No big drink maker feels that store size is a reason to exempt a retailer for Deposit Return Scheme (DRS), states a recent report after analysing submissions made to the Department for Environment Food & Rural Affairs (Defra) consultation last year.
As per a report by betterRetailing based on 13 proposals submitted by leading drink manufacturers including Suntory Beverage & Food GB&I (SBF GB&I), Nestlé, Danone, Heineken, Coca-Cola Europacific Partners (CCEP), Britvic, PespiCo, Diageo and AB InBev, store size is not a matter of concern to house a reverse vending machine (RVM), or take bottles manually behind the counter.
Scotland, which is spearheading the scheme and preparing for a 16 August 2023 rollout, faced criticism last year for excluding store size as a valid reason.
A DRS is expected to be implemented in England, Wales and Northern Ireland by late 2024 – six years after the government announced it.
Breach of safety and close proximity to another return point were cited by the drink makers as the main reasons for exemption, stated the report, adding that the crushing of glass by reverse vending machines remained the most controversial issue.
The report comes a week after it emerged that juice and milk cartons may also be included in the DRS.
Answering a parliamentary question from Tory MP Steve Baker, who has Tetra Pak’s UK base in his Wycombe constituency, environment minister Jo Churchill hinted that cartons could be included in the DRS.
Under the policy a small charge is set to be added to the price of drinks, with the money refunded when the bottle or can it is sold in is recycled.
Across the UK an estimated 14 billion plastic drinks bottles, 9 billion drinks cans and 5 billion glass bottles are used a year. Ministers say they want the scheme to be in place from "late 2024 at the earliest", delayed from an original plan for 2023.
The government previously said that including cartons in the scheme would have "environmental benefits", but proposed that they should not be included because of a lack of recycling infrastructure and demand for recycled carton packaging material.
Retailers should prepare for late rush of shoppers looking for fresh food, centre pieces for the dinner table and last-minute gifts, suggests experts forecasting that grocery spend is set to hit £10 billion in the two weeks leading up to Dec 21 with £6bn being spent at the grocery multiples
According to new data released NIQ today (11), total till sales growth steadied at UK supermarkets (+3.7 per cent) in the last four weeks ending Nov 30 2024, down from 4.0 per cent in the previous month. This slowdown in growth is likely due to milder weather, Black Friday distraction and shoppers holding out until early December for the big Christmas shop.
NIQ data also reveals with shoppers actively looking for discounts, over the last four weeks there was a boost to visits to stores (+5.7 per cent) ahead of online shopping occasions (+0.6 per cent). As a result online share of FMCG was at +13.1 per cent compared to last year +13.4 per cent.
Savvy shoppers capitalise on promotions
The percentage of sales purchased on promotion increased to 25 per cent from 24 per cent in October. Shoppers are seeking out savvy ways to save money and retailers and brands are hoping to drive incremental sales and basket spend through both more in-store promotional activity and increased loyalty app discounts.
"Personalised Savings" is thought to have unlocked this discretionary spend with 38 per cent of households set to use vouchers and points saved up for their Christmas groceries this year.
Black Friday also coincided with payday at the end of the month, seeing value growth sustained at the Grocery Multiples in the last week of November. Shoppers cashed in on higher ticket priced items while on promotion, such as 25 per cent off six bottles of wine and beauty and gifting offers.
However, this likely resulted in holding back spend on other items such as storage cupboard food, frozen and household basics where growth was flat.
Health and beauty wins out
In terms of category growth, NIQ data shows that the Health & Beauty category experienced an uplift in sales (+6.9 per cent), likely helped by Black Friday discounts. However, beer, wines and spirits (BWS) continue to struggle as value sales fell (-3.8 per cent) and there was no corresponding increase in unit sales (-2.5 per cent) compared to a year ago.
Looking ahead to Christmas celebrations with family, NIQ data reveals that 50 per cent of shoppers still expect to dine with turkey while 22 per cent opt for chicken, with beef following at 20 per cent. And 12 per cent opting for vegetarian or vegan alternatives.
Mike Watkins, NIQ’s UK Head of Retailer and Business Insight, said: “Sales are going to accelerate in the two weeks up to the 21st December. The biggest single week will be week ending 21st December with £6bn being spent at the grocery multiples, which is a third of the 4 weekly spend in one week.
"Food retailers can prepare for this late rush starting next week as shoppers will be looking for fresh food, centre pieces for the dinner table and last-minute gifts, including a trade up to premium items”.
Watkins adds: “Last year with food inflation at 7 per cent (BRC NIQ SPI), volumes fell in December 2023 however, this year NIQ expects volume growth of around +1 per cent.
