You opened a shop in London: what you can sell — alcohol, medicine, tobacco — and the licences you need

You have opened a shop in Britain — congratulations. But before you fill the shelves, know this: some goods you can sell freely, while others need a licence, age checks, or are banned outright. Here is what a grocery shop may sell and what you must arrange first. Rules differ a little in Scotland, Wales and Northern Ireland, and licences are issued by your local council — the body to check with.

Food and groceries

You can sell food freely, but the shop must be registered as a food business with the local council — free, and no later than 28 days before opening. Then follow the Food Standards Agency hygiene rules, display your hygiene rating, and give allergen information for anything sold unpackaged.

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Alcohol

To sell alcohol you need two things: a premises licence from the council under the Licensing Act 2003, and a named Designated Premises Supervisor (DPS) who holds a personal licence. You may only sell within the hours on the licence. A Challenge 25 policy is essential (ask for ID from anyone who looks under 25), and sales to under-18s are strictly banned — the penalties are fines and losing your licence.

Tobacco and vapes

Here the rules are tightening fast. The new Tobacco and Vapes Act 2026 brings in a “smokefree generation”: anyone born on or after 1 January 2009 can never legally be sold tobacco — the age of sale rises every year. Single-use (disposable) vapes have been banned from sale since June 2025. Tobacco must be kept out of sight (a display ban), there is a track-and-trace system, and selling to minors brings serious penalties. A registration/licensing scheme for tobacco and vape sellers is also being introduced.

Medicines

Without a pharmacy and pharmacist, a shop may only sell general-sale (GSL) medicines: small packs of paracetamol, ibuprofen and the like. Pharmacy-only (P, sold only in a pharmacy with a pharmacist) and prescription (POM) medicines cannot be sold by an ordinary shop. Stick to small GSL packs.

Energy drinks and other age-restricted goods

The government has confirmed a ban on selling high-caffeine energy drinks to under-16s, which is being introduced — so prepare for age checks. Age limits also apply to knives and blades (18+), fireworks (registration/licence and 18+), and solvents and aerosols. Selling the National Lottery and scratchcards needs you to become an official retailer. For all of these, a single Challenge 25 policy is easiest.

What else to sort out

Register the business with HMRC — as a sole trader or a company; check business rates on the premises; take out liability insurance; and keep pricing and weights and measures correct. Also note the coming Deposit Return Scheme for drinks cans and bottles.

In short: groceries freely; alcohol only with a licence and a DPS; simple painkillers in small GSL packs; tobacco and vapes under strict and tightening rules. Before you launch, always check with your local council — it issues the licences and inspects shops.