Fed Conference Panel Tells members: “Don’t Risk Sales” over DRS.

A panel of DRS experts including experienced retailers from the Fed told members to prepare for the Deposit Return Scheme (DRS) for recycling cans and bottles when it goes live in October 2027 urging them not to risk sales.

The panel included Kate McFerran, Corporate Director of Exchange for Change, the Deposit Management Organisation (DMO) which will administer DRS; former Fed National President and Lanarkshire retailer, Mo Razzaq; Southeast London retailer, Kaual Patel, who has already embraced DRS by installing a return point and Adam Wylie, Managing Director of Smiths News Recycle.

The panel was chaired by the Fed’s Business Development Manager, Chris Turford, who said that the discussion was designed as an educational opportunity which would help retailers prepare based on the unique circumstances of their store.

However, the Fed team made clear in an introductory sting video that DRS could represent one of the most seismic changes for the small independent retail space, alongside major shifts in recent decades like the introduction of the National Lottery, the Covid-19 lockdown and regulation which has accelerated the shift away from tobacco.

The Fed team stated that “DRS is an opportunity – but DRS also stands for a warning: ‘Don’t Risk Sales’”.

Kaual Patel, who owns Torridon Stores in Lewisham in London said: “DRS is a reality. It is happening. The last thing people should do is ignore it. We need to get it to work for your business and all Fed members need to pay attention, otherwise our shops will lose sales and footfall to multiples and big supermarkets.”

Kate McFerran from Exchange for Change mentioned that as the body administering the scheme, she was keen to ensure that DRS “was explained as clearly as possible for retailers and we do what we can together to help retailers to prepare. We have also recently announced payments for retailers which will help them manage their costs.”

Ms McFerran gave detail about the consultation on the Retail Handling Fee that the Fed had participated in, which meant retailers would be paid 5 pence for each bottle or can returned via a Reverse Vending Machine up to 220,000 per year and 3p for those returned in a manual return point, as well as £6,000 grants – paid over three years – for those who installed and RVM.

Mo Razzaq, who is a longstanding advocate of DRS reminded the audience that “the Fed had supported the initiative from the very beginning, whilst others have doubted DRS, we have said it can play an important role in driving up recycling rates of bottles and cans from 70% at the moment to the Exchange for Change’s target of 90%, helping the environment, but also boosting footfall bringing customers back into our stores”.

Mr Razzaq also spoke about his trial operation of an RVM at his business in Blantyre near Glasgow and explained to members that those with return points would need to think carefully about factors like machine location, cleanliness and storage of returned items.

Adam Wylie from Smiths News Recycling explained that his company was “keen to support stores by using its logistics capabilities from the news industry and elsewhere to collect bottles and cans and would be able to do that throughout Great Britain”. Mr Wylie also stated Smiths would support the scheme through its own manual return process and was working with Exchange for Change and the Fed as well to support retailers make a success of DRS and drive up recycling rates.

Kate McFerran answered a series of logistical queries from the panel and others and promised to work closely with the Fed in the run up to next October’s DRS launch and beyond. Ms McFerran said: “We are welcoming input from the Fed and others, as well as looking at evidence from countries like the Republic of Ireland – where DRS is helping draw customers back into their stores and restore them as focal points of their communities.”

Chris Turford stated afterwards: “I would like to thank everyone on the panel for a very positive discussion. The Fed and Exchange for Change are here to help retailers make the right decision for them. If you have any questions, do please contact our Political Engagement Coordinator on Douglas.oliver@nfrn.org.uk.”

Independent retailers react with anger over deferred Telegraph profit margins

The Fed has voiced its anger and disappointment over Telegraph Media Group’s (TMG) decision to defer profit margins once again as part of increases to the cover prices of its titles.

From Monday, June 29, all Telegraph titles will increase in price by 50p in the UK and by 50 cents in the Republic of Ireland.  However, despite this, the adjusted percentage margin for retailers is not applied at the point of sale and is instead deferred until December 2026.

