Serious and organised crime (SOC) is now embedded across UK high streets, with convenience stores, vape shops and mini-marts among the sectors most exposed, according to a major new report from the Chartered Trading Standards Institute (CTSI) and the Anti-Counterfeiting Group (ACG).
The report, Hidden in Plain Sight, warns that criminal networks are increasingly using seemingly legitimate retail premises to sell illicit goods, launder money and fund wider offences, creating a growing threat for local retailers and communities.
Trading Standards professionals have identified organised crime as the number one threat facing the profession, with 96 per cent reporting encounters with organised crime groups (OCGs) and 97 per cent aware of suspected criminal activity operating from high street shops.
The findings underline mounting pressure on convenience retailers from rogue operators able to undercut legitimate businesses by avoiding taxes and regulations.
Convenience sector in the spotlight
The report highlights convenience stores and vape retailers as key areas of concern, estimating that in some locations up to half of mini-mart/convenience stores and vape shops may have links to organised crime.
Illegal tobacco and vape sales remain one of the most visible symptoms, costing the exchequer an estimated £1.8 billion in lost revenue in 2023/24, while also distorting fair competition for compliant retailers.
Trading Standards teams seized at least 2.2 million illegal vapes and 24.8 million illicit cigarettes in 2024/25, illustrating the scale of the challenge on the ground.
Criminal operators are also using sophisticated concealment methods, including hidden storage units and off-site supply chains, making enforcement increasingly complex.
The report warns that organised crime groups are exploiting vacant retail units left by the pandemic and wider structural changes on the high street. These businesses often present as legitimate but may be involved in:
- Selling counterfeit or unsafe goods
- Money laundering through cash-intensive operations
- Employing illegal workers
- Facilitating wider crimes such as drug supply and human trafficking
Such activity not only threatens consumer safety but also undercuts law-abiding retailers, erodes margins and reduces footfall in affected areas.
Around 32 per cent of consumers say crime and anti-social behaviour limit visits to their local high street, further impacting legitimate trade.
Scale of the problem
SOC is estimated to cost the UK at least £47 billion annually, with high street retail playing a key role in distribution networks for illicit goods.
The report also points to the growing professionalism of criminal networks, which operate international supply chains and use UK shops as final distribution points.
High street “hot spots” for organised crime include major cities such as Birmingham, London, Manchester and Liverpool, though the issue is widespread across towns and rural areas.
CTSI and ACG are calling for a coordinated crackdown, including:
- Increased investment in Trading Standards, rising to £100m over four years
- Stronger closure powers for persistently offending shops
- Enhanced intelligence sharing between agencies
- Tougher action on landlords who allow criminal activity
- Greater resources at ports and borders to intercept illicit goods
The report stresses that while Trading Standards plays a key role, tackling the issue will require multi-agency collaboration across police, HMRC and border forces.
Retail impact
For legitimate convenience retailers, the report highlights the urgent need for stronger enforcement to restore a level playing field.
Criminal operators’ ability to avoid duty and regulatory costs allows them to offer lower prices, drawing customers away from compliant stores while exposing communities to unsafe products.
The Independent British Vape Trade Association (IBVTA) has welcomed the report, stating that it is “all too aware” of the damage such criminal activity is having on the sector’s reputation, warning that an expanding informal supply chain is undermining both compliance and consumer trust.
The IBVTA said the problem is being fuelled by opportunistic wholesale supply routes and a proliferation of inexperienced “pop-up” retailers, many of which have links to organised crime networks.
This parallel supply chain bypasses UK regulatory requirements, meaning products often lack traceability, quality assurance and compliance with safety standards – posing risks to consumers and legitimate retailers alike.
The IBVTA warned that the actions of criminal operators are distorting public perception of the vape category, with illegal activity often conflated with the wider, law-abiding industry.
“We commend CTSI and the ACG for putting together this report and fully endorse their ten-point plan,” IBVTA CEO Gillian Golden said.
“The media often conflate organised criminal networks with law abiding vape businesses, when in fact these criminals just see illicit vapes as a commodity in the same way as illicit tobacco or counterfeit goods. That has damaged the public’s understanding of our sector.
“We have already seen where greater inter-agency working to tackle organised crime has been successful. It would be an even greater win for legitimate businesses and consumers if the government takes forward these recommendations.”