Scottish Grocers’ Federation (SGF) has on Sunday (5 March) indicated that while it reaffirms its commitment to a fit for purpose deposit return scheme (DRS) for consumers and small retail businesses, the present scheme fails to provide this.
This follows the recent DRS parliamentary statement on 1 March by Circular Economy Minister Lorna Slater which the trade body said does not appear to recognise ‘the critical business viability issues that the many of the unresolved operational aspects of the scheme are presenting to small business and the convenience retailers who will be return point operators’.
SGF also noted that the publication of the ‘Deposit Return Scheme: Blueprint for retailers and hospitality providers’ by Circularity Scotland Limited (CSL), the scheme administrator, has significantly changed the payment terms for all return point operators (RPOs) in Scotland without sufficient notice. This will mean that many businesses will face the scenario of being in financial distress while waiting for significant sums of money back from CSL, the SGF added.
“We have met extensively, for over 18 months, with both Circularity Scotland the scheme administrator, and the Scottish government with a view to securing the guidance, clarity and support needed, to allow us to help our members successfully play their part in the scheme. To date however, there is still uncertainty around key aspects of the scheme and there is the real risk of thousands of stores closing due to cash flow issues or significant loss of footfall,” Pete Cheema, SGF chief executive, said.
SGF has listed some of the current key issues:
Payment terms: CSL have significantly changed the payment terms for all return point operators in Scotland without sufficient notice. Many RPO’s have committed to Reverse Vending Machines (RVMs) based on 7 day payment from when scanned into the RVM’s in their stores as CSL have previously highlighted. Now, for the first time in 18 months they have been informed it will be a full month before payments are made to RPO’s at a time when they have invested tens of millions buying RVMs and installing them. Now many simply do not have the cash flow to cope with this very late change to maintain their business, especially the convenience industry. For manual takeback, given there is no uplift schedule it is now suggested the minimum period is two full weeks before payments are made, dependent on when product is uplifted.
Appeal process: The appeal process is wholly unreasonable, 28 days to review and then a further 14 days before payments may be made. A full six weeks later, after payments should have been made, the scheme administrator will make payments. This is unsatisfactory and will seriously impact small business cash flows.
Exemptions: The exemptions process is extremely confusing and overly complex. A proximity exemption is only available to retailers where there is another return point within 400m (which is considered to be approx. 400m as a pedestrian would travel, instead of a straight-line distance) and that return point has consented to the application for an exemption. Alternatively, they can seek an environmental health exemption but in doing so are required via an online process to upload glass policies, planning applications and send in pictures but limit to 5 megabytes. They also must be able to demonstrate that there is no reasonable way for them to operate a return point on their premises without breaching their obligations towards food safety, health and safety, fire safety, environmental protection, and public health. It is not clear, from a business perspective, how to advise a retailer about their options around exemptions as nobody knows the volume and capability until the collection process is published as a confirmed contract – CSL were going to deal with but now seems this has been pushed back to retailer.
“Unfortunately, our plea for support was not followed through and there is a serious crisis at present, with business being required to participate in a scheme with an administrator that, in our view, is simply not listening to us,” Cheema said.
“Retailers members are pragmatic and resilient, they proved that through their exemplary service to communities up and down the country during the pandemic. However, they are being confronted with the scenario of putting their business at risk by signing up to prohibitive terms and conditions, or stop selling drinks in Scotland which will put thousands of community stores out of business.”
SGF has sent a paper to Lorna Slater on 27 February setting out in detail over 40 outstanding issues around the scheme which still require to be addressed and have asked for a response within 14 days.
Photo: iStock
Other key issues listed by the SGF include:
Retailers who have closed loop operations with compacted glass, there is still no detail on how reconciliation of glass is being done, yet unreasonably being asked to commit to this scheme administrator.
The collection frequency is vague, non-committal and ignores what the convenience industry has asked for. To state small, medium or large with no volume beside it means RPO’s cannot plan for waste storage based on this and there is simply insufficient time for them to build structure due to scheme administrator refusing continually to engage on a timescale that was achievable.
The collection frequency based on this is insufficient and does not serve convenience business who need frequent uplifts due to minimal storage of scheme vessels, this has been highlighted for 18 months to both Lorna Slater and the scheme administrator, all of which has been ignored. The guidance issued by the scheme administrator and Zero Waste Scotland on 21 February was simply shut down your service and send consumers elsewhere if you are over capacity. This document gives no confidence businesses will be able to operate within the scheme due to chronic failure by the scheme administrator.
