Category Management | Cigarettes
Cigarette Sales Show Strong Rebound Despite taxation and regulation, convenience store retailers remain optimistic about this lucrative category, though a potential ban on menthol products is looming. John Lofstock • Editor-in-Chief
When c-store operators talk cigarettes these days, they inevitably end up talking taxation and legislation. And as America struggles to find the proper balance between individual rights and societal responsibility, retailers everywhere are getting squeezed. But as we emerge from the COVID-19 pandemic, there is reason for optimism as cigarettes over the past year have shown a remarkable ability for bouncing back. In terms of a year-over-year comparison, for the 52 weeks ending April 18, 2021, unit sales of cigarettes slipped 4.9%, in large part due to the pandemic and tax hikes. However, for the four weeks ending April 18, 2021, unit sales 38
CSTORE DECISIONS •
June 2021
rebounded, increasing 1.7% over the same period in 2020, suggesting consumers are making more trips to the convenience store as they emerge from the COVID-19 pandemic, according to Chicagobased research firm IRI. But where the numbers really start to stand out is across urban independent stores, where sales have been booming for the past 12 months.
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