More customers are turning to smoke-free products as part of New Year’s resolutions, a new retailer survey has found.
Majority of retailers (59%) told an independent survey by KAM Media for Philip Morris that, in the last few years, they are seeing more customers looking for less harmful alternatives such as e-cigarettes and heated tobacco products to move away from cigarettes, than before.
Over a third (38%) of the retailers expected a further increase in their customers seeking better alternatives to cigarettes in 2021, versus half that number (18%) who were expecting those numbers to fall.
“Without question quitting tobacco and nicotine usage completely is the best option any smoker can make. Of those that cannot or will not quit, the New Year offers adult smokers an opportunity to make a better choice,” commented Kate O’Dowd, head of commercial planning UK & Ireland at Philip Morris.
“With over a third of retailers expecting demand for smoke-free products to increase in 2021, stocking a range of alternatives, like IQOS – the UK’s number one smoke-free product – will be key in helping adult smokers move away from cigarettes for good.”
Over half (52%) of all retailers now stock heated tobacco products, and IQOS and HEETS heated tobacco sticks are the most recalled smoke-free brand, according to Nielsen data, the firm added.
The survey has also revealed that most retailers are all set to take advantage of the growth opportunities in the emerging sector, with 70 per cent of retailers saying they are ‘very prepared’ for a New Year spike in demand and 8 in 10 keeping up-to-date with the latest developments on smoke-free products available on the market.
Around half (45%) believe they play a role in helping customers move away from cigarettes as part of any New Year’s resolution and some 60 per cent think that staff knowledge or training on the smoke-free alternatives available is very important.
Retailers rank ease of purchase, high nicotine strength and a cigarette-like experience as important to customers looking to switch to a smoke-free alternative.
Rise in the prices of breakfast items combined with climbing global coffee cost pushed the food inflation in February to 2.1 per cent against 1.6 per cent in January, shows recent data as prices are expected to rise higher in the coming months, touching up to 4 per cent.
According to shop price inflation data released by British Retail Consortium (BRC) today (4), shop price inflation was unchanged at -0.7 per cent year on year in February, against a decline of -0.7 per cent in January.
Non-Food inflation decreased to -2.1% year on year in February, against a decline of -1.8 per cent in January. This is above the 3-month average of -2.1 per cent.
Food inflation increased to 2.1 per cent year on year in February, against growth of 1.6 per cent in January. This is above the 3-month average of 1.8 per cent. Fresh Food inflation increased to 1.5 per cent year on year in February, against growth of 0.9 per cent in January. This is above the 3-month average of 1.2 per cent.
Ambient food inflation increased to 2.8 per cent year on year in February, against growth of 2.5 per cent in January. This is above the 3-month average of 2.7 per cent.
Commenting on the figures, Helen Dickinson, Chief Executive of the BRC, said, “While shop prices remained in deflation in February, prices on the month saw the biggest increase in the last year.
"Breakfast, in particular, got more expensive as butter, cheese, eggs, bread and cereals all saw price hikes.
"Climbing global coffee prices could threaten to push the morning costs higher in the coming months.
"In non-food, month on month prices rose as January Sales promotions ended, especially in electricals and furniture. But discounting is still widespread in fashion as retailers tried to entice customers against a backdrop of weak demand."
Dickinson added that inflation will likely rise across the board as the year progresses with geopolitical tensions running high and the imminent £7bn increase in costs from the Autumn Budget and the new poorly designed packaging levy arriving on the doorsteps of retailers.
"We expect food prices to be over 4 per cent up by the second half of the year. If Government wants to keep inflation at bay, enable retailers to focus on growth, and help households, it must mitigate the swathe of costs facing the industry.
"It can start by ensuring no shop ends up paying more than they already do under the new business rates proposals, and delaying the new packaging taxes.”
Mike Watkins, Head of Retailer and Business Insight, NielsenIQ, said, “With many household bills increasing over the next few weeks, shoppers will be looking carefully at their discretionary spend and this may help keep prices lower at non-food retailers.
"However, the increase in food inflation is likely to encourage even more shoppers to seek out the savings available from supermarket loyalty schemes.”
Simpler eating habits, lesser shopping trips, use of fewer ingredients and less snacking are some of the consumers habits highlighted by Kantar as it released its UK's grocery market share data for February 2025.
Take-home sales at the grocers rose by 3.6 per cent over the four weeks to 23 February compared with one year ago, according to the latest data from Kantar released today (4).
As the five-year anniversary of the first Covid-19 lockdown approaches, Kantar has been looking into how consumers’ grocery habits have evolved – from lifestyle to loyalty.
Sally Ball, head of retail at Kantar, comments: “Back in 2020, we didn’t know just how big an impact the Covid-19 pandemic would have on our lives, but five years on we can get a picture of its lingering effects on consumers.
"We haven’t gone back to old patterns and shopping trips remain below pre-pandemic times. Households made one less visit to the supermarket in February 2025 than in 2020, while online shopping appears to have stuck, taking a 12.3 per cent market share this month versus 8.6 per cent in February 2020.
