The Scottish Grocers Federation (SGF) has warned that small convenience retailers face a deluge of new regulations over the next couple of years that could result in store closures.
SGF noted that both governments in Edinburgh and Westminster are failing to recognise what can reasonably be delivered by convenience retailers and that businesses face being suffocated with overregulation.
The trade body highlighted that by the end of 2025, the sector will face at least six new areas of regulatory burden, including:
- In-store restrictions to the placement and marketing of alcohol products, in addition to a rising Minimum Unit Price on alcohol products.
- Restrictions on the promotion and location of dozens of food items categorised as high in fat, sugar, or salt.
- Potential restrictions on the visibility and sale of vaping products in store.
- A generational ban on the sale of tobacco products.
- Requirements to meet new net zero targets relating to the Circular Economy Bill and WEEE regulations, including changes to waste and recycling management.
- A UK wide deposit return scheme.
SGF noted that retailers are also facing a surge in retail crime and a real terms reduction to business rates relief.
Dr Pete Cheema OBE, SGF Chief Executive, said: “We are warning ministers now, this direction of travel will result in stores that are lifelines for their communities turning off the lights for good.
“Our governments have said they want our local businesses and communities to flourish, to promote local living, local produce, and local services. In reality, they are doing everything they can sink thousands of essential local businesses across Scotland.
“Regulations and restrictions always fall hardest on smaller businesses, most of whom just don’t have the capacity or resource to cope with change after change. Moreover, it fails to account for the devastating impact of external factors such as inflation, energy prices and the cost-of-living crisis.
“SGF believes in responsible community retailing, and we want to help make our country a better place to live. Instead of attacking well-meaning businesses, ministers need to think again and come up with a joined-up and workable approach to introducing new regulation.
“It’s the easy road for ministers to place ban after ban on our sector, but what will remain once the dust has settled?”
NAM Implications:
- Easier to stop a business than incentivise it…
- Coupled with the government appearing to favour ‘big’…
- …means that some of the lights may have to go out…
- …before rescue is put on the agenda.
