The countdown to the implementation of DRS in Scotland is now well underway, yet ‘only one in five’ independent retailers has plans in place.
By Antony Begley
With October 2027 the scheduled date for the launch of a more-or-less UK-wide Deposit Return Scheme (DRS), a survey by the Association of Convenience Stores (ACS) has revealed that just one in five independent retailers in the UK has a plan for what they’re going to do when the scheme is introduced. Worse, more than half of the retailers surveyed aren’t even aware of the impending DRS.
From October 2027, government regulations will require a redeemable deposit to be applied to every single-use drinks bottle or can sold in England, Scotland and Northern Ireland. Consumers will get the deposit back when they return the containers for recycling.
The research findings, from the ACS Voice of Local Shops Survey of 1,100 independent and symbol group retailers, show that more than half of those surveyed (53%) are not aware of the DRS at all, with just over one in four (27%) aware of the scheme but currently with no plan for how they’re going to be part of it.
Of those who have a plan for their business, 12% said they plan to take back containers manually, 5% intend to invest in a reverse vending machine to manage returns, and 3% plan to seek an exemption from the scheme.
- 53% not aware of the Deposit Return Scheme at all.
- 27% aware of the scheme but currently with no plan for how they’re going to be part of it.
- Of those who have a plan, 12% said they plan to take back containers manually, 5% intend to invest in a reverse vending machine and 3% plan to seek an exemption from the scheme.
Firm timeline
Outgoing ACS Chief Executive James Lowman said: “Deposit Return Schemes have been talked about for over a decade, with a lot of noise and false starts that have understandably left retailers exhausted by the concept, let alone the detail.
“We now have a firm timeline for the introduction of the scheme, so retailers need to start thinking about their plans for how they’re going to be part of the scheme when it’s introduced in October 2027, whether that be through hosting a reverse vending machine, taking back containers manually, or applying for an exemption.
“We are committed to working with the Deposit Management Organisation (DMO) to ensure that convenience retailers are ready for the introduction of DRS across the UK.”
The DMO referred to by Lowman is the UK DMO, the not-for-profit, business-led body appointed by government to develop the necessary infrastructure and manage the scheme in the most effective and efficient way.
Rebecca Oliver-Mooney, Director of Commercial at Co-op and UK DMO Board Director representing Convenience Retail, said: “Convenience retailers will be essential in making DRS a success, providing local neighbourhood return points that will make returns easy for consumers and help us to cut waste and increase recycling.
“As a DMO, we truly recognise the unique challenges for convenience and that’s why we’ve been working really closely with the ACS and other convenience groups to ensure that their views and experience of the sector shape our work as we develop the scheme.”
Oliver-Mooney cited the concerning research findings as proof of “the importance of helping convenience operators get the information they need to make informed decisions”.
The DMO appears to have made a much more promising start than Circularity Scotland did when it was appointed to manage the doomed Scottish DRS and is committed to working closer with all stakeholders in future.
“As our work to build the scheme continues, we’ll be able to provide much more detail throughout the first half of 2026,” says Oliver-Mooney. “This will include hosting a series of free webinars on how DRS will work as well as regular newsletters and specific updates for the convenience sector.
“We’re focused on building a scheme that allows for return points in space-constrained environments and which reflects the operational and financial realities for much of the sector.
“As a DMO, we truly recognise the unique challenges for convenience and that’s why we’ve been working really closely with the Scottish Grocers’ Federation and ACS among other trade associations to ensure that their views and experience of the sector really shape our work as we develop the scheme.
“And as someone who works for a convenience retailer as well as sitting on the DMO Board, I know first-hand the entrepreneurial spirit of the sector and that operators will have many questions about the scheme. While we aren’t able to answer all of these now, we want to provide as much clarity as we can, as soon as we can.
“Now is the time to start considering what this means for your business, and to begin factoring it into your operational and financial planning.”
The DMO says that, while details are still being finalised, it is now actively looking to help convenience retailers begin planning for the launch of the scheme by outlining some key considerations and a timeline for when further information will be available:
- The DMO will publish detailed sector-specific guidance for the independent sector in early summer 2026, setting out what support is available and practical arrangements to help convenience retailers take part in DRS in a way that works for them and their customers.
- The DRS will cover drinks containers made from PET plastic, steel and aluminium between 150ml and three litres
- Retailers will be compensated through a handling payment per item to cover the costs retailers incur through things like additional staff requirements, the space taken up in store, and potential investment in kit or machinery. This will be a handling payment per item that is collected in store. The DMO is currently gathering information and will be consulting with business in the new year to help ensure this is as fair as possible.
- Not every retailer will need to take part. Urban areas will be exempt from hosting a return point if they have a retail space of less than 100m2. Retailers will also be able to apply for an exemption if their business is close to another return point, or it is not possible to host a return point due to the location, layout, size, design or construction of their store.
- Voluntary participation is welcomed. Even if they are exempt, retailers can apply to be a voluntary return point to help increase footfall and provide a vital resource for local communities.
- UK DMO will continue to engage the sector, through trade associations, direct consultation, events and the media and encourages everyone to visit the website at ukdmo.co.uk and sign up to the regular newsletter to receive the latest updates.
