Retail Licences – What to Know Before You Start Your Journey

The retail industry is a challenging space for any business to be in. Customer demand constantly evolves, and increasing competition puts retailers under pressure to find innovative solutions to maintain profits and improve their shop fronts. 

But, before the work can truly begin, understanding which retail licence the business needs is crucial. 

Retail licencing requirements are a complex web of regulatory legislation, but operating a retail business without the proper licenses can lead to serious consequences. 

Avoid legal action and costly fines to maintain consistent profits and secure business sustainability with Retail Estate’s expert guide to retail licences…

What is a Retail License? 

A retail license is a legal document that grants a business the right to sell goods or services directly to the public. It is typically issued by a local government authority, such as a city or county, and is required for businesses operating in specific retail sectors.    

Purpose of Retail Licenses

• Legal Compliance: Operating a retail business without a license can lead to fines, legal action, and even business closure.   
• Consumer Protection: Retail licenses help ensure businesses adhere to safety standards, ethical practices, and fair trade regulations, protecting consumers.
• Revenue Generation: License fees collected by local governments contribute to funding public services and infrastructure.
• Industry Regulation: Retail licenses allow governments to monitor and regulate the retail industry, ensuring fair competition and preventing illegal activities.   

Different types of retail licenses 

The retail industry is diverse and encompasses many types of businesses, services, and activities. 

To maintain consumer protection and allow the government to ensure proper regulation across all of these companies, each type of license is tailored to specific products, services, or activities to ensure appropriate regulation and consumer protection. 

For example, businesses selling food items must adhere to food safety and hygiene standards, necessitating a separate food license, while the pharmaceutical industry may have specific pharmacy regulations outlined in their license. 

The specific types of retail licenses in the UK can vary depending on the location – take a look at several of the most common types:   

1. Alcohol Licenses

• Premises License: Allows the sale and consumption of alcohol on the premises.
• Club Premises Certificate: Allows the sale and supply of alcohol to members of a club.   
• Personal License: Required for individuals who sell or supervise the sale of alcohol.   

2. Food Licenses

Food Hygiene Registration: Required for businesses that handle, prepare, or sell food.   

Specific licenses for certain types of food businesses: Such as restaurants, cafes, takeaways, and mobile food vendors.

3. Entertainment Licenses

Allow businesses to provide live music, dancing, and other forms of entertainment. 

4. Other Licenses

• Tobacco Licenses: For businesses selling tobacco products.   
• Pet Shop Licenses: For businesses selling or boarding animals.   
• Licenses for specific trades: Such as hairdressing, beauty therapy, and taxi services.

The Retail Licence Application Process 

Step 1: Research and Determine Required Retail Licenses

Thorough research is crucial before applying for any retail license. You should begin by identifying the types of products or services your business will offer to determine which regulations you need to be aware of. 

Licensing requirements may vary depending on the local authority and the nature of your business. We highly recommend researching your particular business requirements by contacting your local council for detailed information on specific retail licensing requirements in your area.

Step 2: Gather Necessary Documentation

The specific documentation required for your retail licence will depend on which retail licence you need, and any local regulations. But, you can expect to need the following documents: 

Business Plan

A detailed outline of your business, including its purpose, target market, and financial projections. This will enhance your likelihood of successfully navigating the Rail Estate screening process for securing a unit by demonstrating your market insight and overall business acumen.

Personal Details

Information about the business owner(s), including proof of identity and address.

Premises Details

Information about the location of your business, including lease agreements or property ownership documents.

Financial Information

Proof of financial stability, such as bank statements or financial projections.

Police Checks

For certain licenses, such as alcohol licenses, police checks may be required for the business owner(s) and any designated premises supervisors.

References

References from relevant parties, such as landlords or other businesses.

Step 3: Submit the Application

Retail licence applications can typically be submitted online, by post, or in person at your local council offices. 

There are fees that you will be required to pay, and the processing time can be significant, so allow sufficient funds and time ahead of your business launch date to avoid any unnecessary delays.

Step 4: Attend a Licensing Hearing

For some licenses, particularly those involving the sale of alcohol, a licensing hearing may be required. This allows interested parties, such as residents or local businesses, to express their views on the application.

This doesn’t need to be a concern should you give yourself enough time to thoroughly prepare. 