"Even with 50 per cent of households saying it is important for them to make savings on their Christmas groceries this year, 66% still expect they will spend the same or more than last year (NIQ Homescan Survey) and 38 per cent intend to use points or vouchers saved up. So there are reasons to be cheerful”.
More than two in five UK retail employees (43 per cent) were at risk of quitting their jobs between July and September this year, an 11 per cent increase from the previous three months of 2024, according to the Retail Trust and AlixPartners’ latest Retail People Index.
The index, which surveyed 1,100 UK retail employees in July, August and September, found the percentage of people working whilst physically or mentally unwell, also increased to 41 per cent over this time. This is a 14 per cent year-on-year increase, and a 7 per cent rise from the previous quarter of 2024.
Younger retail workers, aged 19 to 24, and LGBTQ+ employees had the biggest ‘flight risk’, or propensity to quit, of 47 per cent, due to feeling more anxious and depressed about work and also least likely to feel they were recognised for doing something well.
Retail employees aged 19 to 34 showed the highest levels of presenteeism, where employees work when physically or mentally unwell, with half working while unwell.
And female workers experienced some of the biggest mental health declines over the period, with an overall wellbeing score drop from 72 per cent in July to 52 per cent in September for women aged 55 to 64. Those aged 25 to 34 also experienced lower wellbeing in July and September.
Staff were asked, by the Retail Trust’s and employee engagement platform WorkL’s online happiness assessment, about their mental and physical health and how valued and fulfilled they feel, to create an overall wellbeing score for the Retail People Index.
Questions around pay, recognition, relationships with managers, work-related anxiety and workplace safety were among those used to separately help calculate the likelihood of them leaving their jobs or working while unwell between July and September 2024.
Chris Brook-Carter, chief executive of the Retail Trust, said, “There are often unrealistic expectations that the summer will be a less stressful time for people working in retail, but the reality is it often brings added pressures for working parents and those having to put in extra shifts to cover colleagues’ holidays.
“That's why it's important employers don’t underestimate the support their staff members need during the summer months, especially as they'll need a happy and healthy workforce to rely on as they gear up for the busy shopping period at the end of the year.
“Investing in staff wellbeing and retention during this crucial period will allow retailers to be more productive and successful for the rest of the year, thanks to the fundamental link between the hope, health and happiness of a business’s workforce and its economic resilience.
“Thank you to AlixPartners and to our data partner WorkL for their support in creating this valuable index. Our hope is that businesses from across the retail sector and beyond can now build this insight into their wellbeing strategies as they look to the tailored support their people will need in 2025.”
Laura Bond, director at AlixPartners said, “Retail employees clearly feel increasingly unsettled. These year-on-year insights underscore the uncertainty felt across the industry – and the autumn Budget likely will have heightened tensions further as people brace for potential job cuts and role shifts in 2025.
“As retail leaders respond to the Budget, they have an opportunity and responsibility to step up and engage meaningfully with their teams. Supporting people through this period isn't just the right thing to do – it’s a key driver of business performance.
“High-performing retailers consistently demonstrate effective employee engagement and a commitment to advancing diversity and inclusion. These are critical strategies for navigating challenges, while fostering resilience and growth within the organisation.”
The government has made significant changes to the law in recent years to further push the UK towards becoming a smoke free country. Most notably, the government's "smoke-free generation" plan aims to create a generation that will never be able to legally buy tobacco products. Local authorities across the UK also deliver a wide range of services to help smokers to quit. Despite these efforts, around six million people in the UK are still smoking and it’s costing local authorities on average £936 to help a smoker to successfully quit.
The research, compiled by Haypp, looked at how much local authorities are spending on stop smoking services, vs the number of successful quitters. Based on current figures, it would cost local authorities a total of £5.61 billion to help every smoker in the UK to successfully quit.
With so much funding going towards quit-smoking services, it’s interesting to note that 57 per cent of people who have set a quitting date have successfully quit smoking in 2024. Men are more likely to be successful quitters, with 59 per cent of men who were trying to quit at the start of the year reporting that they have kicked the habit, compared to 56 per cent for females.
Stop- smoking services are provided by local councils, with each location offering a variety of services. On average, each council in England is spending £139,366 per year on quit smoking services which ranges from group support and one to one coaching, to free nicotine replacement patches and vape kits.
The data which can be viewed on an interactive map, view England quit smoking rates here, displays all of the areas around England based on the success rate for quitting smoking, as well as government expenditure and cessation tools. Overall, North Yorkshire had the highest quit smoking rate at 82 per cent, and Hartlepool reported the lowest quit smoking rate at just 13 per cent.
