# UK Deposit Return Scheme retail concerns

> Live situation record from CLSTR: https://clstr.news/situations/uk-deposit-return-scheme-retail-concerns
> Updated: 2026-10-14T07:47:12.000Z. Sources: 5. Developments: 2.

In the United Kingdom, retail stakeholders have raised concerns regarding the upcoming Deposit Return Scheme (DRS) scheduled for October 2027. Kawal Patel, a Fed member and owner of Torridon Stores, warned at the Labour Party conference that the scheme could cause independent retailers to lose between 20% and 30% of their footfall. 

Patel noted that customers might migrate to competitors who participate in the scheme, leaving non-participating shops without the traffic generated by return points. The DRS will involve a 20p deposit on single-use PET plastic, aluminium, and steel drink containers. To mitigate impact, Patel called for a simple, non-burdensome voluntary registration process for small urban retailers with floor areas under 100sqm, alongside clearer guidance from the managing organization, Exchange for Change.

## Timeline

### 2026-10-14: Small retailers adapt to deposit return systems

Small retailers face logistical hurdles with deposit return systems, often opting for manual collection over automation to save space and costs, according to industry data.

2 sources. https://clstr.news/cluster/small-retailers-adapt-to-deposit-return-systems

### 2026-10-08: Retailer warns Deposit Return Scheme could divert 30% of footfall

Retailer Kawal Patel warns that the UK's 2027 Deposit Return Scheme could divert up to 30% of footfall away from independent shops that do not participate.

3 sources. https://clstr.news/cluster/retailer-warns-deposit-return-scheme-could-divert-30-of-footfall

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Cite as: UK Deposit Return Scheme retail concerns. CLSTR, https://clstr.news/situations/uk-deposit-return-scheme-retail-concerns