Next year’s promotions ban on high fat, salt and sugar (HFSS) lines will hit supplier and wholesaler promotion plans, even for smaller exempt stores, according to IRI’s HFSS strategic consultant, Joe Harriman.
From October 2022, stores over 2,000sq ft will no longer be able to display ‘unhealthy’ goods at checkouts, gondola ends and store entrances.
Harriman told Better Retailing: “A question for the stores above and below 2,000sq ft is how to manage two different promotional plans. Some will feel it’s worth it to continue those types of promotions, some won’t.”
Research by IRI released earlier this month found 26% of display space in multiples will need to be “vacated” after the ban.
Harriman said the figure was “a good proxy” for convenience stores, where he said £585m in sales would be at risk. “Some manufacturers will find themselves needing to justify shelf space, others could be well placed to take advantage of the premium space opportunity that will become available to non-HFSS brands,” said Harriman.”
The ability to continue to display HFSS-hit lines anywhere in store was described as an “opportunity” for stores below 2,000sq ft.
However, larger convenience stores were advised to start identifying potential replacement lines. “Additional categories we know to be quite incremental when on display are coffee, canned tuna, that type of thing,” Harriman added.
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