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09 May 2008

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Cigarette display ban could cost retailers £252m

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A ban on tobacco displays in shops could cost the convenience retail industry £252m.

Booker Premier3
Tobacco display

That's the view of the Association of Convenience Stores (ACS), which has included the estimate in a submission to the Department of Health on the proposed ban, known in the trade as "going dark".

It says the cash would be needed for new equipment to safely remove tobacco from customers' view.

The minimum a single store could expect to pay is £1,850, rising to as much as £4,985 depending on the detailed requirements of any legislation.

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.”

The 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, claims the trade body.

The Department of Health will shortly be releasing a consultation on the next steps in tobacco control.

The consultation forms part of the wider Cancer Strategy and Ministers have already indicated that display bans will feature in their thinking.

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.”

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