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Retail by Email - Issue 484 - HFSS

We are back after a Halloween break and reviewing the HFSS landing in the English stores, despite rumours of a potential cancellation.

The cancellation was rumoured to be by then Prime Minister Liz Truss, who managed 44 days before being ushered out of the exit door.

Whilst multibuy (ban on) was postponed for a year, the rest of the HFSS guidelines came in. Meaning Chocolate and other high fat/salt/sugar based products are no longer allowed on gondola ends, central aisle space, back aisle space, ladder racks, or in the store foyer.

However, they can be displayed in other areas of the store, and if it’s 4 shippers together (forming an island) that is permissible. In addition, store foyers can be used for HFSS products, assuming the display is far enough from the main doors.

But this calculation is done based on the store size itself. So a larger store may well still be able to use HFSS products to trade the foyer, but others may not.

It’s never easy in retail, and the rules are near crazy. Especially given then general challenges with the cost of living, and that conversely, they appear to indirectly benefit the discounters significantly.

Aldi and Lidl don’t have traditional ends after all and use the middle of the store for the special buys anyway. So they escape the rule changes almost entirely by virtue of their store being laid out in a different way.

What we have seen is wholesale compliance by the retailers (by and large) with ends changing and products on promotion that are impacted. Traded from bays in aisles, as we had covered before.

Bakery items are performing well though, a real rise in secondary space here given the freedom from restrictions that this category benefits from. No in store produced line is part of the restrictions due to the difficulty in assessing these products for their nutritional score (NPM).

Aside from Bakery benefitting from the changes. We have already covered the various ways in which retailers were adapting. From in aisle bays to shippers sited in aisles (like you’d see at Christmas).

There hasn’t been a great deal else to look at, restrictions are just that, but they do verge on lunacy in reality.

Alcohol causes more issues for families and people in general, given the long term health effects of drinking. It seems almost perverse that Cigarettes are sold in plain packaging from behind a curtain (effectively). Chocolate, Crisps, Pizza and the rest are also hidden from view when on promotions.

Yet Beer, Wine, Spirits, Lager et al are given a free run of things and now, with predictable results. Booze is the greatest beneficiary from these regulations because there is no restriction on the sale of Beer/Wines/Spirits etc.

(Scotland have a price restriction, of course, but from a trade/space perspective).

Which has lead to this scene from stores up and down the land.

Also notable is the space that is used around the store for stacks and pallets that were formerly not used for HFSS based product.

These locations are legal as they are not forming part of a specific aisle (back, or central) and are made up of pallets, or shippers.

It never gets easier for retailers and whilst there are lots of pallets of Beer and Chocolate around at the moment.

Dry January and the health focus will see a lot of space to be filled and not with Beer, Spirits or Chocolate, either.