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.”