Before your hearing, make sure you are confident in your understanding of the retail licensing requirements and application, and stay aware of any objections raised so you’re prepared to answer questions from the licensing committee and address any concerns raised by other parties.

Step 5: Receive and Review the License

Once the application is approved, you will receive the official retail license.

Before you celebrate, carefully review the retail license requirements to understand any conditions attached to it, as these can include restrictions on operating hours, noise levels, or the sale of certain products.

Retail Licensing Requirements – Laws and Regulations 

Once you have your retail license, you still have to stay on top of the complex and evolving laws and regulations. The retail sector in the UK is subject to a wide range of terms, with four main Acts to know inside and out… 

The Licensing Act 2003

This Act governs the sale and supply of alcohol, entertainment, and late-night refreshments. It sets out the framework for obtaining licenses and the conditions that must be met to operate licensed premises.   

Food Safety Act 1990

This Act aims to ensure that food is produced, stored, and sold safely. It sets out requirements for food hygiene, food safety management systems, and the handling of food complaints.   

Consumer Rights Act 2015

This Act provides consumers with key rights, such as the right to return faulty goods and the right to receive accurate information about products and services.   

Equality Act 2010

This Act prohibits discrimination on various grounds, including age, sex, race, disability, and sexual orientation. It requires businesses to ensure equal access and treatment for all customers.   

Additional Retail Licencing Requirements

The four main Acts cover most operational bases of retail businesses, but there are further regulations that monitor more specific aspects of retail. 

Noise pollution regulations are imposed on businesses such as bars and clubs to limit noise levels from businesses, particularly those operating late at night or in residential areas.   

There are also strict fire safety regulations which apply to all businesses, including requirements for fire alarms, emergency exits, and fire safety training for staff.   

Businesses must also maintain their premises to be accessible to people with disabilities, including providing ramps, lifts, and accessible toilets.   

Finally, the General Data Protection Regulation (UK GDPR) sets out rules for how businesses must collect, store, and use customer data.   

Stay Ahead of Retail Licence Pitfalls 

Lack of Knowledge Can Lose Your Retail License

Operating a retail business without the proper understanding of licensing requirements can have serious consequences, including the potential loss of your retail license.

A qualified consultant can provide expert guidance on the specific licensing requirements for your business, ensuring you understand all the necessary steps and avoid costly mistakes.

At Rail Estate, we highly recommend staying updated on the relevant legislation and regulations for your business by regularly reviewing local council websites, reviewing government announcements, and subscribing to industry newsletters.  

By staying informed and compliant with all relevant laws and regulations, you can minimise risks, protect yourself from losing your retail licence, and build a strong reputation with customers.   

Delays in the Application Process

Delays in the application process can disrupt your business plans and potentially impact your launch timeline.

Submit a complete and accurate application to avoid delays, and double-check all information before submitting to ensure your application is complete and accurate to avoid delays caused by missing information or errors. 

Sometimes it’s necessary to follow up with the licensing authority, so be sure to contact the licensing authority if you’re waiting for longer than they initially suggested so you address any outstanding issues.

Meeting Retail License Conditions

Once you have obtained your retail license, it’s crucial to maintain ongoing compliance with all the associated conditions.

We highly recommend implementing robust compliance procedures, and regularly reviewing and updating your compliance procedures to reflect any changes in legislation or your business operations. 

Remember – internal audits are crucial to identifying areas for improvement before they become a problem, giving you time to resolve the issue so you can keep your retail licence. 

Rail Estate Supports Businesses with Expert Retail Licence Advice 

At Rail Estate, we specialise in finding the best retail spaces in high-footfall areas. Our experience means we have a comprehensive understanding of the industry and the retail licences businesses need to remain compliant. 

Our dedicated team can help you across your journey – from retail licensing requirements to moving into a new retail space.

What we do

• List hundreds of retail spaces across over 230 stations in the UK.
• Help businesses find the perfect location, from national chains to independent startups.
• Offer support throughout the process, including finding the right space, connecting with train companies, and streamlining occupancy.

Whether you’re a small independent shop or a national brand, we’re here to guide you through every step of the process. Start your journey with us today and contact us to access 900 million passengers in the UK. 

Get in touch for retail licence information and opportunities in 230+ railway stations