Talking Retail Grocery and product news for independent retailers
With no formal budget statement planned this year, the Association of Convenience Stores (ACS) and the Federation of Wholesale Distributors (FWD) say there is confusion across the industry about whether the regulations still apply this time around.
They have written to the financial secretary to the treasury, Jesse Norman, calling on the government to provide clarity on the matter and are also asking for pre-budget allocation rules on stock to be lifted.
FWD chief executive James Bielby said: “The current restrictions on stockholding do not adequately take account of the continuing impact of Covid-19.
“Since March, tobacco sales in the wholesale channel have increased, while fewer people travelling abroad means there is less duty free and cheaper tobacco in the market.
“There has been a decline in illicit tobacco trade, with the full implementation of track and trace in May seeing some non-registered retailers exit the market.
“The introduction of a new track and trace system and ID from January may mean wholesalers will be looking to stock up on tobacco ahead of the end of the transition period. Continued restrictions on the amount of product that can be purchased, combined with increased sales as the UK heads into new lockdowns, are extremely unhelpful.”
ACS chief executive James Lowman said: “Retailers need urgent clarity from the government around the status of forestalling restrictions and pre-budget allocation rules should be lifted.
“Sales patterns during the Covid-19 pandemic have been unpredictable and extraordinary. Continued disruption from Covid-19, combined with the end of the EU exit transition period at the end of this year, mean that setting allocations would effectively be a guess and that would lead to a risk that retailers will face shortages.
“We must do everything we can to ensure that customers are not forced to seek out tobacco products on the illicit market.”
