous stores and checkouts, and enhanced augmented reality experiences to “try” products before buying,” she said, adding that AI will be a “transformative investment” that determines the long-term viability of retail businesses.
The Amazon Fresh store in Ealing, LondonPhoto: Amazon
As financial pressures ease, sustainability is climbing up the consumer agenda. RSM’s Consumer Outlook found 46 per cent would pay more for products that are sustainably sourced, up from 28 per cent last year; while 44 per cent would pay more for products with environmentally friendly packaging, compared to 36 per cent last year.
“However, ESG concerns vary depending on age and income, holding greater importance among high earners and millennials. With financial pressures expected to continue easing next year, we anticipate a renewal of sustainability and environmentally conscious spending habits,” Baker noted.
“Retailers ought to tap into this by understanding the preferences of different demographics and most importantly, their target market.”
Southend-on-Sea City Council officials have secured food condemnation orders from Chelmsford Magistrates Court, resulting in the seizure and destruction of 1,100 unauthorised soft drinks.
The condemned drinks, including Mountain Dew, 7-UP, Mirinda, and G Fuel energy drinks, were found during routine inspections of food businesses across Southend by the council’s environmental health officers.
Council said these products contained either banned additives like Calcium Disodium EDTA or unauthorised novel ingredients such as Potassium Beta-hydroxybutyrate.
Calcium Disodium EDTA has been linked to potential reproductive and developmental effects and may contribute to colon cancer, according to some studies. Potassium Beta-hydroxybutyrate has not undergone safety assessments, making its inclusion in food products unlawful.
Independent analysis certified that the drinks failed to meet UK food safety standards. Magistrates ordered their destruction and ruled that the council's costs, expected to total close to £2,000, be recovered from the businesses involved.
“These products, clearly marketed towards children, contain banned or unauthorised ingredients. Southend-on-Sea City Council will always take action to protect the public, using enforcement powers to ensure unsafe products are removed from sale,” Cllr Kevin Robinson, cabinet member for regeneration, major projects, and regulatory services, said.
“As Christmas approaches, we hope this sends a strong message to businesses importing or selling such products: they risk significant costs and possible prosecution.”
The council urged residents to check labels when purchasing imported sweets and drinks, ensuring they include English-language details and a UK importer's address.
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A customer browses clothes inside Charity Super.Mkt at Brent Cross Shopping centre in north London on, December 17, 2024
Bursting with customers one afternoon the week before Christmas, a second-hand charity shop in London's Marylebone High Street looked even busier than the upscale retailers surrounding it.
One man grabbed two puzzle sets and a giant plush toy as a present for friends, another picked out a notebook for his wife.
“Since the end of September, we've seen a huge uplift in people coming to our shops and shopping pre-loved,” said Ollie Mead, who oversees the shop displays - currently glittering with Christmas decorations - for Oxfam charity stores around London.
At the chain of second-hand stores run by the British charity, shoppers can find used, or "pre-loved", toys, books, bric-a-brac and clothes for a fraction of the price of new items.
Popular for personal shopping, charity stores and online second-hand retailers are seeing an unlikely surge in interest for Christmas gifts, a time of year often criticised for promoting consumerism and generating waste.
A report last month by second-hand retail platform Vinted and consultants RetailEconomics found UK customers were set to spend £2 billion on second-hand Christmas gifts this year, around 10 per cent of the £20 billion Christmas gift market.
A woman browses some of the Christmas gift ideas in a store on December 13, 2024 in London, England. Photo by Leon Neal/Getty Images
In an Oxfam survey last year, 33 per cent were going to buy second-hand gifts for Christmas, up from 25 percent in 2021.
“This shift is evident on Vinted,” Adam Jay, Vinted's marketplace CEO, told AFP.
“We've observed an increase in UK members searching for 'gift' between October and December compared to the same period last year.”
According to Mead, who has gifted second-hand items for the last three Christmas seasons, sustainability concerns and cost-of-living pressures are “huge factors”.
Skimming the racks at the central London store, doctor Ed Burdett found a keychain and notebook for his wife.