“One of the most interesting changes has been a move to simpler eating habits as we look for convenient shortcuts to make our lives easier. People are taking less time to prepare meals, and prep time in the evening, for example, has declined from almost 34 minutes in 2020 to 31 minutes in 2024.”
Kantar consumption data also shows that people are now using fewer different ingredients when making food, both at lunch and in the evening. Consumers are snacking less often too, dropping more than 330 million occasions in 2024 versus 2020.
Ball continues, “Of course, it’s hard to untangle the cost of living crisis from any post-Covid analysis, and the other big headline of the past few years has been consumers’ hunt for value.
"You might think that people would shop around more to find the best deals but in fact, that’s not the case. Households visited just under five different grocers this month, the lowest level in February since 2021.
"The growth of supermarket loyalty schemes is partly behind this as shoppers use them to unlock exclusive discounts.”
Since Clubcard first hit the scene in 1995, Tesco has risen to become Britain’s largest grocer – up from second place 30 years ago. It now holds 28.3 per cent of the market in the 12 weeks to 23 February 2025, while its sales growth is at its highest since March 2024 at 5.8 per cent.
Retailer promotions helped to hold grocery price inflation steady at 3.3 per cent in February 2025, as spending on deals rose again. Items bought on offer now account for 27.6 per cent of sales, a rise of 0.3 percentage points on last year. Premium own label lines also continue to be popular, growing at 13.3 per cent this month, as people seek cost-effective ways to treat themselves.
Turning to the discounters, Aldi accelerated its growth by attracting 377,000 more shoppers through its doors. The retailer achieved a market share of 10.3 per cent following a 4.9 per cent rise in sales – its highest rate since January 2024. Lidl has also seen its portion of the market rise by 0.3 percentage points to 7.3% compared with February 2024.
Sainsbury's made gains in the 12 weeks to 23 February, increasing its share of the market from 15.5 per cent to 15.7 per cent compared to this time last year. Morrisons now holds 8.6 per cent of the market while Asda has 12.6 per cent.
Convenience retailer Co-op remained in growth, giving it a market share of 5.1 per cent while share of symbols and independents slipped further by 1 per cent.
Consumers do not think that UK retailers and brands are doing enough to reduce the use of plastic packaging, finds a new research.
According to new research by Aquapak released today (4), 65 per cent of Britis consumers feel that they were falling short when it comes to cutting harmful plastic, with just 18 per cent saying they are doing enough.
The findings show that British shoppers want to see retailers take positive steps to reduce the impact of the packaging they use on the environment.
While almost 59 per cent said they wanted to see the conventional plastic used in packaging replaced with an alternative material which can be recycled and doesn’t harm the environment, 57 per cent said they should use more paper-based packaging which can go into kerbside recycling collections.
Almost half (49 per cent) said that they should stop using traditional single-use plastic completely.
Over the next 12 months, 56 per cent of those surveyed said they will try and buy more products that do not use single-use plastic packaging, such as polyethylene bags and hard to recycle packaging like crisp packets and chocolate wrappers.
They are prepared to take even more extreme steps over the next three years, with 46 per cent saying they will stop buying products that use single-use packaging and hard to recycle packaging altogether.
Almost one third (32 per cent) of consumers said that they would be prepared to pay more for packaging which is 100 per cent recyclable when they buy products such as dry foods and snacks. Of these, 43 per cent said they would pay 5 per cent more.
Mark Lapping, Chief Executive Officer of Aquapak, comments, “Our research shows that consumers want to see more from brands and retailers when it comes to cutting the use of plastic packaging.
"We recognise that businesses have many challenges to deal with when it comes sustainability, whether it is carbon, water or biodiversity but it is important that they don’t just pay lip service to new technologies but opt for real change.
“The good news is that there is a commercially proven solution that will make their plastic packaging problems disappear.
:We have developed Hydropol which can be incorporated into paper to create planet-friendly wrappers for dry foods, snacks and confectionery, or used as film to make garment bags, providing an alternative to current packaging which is hard to recycle and inconvenient for consumers.”
Aquapak has developed a marine-safe, non-toxic polymer technology called Hydropol, which breaks down harmlessly in all existing recycling streams.
When used in place of conventional plastic in crisp and snack wrappers it makes unrecyclable packaging fully recyclable because the Hydropol layer is formulated to dissolve or biodegrades completely. If it does escape into the environment, it is easily broken down by micro-organisms without forming harmful microplastics.
Nothing is left behind except CO2, water and biomass that can even be used in renewable energy plants, claims Aquapak.
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Independent Retailers Face Growing Financial Pressures
Independent retailers association The Fed has expressed extreme disappointment at the news that PayPoint’s monthly service fee is to rise from April. PayPoint, on the other hand, has reiterated that the rise in the fees is in line with "standard RPI increase" as well as increase in commissions.
Letters advising of the increase have been arriving with PayPoint’s network of retailers since Friday last week (February 28).
