Retailers will feel the impact of the plastic packaging tax (PPT) increase that is set to occur this spring, which is why they need to think outside the box to mitigate this extra expense.
From April 1st 2025, the new rate of PPT will go up to £223.69 per tonne and will apply to plastic packaging that has less than 30 per cent of recycled plastic.
Prior to this, it was £217.85 per tonne from April 1st 2024, and £210.82 per tonne between April 2023 and April 2024. This levy increase is being introduced to encourage retailers to use manufacturers that have a higher content of recycled plastic in their packaging.
This additional cost may hit some retailers hard, so stores might need to raise their own prices to counteract these extra charges.
Helen Dickinson, chief executive of the British Retail Consortium (BRC), said: “With retailers’ tight margins leaving little scope to absorb more costs, many are warning of price rises and job cuts in the coming months.”
It is expected the new packaging levy will cost retailers a total of £7 billion, so store managers might consider making some job cuts so they do not fall into debt this year.
They also need to make their store as attractive as possible to ensure many customers come inside and peruse the shelves and rails.
Store maintenance services also ensure the shop will be in tip top condition, as this gives credibility to the brand. It also makes the retail unit look aesthetically pleasing and appealing to the customer.
Examples of these services include glass polishing, French polishing, shopfitting, escalator maintenance, decorating, and glazing repairs.
These changes will encourage shoppers to part with their money more, particularly if consumer confidence in the economy continues to fall.