C-store owners urged to consider DRS positives
SCOTTISH convenience retailers have been urged to grasp the opportunities presented by the forthcoming deposit return scheme (DRS).
Scottish Grocers’ Federation (SGF) chief exec Pete Cheema said DRS would be the biggest change for the channel since National Lottery terminals were rolled out in 1994.
He said first takers for the lottery saw footfall rise while non-adopters suffered, even if they later got a machine. So, at the SGF Mini Summit in Falkirk last month, he urged delegates to get a DRS reverse vending machine (RVM) at the earliest chance.
Earlier, Jonathan Kemp, non-executive industry director for Exchange for Change (EFC), outlined the steps the DRS operator was taking and benefits the scheme would bring.
He said there had been lots of learnings from both the Irish and the failed Scottish scheme and that EFC was getting all the building blocks in place to help independent retailers make decisions about DRS and RVMs.
Benefits could include a transformation in levels of litter, greater production sustainability for the drinks industry and financial benefits for charities that register as return points.
He stressed EFC wanted the scheme to be inclusive and advised retailers to take a long-term view over the purchase of an RVM, considering an eight-year timescale – the average life of a machine.
Kemp believed store staff being able to explain to consumers how the 20p deposit would be returned by popping the container into a machine was a powerful message, adding: “It’s important to ask yourself why you wouldn’t want an RVM.”
Other discussion panellists said shop owners needed to consider how many DRS containers they sold and how many they might expect to be returned.
It was felt the scheme would change consumer behaviour – introducing a returns mission – and providing an RVM service could be a driver for footfall.
The siting of an RVM was also important – to ensure DRS was a good experience for the shopper and allowed for more customer contact and spending.
Kevin Lowe, of Scotmid Co-op, said retailers craved confidence in the scheme, after getting their fingers burned last time, but EFC was providing that through timely answers. He urged shop owners to have footfall at the forefront of their thinking about RVMs.
Jennifer Roberts, of Highland Spring, and Sam Jones, from CCEP, spoke about the importance of store operators being ready for the transition period between non-DRS and DRS-ready stock. Jones also said DRS might have an impact on decisions over pack formats and product innovations.
Meanwhile, John Lee, of Tomra, and Zak Miller, from CMB RVM Solutions, urged retailers to educate themselves over DRS and start discussions with RVM manufacturers now, in order to get the right solution for their store.
They also pointed out the importance of organising an installation slot, considering various types of machines and different finance options.
They assured retailers that machines were future-proofed for technology or scheme changes, with Miller adding: “Choosing DRS exemption might reduce footfall. Prepare, instead, to be successful.”
Concerns voiced over DRS return handling fees
CONVENIENCE retail chiefs have expressed worries about the DRS return handling fees announced by Exchange for Change (EFC).
Shops with a manual return system will get 3p per container, while those with a reverse vending machine (RVM) will be paid 5p per unit for the first 225,000 a year and 1.3p for each subsequent item.
The Association of Convenience Stores (ACS) has warned that thousands of retailers won’t be able to cover their costs if they host an RVM.
It reckons the costs of having an RVM will run beyond £10,000 a year, meaning stores would have to see returns of at least 4,000 containers a week to break even.
ACS chief exec Ed Woodall said: “Hosting an RVM should be cost neutral, but the fees will mean some convenience stores will be net losers under DRS or forced to run burdensome manual return points.”
The Fed national president Hetal Patel said: “While we would have preferred higher rates, the fees announced are not unexpected. We have concerns about the direct and indirect costs.”
SGF chief exec Pete Cheema said: “EFC must look again at the fees and account for the full costs of staffing, cleaning, servicing and loss of floor space, to ensure retailers are getting a fair settlement.”
EFC have promised a review in early 2027.
