MAKING TOBACCO WORK IN YOUR STORE

Independent retailers face increasing challenges with selling tobacco, writes CHARLES SMITH, but shoppers still expect it to be part of stores’ convenience o ering

Why Retailers Should Still Stock Tobacco

TOBACCO sales are being seriously squeezed. Smoker numbers are in long-term decline, making up just over one in eight (13.3%) of the population in 2021. On top of that, the growth of disposable vapes, such as Elf Bar and Lost Mary, and next-gen alternatives, such as Iqos heatnot-burn products, is also eating into tobacco sales.

The cost-of-living crisis has increased the number of consumers turning to next-gen products as they seek to give up or save money.

Dean Holborn has two stores in Redhill, Surrey, and Nut eld, a nearby village.

Redhill’s weekly tobacco sales are £5,000, while Nut eld’s are around £2,500. “Redhill’s customers are more transient and less a luent,” says Holborn,

“with many overspending on tobacco. In the past two years, the total tobacco category has declined by 20% or more, mainly due to single-use vapes. Roll-your-own (RYO) has shown minimal growth, cigarettes have dropped and cigars have declined markedly.” Tobacco presents challenges for independent retailers, but stocking it still brings rewards.

Despite all the pressures, tobacco remains a huge category and is worth £14bn before tax. Consumers come to independent retailers again and again for cigarettes, RYO, pipe tobacco, cigars and smokers’ accessories. Just as importantly, they buy other items while they’re there.

The retailers we spoke to are doing well with vapes, but don’t see their tobacco sales being stubbed out just yet.

“Tobacco is still a relevant part of convenience,” says Andrew Cruden, from Market Square News in Northampton. People come into his shop to buy tobacco and while they’re there, they pick up other things, too.

Cruden’s overall tobacco sales are around £10,000 a week.

“The total gure hasn’t changed much in the past two years, but there’s been a drop in cigarettes, with RYO growing 10%-15% and £700 per week going to vapes,” he says.

“Many cigarette smokers buy vapes as well. The government has set a target of 2030 for banning tobacco sales, but I can’t see it happening. It was going to be 2027, then they put it back.”

It’s an offence to sell tobacco to any person under 18 years of age. For tobacco trade use only. Not to be left in the sight of consumers.