The letters state that the rise has followed PayPoint’s annual review of its prices against the retail price index (RPI). It adds that on February 19, 2025, RPI stood at 3.6 per cent.
However, Mo Razzaq, the Fed’s National President described the move as “extremely disappointing” coming at a time when independent retailers were facing unprecedented challenges.
He said, “Fed members are being tested to the limits. Costs are rising, retail crime is at its highest levels yet and independent retailers are beset with red tape.
"In April, businesses are already facing the perfect storm of increases both to national insurance contributions and the national minimum wage. Now, they will have this increase from PayPoint to contend with.”
In 2022 and 2023 – and following discussions with Fed officials – although the payment specialist increased its service fee charge, it absorbed the additional costs caused by inflation to protect its network of retailers. Last year, the full increase was applied.
After being advised of the impending increase at a meeting with PayPoint last month, Fed officials asked the company to think again.
Razzaq said, “It is a huge blow that although we raised the concerns of members with PayPoint, this appears to have fallen on deaf ears and, once again, the company is raising its monthly service fee in line with the RPI.
"PayPoint needs to be aware that this move could have consequences, with some retailers now looking ever more closely at the feasibility of offering some of its services.”
Meanwhile, PayPoint maintains that it remains committed to more opportunities for retailers and its services has resulted in more commissions in the past year.
A PayPoint spokesperson tells Asian Trader, "Our longstanding commitment to drive more opportunities to earn for our retailer partners remains strong, with even more profitable, diversified community services rolled out over the past year.
"This has driven an over 20 per cent increase in commissions paid to our retailer partners year on year, with even more opportunities to generate revenue through our partnerships coming in 2025.”
“It is therefore important to consider the standard RPI increase of 3.6 per cent in that context, with more investment this year in a new Store Growth Specialist team to support our retailers in maximising opportunities to earn, an increase to the amount of face-to-face contact in store via our Retail Relationship Managers and delivering additional support to help retailers earn more revenue from these services."
"This comes a week after it was reported that PayPoint has increased the accessibility of its services by making key training guides available for retailers in Urdu, Indian Punjabi and Sinhalese, the most widely spoken languages among retailers across its network who do not speak English as a first language.
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Counterfeit cigarettes found hidden at a Bradford store (Photo via LDRS)
Undercover test purchasingconducted by Japan Tobacco International (JTI) in Bradford has shone a light on the scale of illicit tobacco and vape sales in the area.
Operatives carried out 50 test purchases across Bradford in October 2024, with all stores visited found to be selling counterfeit and contraband tobacco products, as well as disposable vapes whose puff-count related to a capacity well above the 2ml limit.
A trap door was used in one shop to keep the illegal products hidden until requested. In another location, illegal tobacco items were stored in the boot of a car outside and only retrieved when a customer asked to purchase. Counterfeit £5 notes were also given as change in two of the retail premises.
One of the most common illicit products available was a counterfeit 50g pouch of roll-your-own (RYO) tobacco – these were widely sold for just £3.50. For comparison, the recommended retail price of JTI’s lowest price 50g RYO product is £31.25*. In fact, over half (54 per cent) of the RYO market is now made up of illegal and other non-duty paid sources.
The cheapest ready-made cigarettes (RMC) were available from as little as £3. A number of illegal vapes were also easily obtainable, with puff rates as high as 15,000, available for £15.
All evidence and information gathered will be made available to Trading Standards in anticipation that it will support their efforts to enforce and prosecute anyone found to be selling illegal products.
Already, JTI UK has helped prevent one of the stores identified in the test purchasing – Mix Mini Market on Gaythorne Road – from obtaining a premises licence when it presented its findings to the Bradford District Licensing Panel on 28 November 2024.
Ian Howell
www.asiantrader.biz
"Our test purchasing operation in Bradford found it to be one of the worst places in the UK for illicit tobacco sales," said Ian Howell, Public Affairs Manager at JTI UK. “It has become all too easy for the residents of Bradford to purchase illicit tobacco or vapes in various locations across the city. The scale of the illegal activity here is just a microcosm of the bigger issue across the UK.
“From the honest retailers’ perspective, they are not only losing out on tobacco sales, but they are also seeing wider basket spend decline with customers instead visiting illegitimate stores. On a wider level, UK taxpayers are losing out on millions in taxes from legal tobacco sales which might otherwise be used to benefit communities, with illicit profits instead filling the pockets of criminals.
“You simply can’t ignore the numbers – the evidence we have compiled this past year through test purchasing operations demonstrates the size of the problem we are facing. The Government urgently needs to acknowledge this issue and make tackling illicit tobacco a priority, rather than implementing a generational smoking ban that will only exacerbate the black market.”
If retailers know of a store that is selling illicit tobacco or vapes, they should report them by calling Trading Standards through the Citizens Advice consumer helpline on 0808 223 1133 or contact HM Revenue & Customs’ Fraud Hotline (0800 788 887), or Crimestoppers (0800 555 111).