Exchange for Change announces plans to help retailers
EXPERTS from across the retail space have broadly welcomed plans from Exchange for Change to support retailers in the UK with the implementation of the deposit return scheme (DRS).
As part of the process to introduce DRS to the UK, Exchange for Change has recently set out two key areas of particular importance to retailers – return point exemptions as well as targeted financial support for the implementation of reverse vending machines (RVMs).
The firm has confirmed that, under its regulations for DRS, retailers in urban areas with a retail space of under 100m² will automatically be exempt from operating a return point. These retailers will not be required to apply for an exemption, though they can still choose to operate a return point.
In addition to this, the scheme organiser has said it is exploring the introduction of other additional conditions under which retailers will be able to apply for an exemption to operating a return point where this does not undermine local consumer access.
These conditions are intended to cover proximity to alternative local return points, and the ease with which a store is able to host a return point, considering criteria such as physical space and layout constraints, health, safety or hygiene risks, building or heritage restrictions, and utilities or infrastructure limitations.
Exchange for Change has also said that all urban retailers whose sales areas are between 100m² and 199m² will be able to apply on this ground for exemption and similarly for rural retailers with under 200m² of sales area.
Any exemptions will be subject to approval by Exchange for Change and would be contingent on the number of other local return points in the area.
In addition to these exemptions, some small, independent retailers will be able to apply to be part of the targeted grant scheme to support implementation of DRS. Grants will be targeted to small, independent retailers where an RVM is the most appropriate solution based on volume return levels.
The proposed grant level is £6,000 per site, paid over the course of three years with three annual payments of £2,000. The first payment is expected to be made approximately three months after implementation of an RVM.
Exchange for Change has said this grant scheme will support those retailers to improve the viability of participation in the scheme and ensure there is a well-distributed and effective return point network across the UK.
The latest announcements from Exchange for Change have received support from across the industry, with the Association of Convenience Stores (ACS) calling for further support to make the scheme cost neutral for retailers.
Ed Woodall, chief executive at the ACS, said: “It is essential that local shops are not penalised for hosting return points, so we welcome the introduction of grants for the smallest retailers and a more proportionate approach to exemptions. Retailers need clarity on the net costs of the scheme to be able to make a decision on how they take part.
“If grants and handling fees are not set at the right level, the scheme risks failing not just the retailers expected to deliver it, but the communities they serve, by undermining convenient access for consumers to recycle containers and redeem deposits.”
RVM manufacturer EcoVend has called the latest moves from Exchange for Change a “pragmatic step in recognising the challenges many smaller retailers face”. The firm has also called for these smaller retailers to consider introducing a return point, even if they are exempt under the new rules.
Travis Way, managing director at EcoVend, said: “There is a real opportunity for those smaller retailers that do participate. Hosting a return point can help drive increased footfall, create new customer touchpoints, and deliver procurement efficiencies.
“However, as the scheme develops, there remains a clear need for education and guidance to support smaller businesses, which currently remains limited. Providing them with better information on costs, requirements, and potential benefits will be essential to help them make informed decisions and participate confidently.”