Clarity is still required around price marked packs. Currently the Price Marking Order and DRS regulations contradict one another in how they interpret display of deposits. The Scottish government must seek a solution to this to establish who has the authority over this matter, whilst pushing for definitive guidance.
Following clarity in early February on VAT rules, details still required on if the deposit charged to consumer is ZERO rated, or VAT EXEMPT.
Clarity is required around customer receipts in terms of what retailers legally must display. Thereafter they will need to change their ePOS systems to reflect agreed legal requirements.
The Zero Waste Scotland opt out process is not fit for purpose and failing industry as advised to Lorna Slater repeatedly in the past 12 months. On 21 February 23 Zero Waste Scotland confirmed that circa 90 per cent of all applications were not being approved by the Scottish government. The scheme administrator reduced its producer fees based on removing thousands of RPO’s from the scheme to make it efficient for big producers, this is not on track as less than 200 applications have been made according to Zero Waste Scotland on 23 February.
The Scottish Government failed to plan fairly or properly for convenience in Scotland. The government’s planning officials in 2020 were informed to only adapt regulations “PDR” for supermarket and retail park installs. Many convenience businesses now trying to find solutions are unable to attain planning consents and coming up against significant obstacles despite local authorities trying to support them.
As industry leaders is cash handling, Volumatic has long supported the use of cash and the importance of maintaining access to cash for both consumers and businesses. The company recognises the importance of the new set of rules created by the Financial Conduct Authority (FCA) two months ago, to safeguard access to cash for businesses and consumers across the UK.
Since introduction, the new rules are intended to ensure that individuals and businesses who rely on cash can continue to access it and the outcome has already sparked the creation of 15 new banking hubs across the UK, including one in Scotland, with many more to follow.
These hubs provide shared spaces for consumers to access basic services, such as depositing and withdrawing cash, and are being embraced by businesses keen to support the use of cash, who have been struggling in recent years due to the flurry of bank closures across the UK.
With this in mind, Volumatic welcomes the increase in banking hubs and other facilities but recommends businesses go one step further to make things even easier.
“We have known for some time that more and more people are using cash again on a daily basis and so it’s great that access to cash is being protected by the FCA, something that we and others in the industry have been campaigning for, for a long time,” said Volumatic’s Sales & Marketing Director Mike Severs. “Both businesses and consumers need to have easy and local access to cash, and these new rules ensure cash usage continues to rise and will encourage more businesses to realise that cash is still an important and valid payment method.”
With time being of the essence for most businesses, making a journey to the nearest bank, banking hub or Post Office isn’t always possible on a daily basis, plus there is the obvious security risk to both the money and the individual taking it to consider.
Volumatic offers integration with the G4S CASH360 integration
Volumatic’s partnership with G4S, announced back in April 2024, means every business dealing in cash anywhere in the UK can have access to a fully managed solution. This will be especially relevant to those who currently have to walk or travel a distance to a bank or PO to deposit their cash.
Severs adds: “Although having more banking facilities is fantastic news, Volumatic can help businesses even more by bringing the bank to them through an investment in technology like the CCi that can offer integration with the G4S CASH360 solution. Together, we make daily cash processing faster, safer, and more secure and the combination of solutions will save businesses time and money for years to come, making it a truly worthwhile investment.“
Volumatic offers a range of cash handling solutions, with their most advanced device being the CounterCache intelligent (CCi). This all-in-one solution validates, counts and stores cash securely at POS, with UK banks currently processing over 2.5 million CCi pouches each year. When coupled with the upgraded CashView Enterprise cash management software and its suite of intelligent apps, the Volumatic CCi can offer a full end-to-end cash management solution – and now goes one step further.
It does this by providing web service integration with other third-party applications such as the CASH360 cash management system, provided by the foremost UK provider of cash security, G4S Cash Solutions (UK).
“Ultimately, only time will tell how successful the FCA’s new rules will prove. In the short amount of time the new legislation has been in place, the signs are already looking good, and coupled with the new technology we offer, it is a good thing for businesses and consumers alike in the ongoing fight for access to cash and more efficient cash processing,” concludes Severs.
Retail technology company Jisp has launched an NPD service as part of its new Direct to Retailer business unit.
