{"id":9228,"date":"2025-09-12T04:41:08","date_gmt":"2025-09-12T08:41:08","guid":{"rendered":"https:\/\/www.packagingindustrynews.com\/?p=9228"},"modified":"2025-09-12T04:41:08","modified_gmt":"2025-09-12T08:41:08","slug":"epr-shock-john-lewis-takes-22m-hit","status":"publish","type":"post","link":"https:\/\/www.packagingindustrynews.com\/?p=9228","title":{"rendered":"EPR shock: John Lewis takes \u00a322m hit"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div>\n<div class=\"article-image\">\n<figure class=\"article-image__container\">\n                                    <picture><source media=\"(min-width: 990px)\" srcset=\"https:\/\/www.packaging-gateway.com\/wp-content\/uploads\/sites\/16\/2025\/09\/J-Lewis-770x433.jpg\"\/><source media=\"(min-width: 430px)\" srcset=\"https:\/\/www.packaging-gateway.com\/wp-content\/uploads\/sites\/16\/2025\/09\/J-Lewis-940x528.jpg\"\/>\n                                    <\/picture><figcaption class=\"c-featured-image__description\">The levy, which holds producers responsible for their packaging\u2019s full lifecycle, shows sustainability rules are now a significant financial factor. \/ Credit: Glynsimages2013 via Shutterstock<\/figcaption><\/figure>\n<\/p><\/div>\n<p class=\"drop-cap\">The UK\u2019s retail giant John Lewis Partnership has revealed that the country\u2019s new Extended Producer Responsibility (EPR) packaging levy has contributed to a substantial first-half loss, highlighting the growing financial and operational impact of packaging regulations.<\/p>\n<p>With packaging now directly affecting profitability, the news offers a warning to global packaging and retail stakeholders: sustainability compliance is no longer optional\u2014it is a material cost driver.<\/p>\n<div class=\"in-article-premium-insights mobile-useragent-scalar\">\n<section class=\"gms-b2b-marketing\">\n<figure><img decoding=\"async\" src=\"https:\/\/www.packaging-gateway.com\/wp-content\/themes\/goodlife-wp-B2B\/assets\/images\/GMS-logo.svg\" alt=\"\"\/><\/figure>\n<h4> Discover B2B Marketing That Performs <\/h4>\n<p>\n\t\t\t\t\t\tCombine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.\n\t\t\t\t\t<\/p>\n<p><a href=\"https:\/\/www.globaldatamarketingsolutions.com\/\" class=\"gms-find-out-more\" target=\"_blank\"><br \/>\n\t\t\t\t\t\t\tFind out more <span><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"13\" height=\"9\" viewbox=\"0 0 13 9\" fill=\"none\"><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M11.685 4.5548L1.25586 4.5548L11.685 4.5548Z\" fill=\"white\"\/><path d=\"M11.685 4.5548L1.25586 4.5548\" stroke=\"white\" stroke-width=\"1.03145\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/><path d=\"M7.85693 0.918855L11.9827 4.5731L7.85693 8.33789\" stroke=\"white\" stroke-width=\"1.03145\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/><\/svg><\/span><\/a><\/p>\n<\/section>\n<\/div>\n<h2 class=\"wp-block-heading\" id=\"h-the-uk-epr-regime-key-facts\">The UK EPR regime: key facts<\/h2>\n<p>The UK\u2019s EPR scheme shifts full financial responsibility for household packaging waste onto the producers of packaging, including brand owners, importers, and retailers. Its main features include:<\/p>\n<ul class=\"wp-block-list\">\n<li><strong>Scope<\/strong>: Businesses handling more than 25 tonnes of packaging per year, or generating \u00a31m or more in turnover, must comply.<\/li>\n<li><strong>Obligations<\/strong>: Reporting the type, weight, and material of packaging supplied, registering with compliance schemes, and paying fees that cover collection, sorting, recycling, and treatment of packaging waste.<\/li>\n<li><strong>Fee Modulation<\/strong>: Charges vary depending on recyclability, material type, and format, penalising less sustainable packaging while incentivising lighter, reusable, or mono-material designs.<\/li>\n<li><strong>Implementation<\/strong>: Fee invoices for large producers commence in October 2025, although many companies, including John Lewis, have already booked costs in advance.<\/li>\n<\/ul>\n<p>This scheme is part of a broader UK push to meet environmental targets and reduce packaging waste, aligning with the circular economy approach.