Retailer warns Deposit Return Scheme could divert 30% of footfall

Kawal Patel, a Fed member and owner of Torridon Stores, has warned that the upcoming Deposit Return Scheme (DRS) could cause independent retailers to lose 20% to 30% of their footfall. Speaking at the Labour Party conference, Patel noted that customers may migrate to competitors who participate in the scheme, while non-participating shops miss out on the traffic generated by return points.

The DRS, scheduled for implementation in October 2027, will involve a 20p deposit on single-use PET plastic, aluminium, and steel drink containers between 150ml and 3l. Patel emphasized that small urban retailers with floor areas under 100sqm need a simple, non-burdensome voluntary registration process.

To ensure success, Patel called for clearer guidance and support from Exchange for Change, the organization managing the scheme. He also stressed the need for increased customer awareness and a transparent pricing system to prevent friction between retailers and shoppers regarding the additional deposit charges.