Chocolate theft surge tied to illegal cigarette trade, retailers say

Chocolate stolen from shops is being resold alongside illegal cigarettes and vapes in pop-up shops and mini-marts on British high streets, retailers have said.

The flow of stolen goods into these shops "undermines" legitimate retailers and "how safe people feel on their high streets and coming into shops", said the Association of Convenience Stores (ACS), which is holding a national conference in Birmingham.

Some retailers said the sale of illicit tobacco products was damaging their businesses and communities and, with minimal support from police, trading standards and the government, they they feel "on their own in a sinking boat" .

The government said it would not let organised crime groups endanger high streets and that it was cracking down on illicit cigarette sales, which some parents say include selling single cigarettes to their children.

In February, the BBC reported how surging chocolate theft was often being resold in illicit markets.

Retailers have said this includes pop-up shops and mini markets, with stolen confectionery sold alongside huge volumes of illegal cigarettes, tobacco and vapes.

"I think it's really visible how much that is happening," said Edward Woodall, ACS chief executive.

"It's openly there on the high street. I think the frustration for retailers is no-one's taking any action against those stores."

Paul Cheema, who owns Malcolm's Stores in Coventry, said these shops often pop up and "surround themselves with plastered windows so you can't see through - they have a table and a chair outside for a spotter to watch what's going on".

He and and other retailers told the BBC the boom in illicit tobacco sales from these outlets was undercutting legal, UK duty-compliant tobacco sales and associated spend in legitimate businesses.

"I have to buy mine through an authorised wholesaler," Cheema said. "Each one of them tobacco products that are in my store is registered to my store.

"When you've got a shop that's selling 50 grams of tobacco for the best part £6, where do you think that shopper's going to go? Do you think they're going to buy it from me [for about £40] or do you reckon they're going to go over there?

"It's massive impact. We don't sell hardly any tobacco-related products here now, whatsoever. Full stop."

Cheema also said he was concerned by the impact these stores were having on local communities.

He said he had had local parents come to him, asking for help "complaining because their children are getting single cigarettes at 50 pence".

He said he had complained to Coventry City Council, but that it was not doing anything about the problem.

The local authority told the BBC it was "a national problem", and that Coventry was "not unique in its challenges", but added it was committed to addressing "this growing challenge".

It said trading standards officers "actively engage with shopkeepers who report problems" and that the council was involved in ongoing discussions with Cheema.

"We have taken enforcement action previously, at this site and others operating illegally around the city and will continue to do so," a spokesperson added.

"All towns and cities are experiencing the same issues with the illicit tobacco and vape trade," the council added in a statement.

"The problem is extensive, with many shops choosing to engage in this illegal activity.

"The demand for such products is incredibly high, which presents a significant challenge for enforcement agencies, and we have a high number of shops under investigation with limited resource."

At the retail conference in Birmingham, shopkeepers from around Britain gathered to discuss the abuse, theft and illicit trade they face every day.

One, Natalie Fullerton said responsible retailers reported them, but "there doesn't seem to be any enforcement".

She said despite local councils issuing emergency closure orders, the pop-up stores were soon open again under different owners.

Dee Sedani said he and fellow convenience store owners felt as if the government had left them on their own, in "the middle of the ocean - sinking".

John Herriman, chief executive at the Chartered Trading Standards Institute, said: "Trading standards officers take the threat posed by illegitimate businesses selling illegal goods extremely seriously.

"However, local authority trading standards services have faced damaging funding cuts of up to 50% over the past decade, while criminal operators continue to access vast and seemingly inexhaustible supplies of illegal products."

He called on the government to "urgently bring together and properly invest in enforcement agencies" and give them the powers and resources to "tackle what is a widespread and growing national problem".

In response, a government spokesperson said: "We will not let organised crime groups endanger our high streets and are cracking down on illicit cigarette sales.

"Our landmark Tobacco and Vapes Bill will give authorities the power to issue on the spot fines and enable a new licensing scheme for retailers.

"This is backed by £30m per year to tackle the illicit and underage sale of tobacco and vapes, and support agencies including Trading Standards, Border Force and HMRC."

A spokesperson for the National Police Chiefs' Council said forces recognised "the concerns of retailers and communities" around the issue.

"At the end of last year, we saw the largest operation of its kind, whereby more than 2,700 premises were visited, 924 individuals arrested, more than £10.7m of suspected criminal proceeds seized and more than £2.7m worth of illicit commodities destroyed," the council said.

"These figures include the removal of 79kg of cannabis from our streets, 111,000 harmful, illegal vapes, 4.5m illicit cigarettes and 622kg of illicit tobacco - equalling £3.5m of duty taxes evaded."

The organisation urged businesses to report information to their local force, adding that the more information that was available, the better equipped officers were in responding to concerns.

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