The new NPD service will allow brands to launch or trial new products in a guaranteed number of convenience store locations, with on the ground review of execution by Jisp’s retail growth manager team, and performance data and insights deliverable through its scanning technology and back-office systems.
Brands will also be able to draw on retailer and consumer feedback on the product and its performance thanks to Jisp’s significant resource in user communication, with over 1,000 retailers and more than 100,000 registered shoppers.
Brands can set the parameters of the NPD activity delivered through Jisp’s new service, selecting the duration of the campaign, the number of stores to launch into and even the geographic spread or demographic make-up of the stores included.
Product merchandising and promotional execution in store is monitored by the Jisp RGM team and full reporting is available to help brands better understand the success of their new product and shape future promotional strategy.
This robust data and insight set means that Jisp can not only provide a reliable view of what is selling in stores, but through its scanning technology can also indicate who is buying the product, when, where and why.
Alex Rimmer
“As part of our recent strategic review and restructure, we identified five key pillars of growth, or business units through which to drive new business,” said Alex Rimmer, director of marketing & communication at Jisp.
“Our existing core business already provided us the means to develop new services efficiently and through discussions with major brands, retailers, wholesalers and industry authorities, we identified a need for guaranteed implementation and execution of NPD in the convenience sector.”
Compliance is further assured using Jisp’s Scan & Save scanning technology along with a retailer reward scheme which pays stores for their participation and commitment to the process.
With 1,000 stores already registered with Jisp, the company is in talks with other businesses about opening the new NPD service to their stores given the benefits of securing NPD and reward for execution.
“This is a Win-Win for the sector,” added Alex Rimmer. “Brands can create a bespoke NPD launch campaign with a guarantee that their product will be instore, on shelf and correctly merchandised and promoted, receiving actionable data and insight to shape future strategy. Retailers secure access to NPD, support in merchandising it and reward for taking part, while customers find more local touch points where NPD from their favourite brands are available.”
With this new service promising to be such a valuable asset to the market, retailers and brands are encouraged to contact Jisp to capitalise on the opportunities.
Tesco is slashing the price of more than 222 own-brand and branded products in its Express convenience stores.
Essentials including milk, bread, pasta and coffee are included in the lines which have been reduced in price by an average of more than 10 per cent at Tesco Express stores. The retail giant has made more than 2,800 price cuts across stores in recent months. With 2,048 of convenience stores at the end of the 2023-24 financial year, Tesco aims to benefit hundreds of thousands of customers from the cheaper deals.
The firm said the move comes in the wake of more than 2,800 price cuts made by the chain across its stores in recent months. From Wednesday, customers will pay £1.45 for a four-pint bottle of milk at their local Tesco Express store (down from £1.55) and a Tesco Toastie White Thick White Loaf is also 10p cheaper at 75p.
There are even bigger savings on Tesco Chicken Breast Portions (300g), which have dropped in price by 25p to just £2.25 and a 200g jar of Tesco Gold Instant Coffee now also costs 25p less at just £2.25. Among the branded products with price cuts are Warburtons White Sliced Sandwich Rolls, with the price of a six-pack cut by 10p to just £1.20 and Domestos Original Bleach 750ml, which is now just £1.19 in Express stores after an 11p price cut.
Tesco CEO Ken Murphy said, “Today’s round of price cuts on more than 200 lines in our Express stores underlines our commitment to offering great value to Tesco customers.
"Whether you are picking up coffee and milk for the office or a loaf of bread and a tin of soup on the way home, our Express stores offer both convenience and great value.”
This comes a week after One Stop, the convenience store chain owned by Tesco, has reported a surge in sales to nearly £1.3bn during its latest financial year. The Walsall-based company posted a revenue of £1.29bn for the 12 months to 24 February, 2024, an increase from the previous year's £1.17bn. Over the course of the year, the number of stores directly operated by One Stop increased from 712 to 733, while its franchised locations also grew from 291 to 317.
1. One in five people who have successfully quit smoking in England currently vape, with an estimated 2.2 million individuals using e-cigarettes as a smoking cessation tool.
2. The increase in vaping among ex-smokers is largely driven by the use of e-cigarettes in quit attempts, with a rise in vaping uptake among people who had previously quit smoking for many years before taking up vaping.