<\/p>\n<h2 class=\"wp-block-heading\" id=\"h-john-lewis-s-financial-hit\">John Lewis\u2019s financial hit<\/h2>\n<p>John Lewis reported a half-year loss of \u00a334m before tax and exceptional items, compared with a \u00a35m loss in the previous year. Excluding exceptional items, losses widened to \u00a388m, partly due to technology upgrades and other operational investments.<\/p>\n<p>Crucially, the company attributed \u00a322m of its losses to the new EPR packaging levy. Waitrose, the supermarket arm of the partnership, bore a significant portion of the cost, given the volume of packaged products it supplies.<\/p>\n<p>Overall sales grew 4% to \u00a36.2 billion, demonstrating that revenue growth did not offset the regulatory cost burden.<\/p>\n<p>John Lewis\u2019s chair, Jason Tarry, emphasised that the retailer remains confident about full-year profit growth but warned of a challenging macroeconomic environment.<\/p>\n<h2 class=\"wp-block-heading\" id=\"h-implications-for-the-packaging-industry\">Implications for the packaging industry<\/h2>\n<p>John Lewis\u2019s experience underscores the broader lessons for packaging stakeholders:<\/p>\n<ol start=\"1\" class=\"wp-block-list\">\n<li><strong>Cost transparency is critical<\/strong><br \/>Detailed knowledge of packaging materials, weights, and recyclability is essential. Companies without accurate data may face unexpected regulatory costs.<\/li>\n<li><strong>Sustainable design is a competitive advantage<\/strong><br \/>Packaging that is easy to recycle, lightweight, or reusable will attract lower fees, while complex or mixed materials could significantly increase costs.<\/li>\n<li><strong>Supply chains must adapt<\/strong><br \/>Upstream and downstream partners need to collaborate on materials and packaging formats to optimise cost and compliance.<\/li>\n<li><strong>Consumer pricing pressures<\/strong><br \/>Passing increased packaging costs to consumers may be limited by price sensitivity, particularly in highly competitive retail sectors.<\/li>\n<li><strong>Regulatory complexity<\/strong><br \/>Multiple reporting requirements, modulated fees, and evolving definitions of recyclable packaging create compliance risk.<\/li>\n<li><strong>Lifecycle considerations<\/strong><br \/>Shifts to cheaper materials for regulatory reasons must be balanced against environmental impact, ensuring one problem isn\u2019t swapped for another.<\/li>\n<\/ol>\n<h2 class=\"wp-block-heading\" id=\"h-strategic-takeaways\">Strategic takeaways<\/h2>\n<p>For packaging producers, converters, and retailers, the John Lewis case highlights actionable steps:<\/p>\n<ul class=\"wp-block-list\">\n<li>Audit packaging portfolios for recyclability, material type, and weight.<\/li>\n<li>Engage suppliers and supply chain partners to improve sustainability.<\/li>\n<li>Explore design innovations, such as mono-material formats, lighter packaging, or reusable options.<\/li>\n<li>Model cost impacts under different regulatory scenarios to understand financial exposure.<\/li>\n<li>Communicate sustainability achievements transparently to leverage brand value.<\/li>\n<\/ul>\n<h2 class=\"wp-block-heading\" id=\"h-global-perspective\">Global perspective<\/h2>\n<p>While this story centres on the UK, similar EPR schemes exist globally:<\/p>\n<ul class=\"wp-block-list\">\n<li><strong>EU<\/strong>: Longstanding packaging EPR rules, with continued modulation and enforcement under the Circular Economy Package.<\/li>\n<li><strong>Asia<\/strong>: Countries like Japan, South Korea, and China impose producer responsibility schemes with varying fees and recycling targets.<\/li>\n<li><strong>North America<\/strong>: Some Canadian provinces and U.S. states are implementing EPR-style regulations.<\/li>\n<\/ul>\n<p>Global firms must anticipate diverse regulatory environments and adapt packaging strategies accordingly.<\/p>\n<h2 class=\"wp-block-heading\" id=\"h-looking-ahead\">Looking ahead<\/h2>\n<p>John Lewis\u2019s \u00a322m hit from the UK EPR packaging levy is a cautionary tale for the retail and packaging industries. Packaging is no longer just a functional or marketing consideration\u2014it is a financial and regulatory one.