“We're saving up at the moment, and she likes to give things another life. So it'll be the perfect thing for her,” Burdett, 50, told AFP.
“It's nice to spend less, and to know that it goes to a good place rather than to a high street shop.”
'Quirky, weird
Wayne Hemingway, designer and co-founder of Charity Super.Mkt, a brand which aims to put charity shops in empty shopping centres and high street spaces, has himself given second-hand Christmas gifts for “many, many years”.
“When I first started doing it, it was classed as quirky and weird,” he said, adding it was now going more “mainstream”.
Similarly, when he first started selling second-hand clothes over 40 years ago, “at Christmas your sales always nosedive(d) because everybody wanted new”.
Now, however, “we are seeing an increase at Christmas sales just like a new shop would”, Hemingway told AFP.
“Last weekend sales were crazy, the shop was mobbed,” he said, adding all his stores had seen a 20-percent higher than expected rise in sales in the weeks before Christmas.
“Things are changing for the better... It's gone from second-hand not being what you do at Christmas, to part of what you do.”
Young people are driving the trend by making more conscious fashion choices, and with a commitment to a “circular economy” and to “the idea of giving back (in) a society that is being more generous and fair,” he said.
At the store till, 56-year-old Jennifer Odibo was unconvinced.
Buying herself a striking orange jacket, she said she “loves vintage”.
But for most people, she confessed she would not get a used gift. “Christmas is special, it needs to be something they would cherish, something new,” said Odibo.
“For Christmas, I'll go and buy something nice, either at Selfridges or Fenwick,” she added, listing two iconic British department stores.
Hemingway conceded some shoppers “feel that people expect something new” at Christmas.
“We're on a journey. The world is on a journey, but it's got a long way to go,” he added.
According to Tetyana Solovey, a sociology researcher at the University of Manchester, “for some people, it could be a bit weird to celebrate it (Christmas) with reusing.”
“But it could be a shift in consciousness if we might be able to celebrate the new year by giving a second life to something,” Solovey told AFP.
“That could be a very sustainable approach to Christmas, which I think is quite wonderful.”
Lancashire Mind’s 11th Mental Elf fun run was its biggest and best yet – a sell-out event with more than 400 people running and walking in aid of the mental charity, plus dozens more volunteering to make the day a huge success.
The winter sun shone on Worden Park in Leyland as families gathered for either a 5K course, a 2K run, or a Challenge Yours’Elf distance which saw many people running 10K with the usual running gear replaced with jazzy elf leggings, tinsel and Christmas hats.
And now the pennies have been counted, Lancashire Mind has announced that the event raised a fantastic £17,000.
This amount of money allows Lancashire Mind to deliver, for example, its 10-week Bounce Forward resilience programme in eight schools, reaching more than 240 children with skills and strategies that they can carry with them throughout their lives, making them more likely to ‘bounce forward’ through tough times.
The event was headline sponsored by SPAR for a third year through its association with James Hall & Co. Ltd, SPAR UK’s primary retailer, wholesaler, and distributor for the North of England.
“On behalf of the entire team at Lancashire Mind, we want to extend a heartfelt thank you to the 400+ incredible participants who joined us for Mental Elf 2024!” said Organiser Nicola Tomkins, Community and Events Fundraiser at Lancashire Mind.
“Your support, energy and commitment to raising awareness for mental health makes all the difference. Together, we've taken another important step towards breaking the stigma around mental health and promoting wellbeing for all in our community. We couldn't have done it without you!”
Worden Hall became the hub of the event where people could enjoy music from the Worldwise Samba Drummers and BBC stars Jasmine and Gabriella T, plus lots of family friendly activities and a chance to meet Father Christmas. Pets also got in on the act in the best dressed dog competition.
Lancashire Mind CEO David Dunwell said: “It was heart-warming day, full of community spirit and festive cheer, but with a serious aim to raise funds for mental health.
“We are so grateful to everyone who bought a ticket and fundraised or donated to help us smash our target. The money raised goes directly to supporting Lancashire Mind’s life-changing mental health services. These funds help provide wellbeing coaching, support groups, and educational programmes to individuals and families in need of mental health support in our community.”