3. While vaping may be a less harmful option compared to smoking, there are concerns about the potential long-term implications of vaping on relapse risk and nicotine addiction. Further research is needed to assess the impact of vaping on smoking cessation outcomes.
ABOUT one in five people who have stopped smoking for more than a year in England currently vape, equivalent to 2.2 million people, according to a new study led by UCL researchers.
The study, published in the journal BMC Medicine and funded by Cancer Research UK, found that this increased prevalence was largely driven by greater use of e-cigarettes in attempts to quit smoking.
However, the researchers also found a rise in vaping uptake among people who had already stopped smoking, with an estimated one in 10 ex-smokers who vape having quit smoking prior to 2011, when e-cigarettes started to become popular. Some of those smokers had quit for many years before taking up vaping.
The study looked at survey data collected between October 2013 and May 2024 from 54,251 adults (18 and over) in England who reported they had stopped smoking or had tried to stop smoking.
“The general increase in vaping among ex-smokers is in line with what we might expect, given the increasing use of e-cigarettes in quit attempts. NHS guidance is that people should not rush to stop vaping after quitting smoking, but to reduce gradually to minimise the risk of relapse,” lead author Dr Sarah Jackson, of the UCL Institute of Epidemiology & Health Care, said.
“Previous studies have shown that a substantial proportion of people who quit smoking with the support of an e-cigarette continue to vape for many months or years after their successful quit attempt.
“However, it is a concern to see an increase in vaping among people who had previously abstained from nicotine for many years. If people in this group might otherwise have relapsed to smoking, vaping is the much less harmful option, but if relapse would not have occurred, they are exposing themselves to more risk than not smoking or vaping.”
For the study, researchers used data from the Smoking Toolkit Study, an ongoing survey that interviews a different representative sample of adults in England each month.
The team found that one in 50 people in England who had quit smoking more than a year earlier reported vaping in 2013, rising steadily to one in 10 by the end of 2017. This figure remained stable for several years and then increased sharply from 2021, when disposable e-cigarettes became popular, reaching one in five in 2024 (estimated as 2.2 million people).
The researchers found, at the same time, an increase in the use of e-cigarettes in quit attempts. In 2013, e-cigarettes were used in 27 per cent of quit attempts, while in 2024 they were used in 41 per cent of them.
Senior author Professor Lion Shahab, of UCL Institute of Epidemiology & Health Care, said: “The implications of these findings are currently unclear. Vaping long term may increase ex-smokers’ relapse risk due to its behavioural similarity to smoking and through maintaining (or reigniting) nicotine addiction. Alternatively, it might reduce the risk of relapse, allowing people to satisfy nicotine cravings through e-cigarettes instead of seeking out uniquely harmful cigarettes. Further longitudinal studies are needed to assess which of these options is more likely.”
Independent retailers association Bira has held a meeting with members of the Treasury team to discuss concerns following its robust response to the Government’s recent Budget announcement.
The Budget, labelled by Bira as "devastating" for independent retailers, was met with widespread indignation from Bira members.
Andrew Goodacre, CEO of Bira, said: “Thank you to all the members who have shared their thoughts on the impact of the budget. Based on this feedback, Bira has been robust in its response and judgement of the budget, especially where it is hurting the medium sized independents by as much as an extra cost of £200K per annum.
“We have also held a meeting with members of the Treasury team to discuss our concerns. Whilst there were no indications that any changes would be made, our concerns were listened to.
“We also discussed the proposed reform to business rates which is due to be in place for April 2026. It was clear from the meeting that Bira will be fully involved with this reform.”
Bira, representing over 6,000 independent retailers across the UK, earlier stated that the reduction in business rates relief from 75 per cent to 40 per cent (capped at £110k) from April 2025 will more than double costs for many retailers.
As a post-budget reaction, Goodacre said on Oct 30, "This is without doubt the worst Budget for independent retailers I have seen in my time representing the sector. The government's actions today show complete disregard for the thousands of hard-working shop owners who form the backbone of our high streets.
"Small retailers, who have already endured years of challenging trading conditions, now face a perfect storm of crippling cost increases. Their business rates will more than double as relief drops from 75 per cent to 40 per cent, while they're hit simultaneously with employer National Insurance rising to 15 per cent and a lower threshold of £5,000, down from £9,100. Add to this the minimum wage increase to £12.21, and many of our members are telling us they simply cannot survive this onslaught."