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Tobacco display ban could cost retailers £252 million
Archived article dated Saturday May 10th 2008
The ACS (Association of Convenience Stores) has submitted to the Department of Health detailed estimates of the potential costs to a convenience store retailer of implementing a tobacco display ban.
It is estimated that the new equipment required to safely remove tobacco from customers view could cost the convenience industry as much as £252 million. The minimum a single store could expect to pay is £1,850 but this could rise to as much as £4,985 depending on the detailed requirements in any regulation.
ACS Chief Executive James Lowman said: “What we have found is that changing tobacco displays will bring significant and damaging costs to convenience stores. As the picture becomes clearer about what the likely harm to business will be, we have still not seen the convincing evidence that a ban would have the desired effect on underage smoking. If the costs are high and the benefits not clear then the Government should not press ahead.
“We have looked at international comparisons and worked with members to arrive at an analysis of costs, although we have only considered the costs of removing the equipment and replacing it. If you consider the cost of upheaval and loss of trade during any changeover the actual cost may be much more. Some of the big issues we cannot yet cost accurately include the shortage of equipment, materials and labour to change tens of thousands of shops, as well as the likely disruption to trade during any changeover.”
ACS has also called upon the Department of Health to produce evidence that would suggest a display ban is effective in reducing smoking rates among young people. Evidence ACS has collated from other countries, including Iceland and Canadian states, is not conclusive and in some cases even shows an increase in the smoking rates among young people.
The Department of Health will shortly be releasing a consultation on the next steps in tobacco control. The consultation forms part if the wider Cancer Strategy and Ministers have already indicated that display bans will feature in their thinking.
Mr Lowman continued: 'This Government has to contemplate the possibility that the display ban is a bad idea that won't have the desired effect. Rather than causing this level of disruption they could usefully target their attention on measures that will make a real difference. What we have made clear is that we believe that targeting proper interventions at bootleggers who sell tobacco on the streets and making it illegal to buy tobacco and supply it to an under 18 are both far more likely to change behaviour.”
Tagged as: acs | retail | retailing
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