Costcutter are having to pay out £650,752.48 due to failing to recover and recycle waste packaging properly under the Regulatory Enforcement and Sanctions Act.
The company is donating the sum to WRAP as part of the enforcement action due to its failure to take reasonable steps to recover and recycle packaging waste.
It has also joined the Valpak compliance scheme and paid costs to the Environment Agency.
Other retailers who committed similar actions and are having to pay out include Asos and Sofology.
ASOS will pay £5201.91 to the Canal & River Trust and Sofology will donate £26,001 to Recycling Lives.
The Environment Agency has published a list of environmental offenders for the period of 28 January 2017 to 31 August 2017.
For similar offences, Panache Lingerie will give £8,000 to Sheffield Wildlife Trust, Ecover will donate £22,022.29 to Marine Conservation Society and £11,011.14 to Canal & River Trust and Le Pain Quotidien will pay £13,270 to the Soil Association.
