TOBACCO
Mastering the Backbar Constantly changing regulations and evolving consumers mean c-store operators must sharpen their tobacco category management skills By Renée M. Covino
A WELL-MANAGED BACKBAR is simple in theory, but complex in practice, thanks to constantly changing regulations around tobacco products, evolving consumers, contractual obligations, and a plethora of new-product entries.
Still, there are best practices that forwardthinking convenience store retailers can follow — some based on common sense; some evolving with the category. It’s important to consider them in tandem with one another and as part of the whole category’s success.
Wear a Consumer Hat Perhaps the most obvious category management practice is to stand back and think like a tobacco consumer. “It’s important to approach the space through a customer’s lens — make the backbar easy to shop,” said Tim Greene, category director at Smoker Friendly, a Boulder, Colo.-based chain of 181 tobacco stores operating in eight states. He believes c-stores can follow the lead of tobacco stores and “dedicate appropriate space for each subcategory, led by top brands, to ensure each provides maximum offerings and profitability.” Put another way, constant awareness of what’s selling in each subsegment and rationalizing the assortment to the wants of the consumer are a must, according to Bill Nolan, a partner with the Business Accelerator Team, a group of c-store industry consultants based in Phoenix.
Chris Dillard, tobacco category manager for Greenville, S.C.-based The Spinx Co., believes in planning a backbar strategy around the consumer, including consistent merchandising, product assortment, and inventory management. He is always on the lookout for opportunities to “add incremental value for the customer.” This can take shape through loyalty programs, incremental discounting, targeted promotions, and more. Dillard urges fellow tobacco category managers not to be afraid to try new things, which could mean new merchandising, new products, or new pricing strategies. Backbars are notorious for having a tremendous number of products displayed, acknowledges Victor Cavanaugh, senior manager of category management at Swisher. “Because consumers are more likely to shop these items from behind a counter, organization and visibility take on an increased importance,” Cavanaugh told Convenience Store News. “Creating sections in your backbar that group segments together help the consumer’s shopping experience. Creating planograms and updating them on a regular basis will keep assortments current and prioritize high-volume brands.”
Tapping Into Manufacturers’ Expertise Working with top manufacturers is another habit of successful tobacco retailers. “Capitalize on manufacturer programs and work with account managers to best communicate pricing, promotions, and new products,” advises Greene. If a c-store retailer is not working with the major manufacturers, whereby they’ll get the best discounts, they will have a hard time competing price-wise, notes
56 Convenience Store News C S N E W S . c o m
56-58.CSN_CMTobacco1221_v1.indd 56
12/6/21 12:47 PM