<\/p>\n<p>Businesses that proactively adapt through sustainable design, accurate data management, and supply chain collaboration will gain competitive advantage, while those that delay may face escalating costs and compliance challenges.<\/p>\n<p><!-- Newsletter banner start --><\/p>\n<p><!-- <link rel=\"stylesheet\" href=\"\"> --><\/p>\n<div class=\"grid-container\">\n<section class=\"gdm-newsletter-banner__container\">\n<div class=\"grid-x gdm-newsletter-banner__wrapper-container gdm-newsletter-banner__wrapper-container--article\">\n<div class=\"cell large-9 gdm-newsletter-banner-info__wrapper\">\n<div class=\"gdm-newsletter-banner-logo__container\">\n                    <img decoding=\"async\" src=\"https:\/\/www.packaging-gateway.com\/wp-content\/themes\/goodlife-wp-B2B\/assets\/images\/newsletter-new.svg\" alt=\"Email newsletter icon\"\/>\n                <\/div>\n<p><h3 class=\"gdm-newsletter-banner__heading wp-noreslt\">Sign up for our daily news round-up!<\/h3>\n<h3 class=\"gdm-newsletter-banner__sub-heading\">Give your business an edge with our leading industry insights.<\/h3>\n<\/p><\/div>\n<\/p><\/div>\n<\/section>\n<\/div>\n<p><!-- Newsletter banner end --><\/p>\n<div class=\"author-bio\">\n<h2>Packaging Gateway Excellence Awards &#8211; The Benefits of Entering<\/h2>\n<p style=\"margin-bottom: 20px;\">Gain the recognition you deserve! 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Don\u2019t miss your chance to stand out\u2014submit your entry today!<\/p>\n<p><a href=\"https:\/\/www.packaging-gateway.com\/excellence-awards\/?utm_source=verdict_news&amp;utm_medium=footer_cta&amp;utm_campaign=EA_2025_news&amp;utm_id=exawards2025\" class=\"excellence-awards-link\"><strong style=\"font-size: 20px;\">Nominate Now<\/strong><\/a><\/p><\/div>\n<footer class=\"article-footer\">\n                                <!-- article-actions start --><\/p>\n<p><!-- .gdm-article-actions -->                                <!-- article-actions end --><br \/>\n                            <\/footer>\n<\/p><\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.packaging-gateway.com\/news\/epr-shock-john-lewis-takes-22m-hit\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The levy, which holds producers responsible for their packaging\u2019s full lifecycle, shows sustainability rules are now a significant financial factor. \/ Credit: Glynsimages2013 via Shutterstock The UK\u2019s retail giant John Lewis Partnership has revealed that the country\u2019s new Extended Producer Responsibility (EPR) packaging levy has contributed to a substantial first-half loss, highlighting the growing financial [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":9229,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[165],"tags":[2611],"class_list":["post-9228","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-packaging-news","tag-epr-shock-john-lewis-takes-22m-hit"],"_links":{"self":[{"href":"https:\/\/www.packagingindustrynews.com\/index.php?rest_route=\/wp\/v2\/posts\/9228","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.packagingindustrynews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.packagingindustrynews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.packagingindustrynews.com\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.packagingindustrynews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9228"}],"version-history":[{"count":0,"href":"https:\/\/www.packagingindustrynews.com\/index.php?rest_route=\/wp\/v2\/posts\/9228\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.packagingindustrynews.com\/index.php?rest_route=\/wp\/v2\/media\/9229"}],"wp:attachment":[{"href":"https:\/\/www.packagingindustrynews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9228"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.packagingindustrynews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9228"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.packagingindustrynews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9228"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}