The concept of Mental Elf was created by Lancashire Mind and news of the event has spread right across the country in recent years, with around 40 other local Mind charities hosting a similar event in 2024.
Lancashire schools were also encouraged to host their own Mental Elf-themed event this year, whether that was a run, bake sale or dress up day, and raised more than £1,000 in total.
Philippa Harrington, Marketing Manager at James Hall & Co. Ltd, said: “There was a lovely festive feel in the air at Mental Elf and we were delighted to see even more individuals, families, and canine companions taking part in its new home of Worden Park.
“We are also very pleased to see the uptake that Mental Elf has had in schools, and congratulations go to the Lancashire Mind team for taking it to new participants and for raising a fantastic amount of money for an important cause.”
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A woman walks past a window display promoting an ongoing sale, on December 13, 2024 in London, England.
UK retail sales rose less than expected in the runup to Christmas, according to official data Friday that deals a fresh blow to government hopes of growing the economy.
Separate figures revealed a temporary reprieve for prime minister Keir Starmer, however, as public borrowing fell sharply in November.
The updates follow news this week of higher inflation in Britain - an outcome that caused the Bank of England on Thursday to leave interest rates unchanged.
Retail sales by volume grew 0.2 per cent in November after a drop of 0.7 per cent in October, the Office for National Statistics said Friday.
That was less than analysts' consensus for a 0.5-percent gain.
"It is critical delayed spending materialises this Christmas to mitigate the poor start to retail's all-important festive season," noted Nicholas Found, senior consultant at Retail Economics.
"However, cautiousness lingers, slowing momentum in the economy. Households continue to adjust to higher prices (and) elevated interest rates."
He added that consumers were focused on buying "carefully timed promotions and essentials, while deferring bigger purchases".
The ONS reported that supermarkets benefited from higher food sales.
"Clothing stores sales dipped sharply once again, as retailers reported tough trading conditions," said Hannah Finselbach, senior statistician at the ONS.
Retail sales rose 0.2% in November 2024, following a fall of 0.7% in October 2024.
Growth in supermarkets and other non-food stores was partly offset by a fall in clothing retailers.
The Labour government's net borrowing meanwhile dropped to £11.2 billion last month, the lowest November figure in three years on higher tax receipts and lower debt-interest, the ONS added.
The figure had been £18.2 billion in October.
"Borrowing remains subject to upside risks... due to sticky interest rates, driven by markets repricing for fewer cuts in 2025," forecast Elliott Jordan-Doak, senior UK economist at Pantheon Macroeconomics.
Jacqui Baker, head of retail at RSM UK and chair of ICAEW’s Retail Group, commented that the later than usual Black Friday weekend meant November’s retail sales figures saw only a slight uptick as cost-conscious consumers held off to bag a bargain.
“Despite many retailers launching Black Friday offers early, November trade got off to a slow start which dragged on for most of the month. This was driven by clothing which fell to its lowest level since January 2022. The only saving grace was half-term and Halloween spending helped to slightly offset disappointing sales throughout November,” Baker said.
“As consumer confidence continues to build and shoppers return to the high street, this should translate into more retail spending next year. However, there are big challenges coming down the track for the sector, so retailers will be banking on a consumer-led recovery to come to fruition so they can combat a surge in costs.”
Thomas Pugh, economist at RSM UK, added: “The tick up in retail sales volumes in November suggests that the stagnation which has gripped the UK economy since the summer continued into the final months of the year.
“While the recent strong pay growth numbers may make the Bank of England uncomfortable, it means that real incomes are growing at just under 3 per cent, which suggests consumer spending should gradually rise next year. However, consumers remain extremely cautious. The very sharp drop in clothing sales in particular could suggest that consumers are cutting back on non-essential purchases.
“We still expect a rise in consumer spending next year, due to strong wage growth and a gradual decline in the saving rate, to help drive an acceleration in GDP growth. But the risks are clearly building that cautious consumers choose to save rather than spend increases in income, raising the risk of weaker growth continuing through the first half of next year.”