Currys boss Alex Baldock has criticised the government’s e-waste recycling reforms, which puts the retailer’s services business at risk.
The chief executive claims the new rules due to come into force in 2026 will “punish [businesses] like us who do the most recycling and at the same time, allow…some of the online-only retailers to get a free ride”.
In its last financial year, the electrical goods giant generated £676m in sales through its recycling and repairs services.
However, under the reform, Currys will no longer be able to charge to collect customers’ used white goods or TVs over 44″, which the business has used to help prop up its margins.
Subscribe to Retail Gazette for free
Sign up here to get the latest news straight into your inbox each morning
The government is also requesting large retailers roll out free-of-charge collections points to drop off electrical items in-store, which Currys already has and offers consumers a £5 trade-in voucher when they bring in their used goods.
Baldock claims the “misjudged proposals” are “counterproductive and will result in less recycling being done overall”.
“All this is another big cost burden being imposed on retailers at the same time as a record [business] rates rise, at the same time as other inflationary pressures on an already overburdened industry.”
Baldock said: “If everybody were to sign up or be made to sign up to recycling targets and face penalties if they don’t meet them, we’d solve the waste electrical recycling problem tomorrow and meet the government targets”.
The Currys chief executive was also vocal about the recent business rates hike and National Living Wage rises which will come into force in April.
“The biggest inflationary pressures are coming from government themselves with the ill-judged proposed rate hikes and the ill-judged recycling proposals, both of which will be counterproductive and will fuel inflation at the same time as reducing jobs and investment in the UK’s largest private sector employer.”
Click here to sign up to Retail Gazette‘s free daily email newsletter
