Retailers have been forced to reroute their home deliveries and limit access to local cash and carries, since the introduction of London’s ultra-low emission zone (ULEZ).
From 25 October, cars made before 2006 and vans made before 2015 driving within the north and south circular roads in London have to pay £12.50 per day.
Several London-based retailers told Better Retailing they are concerned ULEZ is having a negative effect on their businesses.
NFRN member Ravi Raveendran, owner of Colombo Mini-Mart in Hounslow, said: “The van I use to travel to cash and carries is out of date and doesn’t meet the specification. I can’t afford to buy a new one.”
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Raveendran has chosen to visit alternative cash and carries to avoid paying the charge. He said: “I have chosen to no longer visit HT Drinks, despite it being the one I visited the most.”
In response, a staff member from an HT Drinks depot within the zone said: “More members are transacting online, but, providing we maintain our range and prices, I don’t see the zone becoming an issue.”
Kay Patel, of Best-one is London, was told there was a nine-month waiting list to get a compliant new van a few months before the zone was introduced, so he bought a second-hand one.
He said: “The van I now use is half of the size of my old one. I am now making double the trips to the cash and carries. The van is smaller, so I am not able to fit the same amount of stock that I did before.”
Asked about the issues a van dealer in the city confirmed there had been a spike in interest in compliant vehicles since the charge came into effect.
Another retailer located on the border said he was considering reducing the area he delivers within due to the added costs he would have to face.
“I’ve considered reducing the radius of deliveries to save money and limit any unnecessary travel,” he said. “I haven’t made my mind up yet, but I’m doing some calculations to figure out how many times a week I would have to enter the zone and whether this would affect my profitability.”
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Vehicles heavier than 3.5 tonnes face fines up to £100 if they fail to comply.
Raveendran urged stores to register their non-compliant vehicle on the Transport for London (TfL) website to avoid being caught out.
“Once your vehicle is logged, TfL automatically takes the money, which means you don’t have to remember to pay it manually,” he said.
Diesel vehicles will be required to comply with Euro 6 standards, while petrol vehicles need only meet Euro 4 standards to avoid the charges.
Approximately, 35,000 vans and 100,000 cars are likely to be affected each day. Compliant vehicles will be eligible to move freely between the zone with no charge.
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