- Impact of illicit sales on convenience stores should not be under-estimated
- Retail crime already costs sector more than £100m-a-year
Illicit trade poses a growing and significant threat to the future of Scotland’s convenience stores, sector leaders have warned.
Research by the Scottish Grocers’ Federation (SGF) estimates that theft and vandalism already costs the country’s convenience stores a total of £104m-a-year. That’s an average of £19,600-a-store.
And the trade organisation has warned that other crimes are compounding those losses - with black market traders taking sales away from its members.
It highlighted the impact of the issue while calling for authorities to get tough on those responsible for the illegal sales of disposable vapes on the back of those being outlawed.
SGF Chief Executive Dr Pete Cheema said, “Illegal, irresponsible sales are yet another challenge for our sector to overcome.
“Unless enforcement agencies come down hard on the damage caused by illicit trade, we risk losing convenience stores, which are essential parts of communities.
“We have serious concerns that criminals will look to profit from the disposable vapes ban, delivering a significant blow to responsible community retailers working tirelessly to support their customers within the law.”
Single-use vapes became outlawed across the United Kingdom on Sunday (June 1). All stock needed to be immediately removed from shop shelves.
SGF has raised its concerns about illicit goods - and the need for effective enforcement of the law by police and trading standards - with the Scottish Government.
UK Government statistics show that £2.8bn in tax revenue is already lost to illicit tobacco. SGF fears that the growing market in illicit vapes will significantly add to those losses for HM Revenue and Customs (HMRC).
Dr Cheema added: “We need to do everything we can to stop the sales of cheap and unregulated products.
“The vast majority of retailers have robust measures to prevent underage sales such as Challenge 25, refusal registers and till prompts.
“Those trading on the black market are clearly not interested in the law or whether vaping products get into the hands of those who are underage.
“Failing to tackle this issue is not good for communities, the environment or the economy.
“The critical role that convenience stores play in the communities they serve can often be overlooked. Illicit trade poses a direct threat to their viability.”
SGF has worked hard in recent years to deliver its Healthier Choices, Healthier Communities campaign both nationally and in stores, with the message that if you smoke and wish to quit, then consider vaping, but if you don’t smoke, don’t vape. This has also been alongside calls to prevent marketing aimed at children.
SGF has issued a special guide to advise its members how to stay on the right side of the new law.
Those found to be breaking it could face a fine or a prison sentence of up to two years.
The new law - The Environmental Protection (Single-Use Vapes) (Scotland) Regulations 2024 - is the first of two major legal changes around the use and sale of vaping products.
Further regulations are expected to be introduced through the UK Government’s Tobacco and Vapes Bill, which is currently being debated in the House of Lords. This is expected to be introduced in Scotland through secondary legislation in the Scottish Parliament.
SGF continues to oppose restrictions on flavour in vaping products, a proven factor in helping people who wish to quit switch from cigarettes to less harmful vapes.
It also encourages members to follow Challenge 25 policies to avoid the risk of illegal sales.
Guidance to retailers shared by SGF includes that on how to identify a disposable vape, when a vape is not classed as refillable and when it is not classed as rechargeable. The full guide to retailers from SGF is available here.
SGF is urging anyone with information about the illegal sale of vaping products to contact Police Scotland or their local trading standards team.
