Scotland’s deposit return plunged into jeopardy

A POLITICAL showdown, a “shocking” exemptionsapproval-rate for stores, and “huge” cash�low concerns has left Scotland’s upcoming deposit return scheme (DRS) hanging in the balance.

Under the scheme, set to go live on 16 August, retailers will have to add 20p to the price of single-use bottles and cans, which consumers can redeem by returning them to be recycled.

Scotland has been spearheading the scheme for several years, but in recent weeks, the UK government has threatened to halt it altogether, until a uni�ied approach from all UK nations has been decided.

Scotland secretary of state Alister Jack criticised the scheme, and, as reported in The Guardian, told the House of Commons during a session that it would be bad for businesses and consumers.

However, despite growing intensity, scheme administrator Circularity Scotland Limited’s (CSL), chief operating of�icer, Simon Jones, has con�irmed DRS will be going live on the pre-agreed date.

Speaking at the Fed’s Scottish Business Event in Glasgow last week, he said: “We understand there are a lot of big decisions for retailers to make, and we will do everything we can to support them. Right now, we are preparing for the scheme to go live when it should.”

Registrations for retailers wanting to take part and become a return point operator (RPO) opened earlier this month. RPO’s can either operate the scheme via automation, using a reverse vending machine (RVM), or manually, taking containers back over the counter.

However, retailers can also apply for an exemption. The applications process opened in April 2020. At the time, retailers were eligible only if they struck up a partnership with an alternative return point within close proximity, or if they could prove participating in the scheme would breach environmentalhealth requirements.

In November, the Scottish government announced a new return-point-mapping and exemption-support service to help retailers identify alternative return points, and remove the requirement to share commercially sensitive information. Most importantly for local shops, the government announced it would take the size of a premises into account in determining the risk of breaching obligations.

Zero Waste Scotland con�irmed to Retail Express, that, as of 24 February, a total of 139 applications had been lodged, with only

22 approved, seven denied and the rest in the process of being assessed, representing a one-in-four storeapproval rate.

The Fed’s national deputy vice president, Mo Razzaq, described the lack of approvals as “truly shocking”. He said: “It looks as though our members will now be forced to be a return point and pay huge costs to buy a machine or �it out their stores for a mass of empty bottles and cans at a time they can least afford it.”

CSL has already con�irmed that stores operating an RVM will receive payment of their handling fees per bottle within a month, and seven days for those taking back containers manually

However, Razzaq stressed that waiting a month will leave him nearly £4,000 out of pocket. Speaking at the Fed’s event, he said: “I’ll easily process more than 2,000 bottles a week. Factoring in all the costs involved with the machine, I’ll be nearly £900 down a week, and this is my biggest worry.

“The length of time this payment will take to reach us will cause me huge cash�low issues, and this needs to be revisited as a matter of urgency. I believe it should be the same length of time as those retailers taking part manually.”

A spokesperson for CSL responded: “As the scheme beds in we will continue to review costs and payment terms to ensure we operate as leanly as possible and minimise the impact of DRS on our stakeholders. However, it must be noted that a 30day payback period is a standard practice for many UK businesses. Any retailer concerned about any aspect of the scheme should get it touch so we can discuss their particular circumstances and support them.”

For the full story, go to betterRetailing.com and search ‘DRS’

How is Google’s free plug-in device helping generate footfall to your store?

“We’ve noticed a real impact since using it. We’ve had it for six-to-eight weeks. We’ve been getting a lot of people calling and asking us if we have certain things in stock as Google had told them how many of a certain product we had in a week. The number of enquiries has increased, but I don’t know if it’s actually made a difference yet with people coming into the store as it has been a short time.”

Kavita

“Our staff do monthly reviews of Pointy, so we will be doing one at the end of the month. I don’t actually oversee that process myself, but, on the whole, I would say this device is a positive for retailers. We have had it operating in the store for a little while, and it’s easy to use, as you just connect the USB that goes from the scanner to the EPoS system, and then it uploads everything automatically.”

Vrajesh Patel, Londis Dagenham, east London

“We ordered it 18 months ago, and have been using it. It gives us an online presence and showcases which products we have in stock. We had someone come from Birmingham, a 45-minute drive from us, looking for Prime, so they were able to call ahead to check we had it in stock. It’s good for footfall as people can return to you when they like what you stock, so you reach a market that’s not known to you.”

Chloe Taylor-Green, Spar Western Downs, Staffordshire

Do you have an issue to discuss with other retailers? Call 020 7689 3357 or email megan.humphrey@newtrade.co.uk

NEWSPAPERS: Daily Mail Group (DMG) has launched a scheme giving “enhanced payments” on delivered copies, with rival publishers urged to follow suit. Retailers and home news delivery (HND) agents taking part in DMG’s subscription platform on HND software PaperRound can opt in to get an extra 0.7p on every copy of the Daily Mail and Mail on Sunday they deliver.

For the full story, go to betterRetailing.com and search ‘DMG’

PAYPOINT: The firm has completed its acquirement of Appreciate Group, giving partnered stores access to new shopping-voucher sales opportunities. The group provides Love2Shop, Park Christmas and HightStreetVoucher.com services. PayPoint’s corporate affairs and marketing director, Steve O’Neill, said: “In the past year, total commission paid to PayPoint’s retail partners has increased by 25%, driven by the introduction of new products and services, alongside significant growth in existing offerings.”

Good Week Bad Week

KETCHUP: Retailers have hit back at Booker after the wholesaler increased the price of its value Euro Shopper tomato ketchup by nearly 100%. Pricing of the 470g product showed that the price-mark had risen from 69p in February to £1.29. In comparison, 460g Heinz Ketchup was price-marked at £2.79, while a 550g Tesco non-price-markedpack own-label ketchup was £1.

INFLATION: Independent retailers are struggling to keep up with the pace of inflation, according to data from Kantar. Figures for the four weeks to 19 February show despite grocery price inflation hitting 17.1%, independent convenience stores saw just a 1.8% year-on-year increase for grocery sales over the 12 weeks.

C Y MY CMY

ALEX YAU

INDEPENDENT retailers have incorrectly received withdrawal notices for their F’real machines, due to their devices being fitted with outdated hardware.

Last year, the milkshake supplier’s parent company, Rich’s, began removing machines from retailers on its free-on-loan model who failed to meet a sales target of said he was selling an average of 5,000 cups a year and disputed the letter with the firm. Meanwhile, Parfull Kumar, of Go Local Extra in Stockport, said he was receiving letters, despite his machine consistently breaking down.

10 cups per day. The decision was met with widespread criticism from store owners who had invested thousands of pounds to accommodate the machines.

However, several store owners told Retail Express they had received withdrawal letters from the firm in the past few months, despite exceeding the daily target.

Another affected store owner also disputed the notice and was told by F’real that “old hardware” on their machine was sending incor- rect sales data. Rich’s marketing, research and development director, John Want, said: “We recognise blenders require regular firmware updates and we do this on a rolling programme. Our service levels are consistently high, with 98% of issues fixed within 24 hours. In any instances where blenders have a serious malfunction or issue, we swap them out.”