Tobacco display ban for independent retailers looms

With so much press coverage recently regarding plain packaging for tobacco, retailers could be forgiven for thinking that was the most imminent change affecting the industry. In reality, there is now less than a month to go before the tobacco category goes completely dark as the display ban for small stores comes into force.

From 6 April stores under 3,000 sq ft will have to follow larger supermarkets in covering up the tobacco displays. These stores were given three more years than superstores in an effort by government to minimise the impact on independent retailers in particular - so are they now ready?

On the face of it, it looks like they are. In January, Martin Inkster, Philip Morris MD for UK & Ireland, warned as many as 20% of independent retailers were still not ready for the ban. “I think some guys are simply hoping it all goes away,” he suggested.

But that now seems to have changed, with 89% of independents who responded to The Grocer’s poll claiming they are ready, 92% knowing when the ban comes into force and 93% saying they know what is required to remain in compliance with the law.

There is also good news for indies who still aren’t ready and those who may think erroneously they are compliant. One of the major fears for retailers in this process has been that while the law has been developed by the Department of Health, it is to be enforced by local Trading Standards.

“The required changes can take time to implement so we are urging all shops to sort out their solution now”

The concern among retailers was that over-zealous Trading Standards officers would look to make a name for themselves early in the ban by bringing swift action against retailers. The maximum penalty for displaying tobacco products is two years’ imprisonment and/or a fine. However the Department of Health issued a statement last week to allay those fears. “The Trading Standards Institute has offered reassurance that local authority Trading Standards will help businesses comply with the legislation and will be unlikely to take immediate enforcement action if a business is unaware of the legislation or if the business has made a genuine attempt to cover the display,” it said.

However, while the main tobacco suppliers will have provided solutions for many retailers, there are still a large number of retailers who have been left to their own devices, and for those still to get themselves sorted, the message from the trade is - it’s time to get cracking.

“The required changes can take time to implement so we are urging all shops to sort out their solution now,” says NFRN president Martyn Brown.

Trade bodies such as NFRN and ACS are the best places for retailers with questions on compliance to start. These bodies have published detailed guides on what kind of solutions are OK when it comes to gantries, and perhaps more importantly how retailers can comply with the law as they go about their day-to-day business.

Gantry solutions can cost retailers anything from £50 for the most basic option - effectively a curtain on a rail - to around £1,650 for the most sophisticated options, which include overhead dispensers, pointed away from the customers and angled towards staff to enable them to see and get hold of the products quickly without having to open any doors.

At this stage, however, retailers’ focus will more than likely be on ensuring staff are well trained in how to deal with confused customers and serve them without breaching the law - and, of course, the more thorny issue of ranging.

When can a display be opened?

The key thing for staff to remember is that they cannot open the displays by more than 1.5 sq m in England, Wales or Northern Ireland or more than 1,000 sq cm in Scotland at any time. Aside from when serving a customer, there are a number of times when a retailer can open the display - for example, if a customer asks for information about a tobacco product, and for restocking, maintenance, cleaning and training. It is also OK to open the fixture to serve someone accompanied by a child.

It is important the fixture is only open while these activities are taking place and they should last only as long as necessary for that task. Should serving a customer interrupt a training session, then the fixture must be closed while serving the customer and reopened to resume the training.

The main no-nos are that retailers cannot open the gantry to serve non-tobacco products, so retailers should not store items such as lighters or cigarette papers, which are not subject to the ban, in with tobacco.

It is also crucial tobacco is not displayed to someone under 18 and all reasonable measures should be taken by the retailer to ensure this does not happen. Retailers must also ensure they only display one price list poster and use the correct font and text size on it.

The final issue for retailers as the market goes dark is ranging. Smokers tend to divide between the fiercely brand loyal who will leave a shop if their brand isn’t stocked, and those focused on price.

Rippleglen MD Mike Colley says in his stores that have already converted, the most frequently asked question is: “What is your cheapest cigarette?”

Wholesalers and suppliers will all have advice on ranging for retailers but Booker says just 34 SKUs deliver more than 52% of sales. Retailers need to think of stocking a core range that will deliver most sales and review lines that remain on shelf for more than four weeks.

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