Additionally, the amount each council invested into stop smoking strategies and services varied considerably, with some councils investing much more than others in the effort to help people successfully quit. The councils currently spending the most per quitter, are:
1.Westminster – £6567
2.Ealing – £4771
3.Gloucestershire – £4043
4.Manchester – £3171
5.Telford and Wrekin – £3085
Quitting smoking strategies vary across the councils, but one highly successful method is encouraging smokers to switch to a less harmful nicotine product. In England, 58 per cent of people successfully quit using a nicotine replacement therapy product, such as nicotine pouches, and 63 per cent successfully quit using tobacco-free nicotine vapes as a quitting tool.
“Following UK government guidance, those who reduce the amount they smoke are more likely to stop smoking eventually," said Markus Lindblad, from Haypp. "The national harm reduction strategy, including switching to alternative, less harmful nicotine products, such as nicotine pouches, has been key to the UK being one of the most successful countries in Europe in reducing the number of smokers overall. While it comes with a high price tag, the UK has been very successful so far, and the investment is worth it.
“There are also several other possible contributing factors to these success rates, including local councils offering nicotine replacement therapy, free vape starter kits, online courses, and in person, one-to-one or group, support. All of these methods are excellent resources to help people quit smoking for good.”
The research, conducted during summer 2024, explores how rising living costs are impacting consumer spending habits. Among its findings, 43 per cent of consumers reported abandoning a purchase this year because their preferred payment method wasn’t available. Security also emerged as a key concern, with 54 per cent of respondents citing it as a critical factor in payment decisions. Nearly half (47 per cent) expressed discomfort entering financial details online due to security concerns. These concerns are further compounded by the increasing prevalence of cyberattacks, with 50 per cent of businesses reporting such incidents in the past year.
“Consumers have made it clear that payment choice and access to cash are essential to them," said Mike Severs, Sales & Marketing Director at Volumatic. "While digital payments are convenient for many, cash continues to offer unmatched security, privacy, and inclusivity. As cyberattacks become more frequent, it’s no surprise that consumers value the reliability and resilience of cash.”
The survey also shed light on consumer unease about a cashless society with 63 per cent expressing concern about losing access to cash, which the UK government has addressed through the new Financial Conduct Authority (FCA) rules introduced in September. Many consumers still prefer traditional payment methods, with 44 per cent indicating they would like to reserve goods online and pay in cash upon collection in-store. Additionally, 35 per cent feel uncomfortable leaving home without cash or a physical payment card.
Volumatic highlights that these findings reflect the relevance of cash as a payment method, as one in ten people are still paid in cash and that cash remains an essential option for millions of individuals.
Volumatic has long championed the importance of payment choice, and in 2021, the company collaborated with organisations like the Bank of England, Cash Essentials, and Vaultex to produce the white paper, Consumers Demand Payment Choice, which stressed the importance of businesses offering diverse payment methods to meet consumer needs. This message was reinforced at the 2022 Volumatic’s Cash 2030 Conference, where key stakeholders, including The Co-op Food Group, the UK Cash Supply Alliance, and Enryo, united to support cash as a critical payment method.
As businesses navigate economic challenges, Volumatic encourages organisations to consider these insights and offer a range of payment options that meet the needs of all while ensuring no consumer is left behind.
The UK government has announced new regulations requiring online marketplaces and vape producers to contribute to the recycling of waste electricals, including vapes.
The reforms, unveiled on Tuesday by circular economy minister Mary Creagh, aim to address the unfair burden placed on UK-based businesses, which have shouldered the majority of costs for recycling and processing waste electricals.
With 100,000 tonnes of household electricals binned every year, the Department for Environment, Food & Rural Affairs said the changes will for the first time make sure the burden of these costs does not unduly fall on UK retailers compared to their online rivals.
“Electrical equipment like vapes are being sold in the UK by producers who are failing to pay their fair share when recycling and reusing of dealing with old or broken items,” Creagh said.
“Today we’re ending this: creating a level playing field for all producers of electronics, to ensure fairness and fund the cost of the treatment of waste electricals.”
Under the plans, online marketplaces will need to register with the Environment Agency and report data on UK sales of their overseas sellers. This data will be used to calculate the financial contribution the online marketplace will make towards the costs of collection and treatment of waste electricals that are collected by local authorities and returned to retailers.
A new category of electrical equipment for vapes will also be introduced to ensure that the costs of collecting and treating vapes fall fairly on those who produce them.
Scott Butler, executive director at Material Focus, welcomed the reforms, emphasising the growing issue of FastTech items like vapes.
“These small, cheap and too easily thrown away items contain valuable materials such as copper, gold, and lithium which are lost forever and could instead power our tech future. Creating a separate category for vapes means that those who have been profiting from the boom in their sales can be held responsible for providing public takeback, communications and most importantly pay for recycling them,” he said.
Material Focus research reveals that 5 million vapes are either littered or thrown away weekly in the UK. These devices, often not designed with recycling in mind, pose significant challenges for waste management.