Commenting, the Fed’s National President Hemanshu Patel said: “It is very disappointing that TMG has again chosen to defer the effective payment of retailer margins to its independent retail partners for a further six months.

“Retailers do not operate on the basis of cash through the till; like all businesses, we work on percentage margins and return on investment, and it is those margins that determine whether a category remains commercially viable.

“In reality, there is no genuine uplift in margin at the point of sale. Instead, what is being applied is a temporary reduction in retailer return, with the margin subsequently reverted after six months. This has been repeated over a number of years, meaning that on an annualised basis retailers are receiving less than the stated percentage margin.

“Over time, what was once an industry norm has effectively become a deferred margin structure. However, repeated use of this mechanism erodes trust and creates uncertainty for independent retailers, particularly when cover prices increase immediately but margin benefits do not.

“TMG continues to justify this position by linking it to subscription renewals. However, retailers have previously been told that corporate circumstances restricted movement on this issue. Those circumstances have now changed, and that argument no longer carries weight.

“The big question is why TMG cannot pay retailers in advance for subscription sales. After all, they have already taken the money from the customer up front.”

TMG has agreed to a meeting with Fed representatives to discuss the matter further and to attempt to find some common ground.

 

Allwyn launches the £5 Beat The Chasers National Lottery Scratchcard with top prizes of £1.5 million

Fans of the hit ITV quiz show Beat The Chasers can now put their luck to the test, as Allwyn launches a new National Lottery Scratchcard inspired by the format.

The £5 Beat The Chasers Scratchcard is now in retail. There are five top prizes of £1.5 million, and the overall odds of winning are 1 in 3.52.

The Beat The Chasers Scratchcard, licensed by ITV Studios, brings the programme’s pace and intensity to The National Lottery. There are three themed games: Cash Builder, which matches ‘answers’ for prizes. The Offer, which lets players ‘predict’ the Chaser’s offer. And Beat The Chasers, where players need to outscore the Chaser for a win.

Allwyn will support the launch through in-store and marketing activity designed to maximise visibility and drive engagement, including retail Point of Sale with a full asset takeover in July, and a Scratchcard dispenser flash and arrow in August. Beat The Chasers marks Allwyn’s second exciting licensed Scratchcard in 2026, following February’s £5 Deal or No Deal Scratchcard, which engaged players and retail.

Steve Parkinson, Marketing Director at Allwyn, said: “The Beat The Chasers programme has built a huge and loyal following across the UK, making it a natural addition to our Scratchcard line-up. With our Beat The Chasers Scratchcard, we’ve created a game that captures the competitive edge and quick-fire excitement of the show in a format that’s instantly accessible to players.

“We saw fantastic engagement from both players and retailers with the launch of our Deal or No Deal Scratchcard earlier this year, and we’re confident Beat The Chasers will continue that momentum. And, as always, every time someone plays a National Lottery game, they help contribute to the £33 million raised every week for UK Good Causes.”

Steve Watling, SVP Gaming – Zoo55, ITV Studios, commented: Beat The Chasers has been a hit international spin off show and demonstrates the success and popularity of the chaser mechanic. This is the first time the format has been adapted for a game, and this Allwyn scratchcard features all the main elements from the show format. We look forward to seeing this in retail.”

About Allwyn and The National Lottery   

Allwyn operates The National Lottery® under licence, raising vital funds that help communities thrive across the UK. Every ticket makes a difference – from grassroots sport and local arts to heritage and community initiatives. Distribution of funds is managed by independent bodies.

  • Players of The National Lottery raise around £33 million every week for National Lottery-funded projects. Since its launch in 1994, more than £53 billion has been raised, funding over 680,000 Good Cause projects in every part of the UK. In every postcode district, most people will have benefited from a National Lottery-funded project at some point.
  • The National Lottery has awarded players over £103 billion in prize money, creating more than 8,000 millionaires.
  • Learn more about Allwyn and The National Lottery at www.allwyn.co.uk and www.national-lottery.co.uk. · Explore projects funded in your area at www.lotterygoodcauses.org.uk.
  • Players must be 18 or over. Please play responsibly.
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