The convenience channel year in review

C-store retailers rose to many challenges during 2023

Scottish Grocer reported throughout the year on the many issues faced by convenience retailers.
Scottish Grocer reported throughout the year on the many issues faced by convenience retailers.

RISING costs, government interference and a crime wave; it’s fair to say that retailers have had more than their fair share of difficulties to contend with during the course of 2023.

While somewhat outside the larger public eye, plenty of behind-the-scenes goings-on have rightly caused concern for retailers across the country, with doubts about plenty of legislation and the impact it could have on their stores.

Here is a quick summary of some of the year’s biggest stories, highlighting just what retailers had to deal with during the course of 2023:

Scottish DRS delay debacle

Scotland’s deposit return scheme has been an endlessly contentious proposal since the Scottish Government first confirmed it would be pursuing the scheme back in summer 2017.

The proposed Scottish Deposit Return Scheme took many twists and turns before being shelved until 2025.
The proposed Scottish Deposit Return Scheme took many twists and turns before being shelved until 2025.

Now a full six years later, the future of DRS seems to be hanging by a thread in Scotland.

After the UK Government decided to remove glass from the scheme due to a condition under the Internal Markets Act, ScotGov made the move to delay the scheme’s implementation until October 2025, bringing it in line with the UK’s own go-live date.

Threats over scrapping the scheme altogether and debate in the parliament chamber did little to comfort retailers at the time as anxieties for the scheme only rose.

The delay ultimately saw countless people out of pocket, from retailers who fitted new machines to former staff from the now defunct scheme administrator Circularity Scotland.

Only time will tell how the rest of this story will play out as 2024 could deliver a glimpse for retailers of how to prepare for October 2025.

Disposable vape ban proposals

While no retailer out there would argue against plans to stop vapes from falling into the hands of those under the age of 18, the methods to do so being discussed at the moment would sorely impact many store owners out there.

Convenience channel chiefs have been trying to come up with alternatives to an outright ban on disposable vapes.
Convenience channel chiefs have been trying to come up with alternatives to an outright ban on disposable vapes.

Therefore, many industry figures have been fighting against the outright ban on these products that governments across the UK are bringing to the table, stating there are more effective ways to prevent these youth vapers and protect the environment.

As such, the Scottish Grocers’ Federation has been running a new campaign in association with Elfbar to introduce disposable vape recycling bins across its members’ stores to help illustrate the alternative options to government.

Similarly, United Wholesale Scotland has been delivering similar recycling bins to its Day-Today stores as well.

The Westminster consultation on this matter launched on 12 October with a 12-week response time, so the results of this will soon be revealed. It came a month after the Scottish Government had suggested such a move.

Food and drink inflation persists

Rising costs have been a plague on retailers for the last few years now and inflation has soared out of control since the end of the pandemic.

Stubbornly high inflation has been a major concern for food and drink manufacturers as well as for retailers.
Stubbornly high inflation has been a major concern for food and drink manufacturers as well as for retailers.

From energy costs last year to the price of groceries in 2023, retailers and producers have struggled to ensure they aren’t creating a hole in the finances just to help keep necessary foods on the table for consumers.

This year saw food inflation rise to its highest rate in 45 years, with the Office for National Statistics reporting a peak of 19.2% in its data for the 12 months to March 2023.

Overall, inflation has been slowly creeping down but food and non-alcoholic beverages still remains in the double digits, at least according to the latest data from the ONS as Scottish Grocer went to press, showing no relief for grocery prices across the entire year.

Retail crime an even more serious problem

As more consumers feel the pinch of the cost-of-living crisis, many have become increasingly desperate, turning to shoplifting and harassment in the process.

Economic difficulties have meant convenience retailers have seen soaring levels of crime in-store.
Economic difficulties have meant convenience retailers have seen soaring levels of crime in-store.

Retailers across the country have been reporting their stories that have left them victims, including a Port Glasgow store owner targeted by a man wielding a machete, who smashed the store’s till and stole hundreds of pounds worth of cigarettes.

Industry members have been calling on the Scottish Government to act on these attacks in recent months, with the SGF highlighting the recent blight on store owners at this year’s annual conference.

However, as of yet, little has been done to rectify this problem immediately by the Scottish Government.

As a result, retailers continue to suffer due to the thousands of pounds lost to damage and theft, not to mention the untold stress that plenty will be feeling  as they recover from robberies.