Category Management | Tobacco
With hard-to-predict influences in the form of regulations at all levels of government, supply disruption, newfangled products and shifting consumer behavior, merchandising the tobacco back bar may seem as tricky as ever to today’s retailers. Cigarette dollar sales have been relatively flat, rising just 0.1% for the 52 weeks — and slightly down 0.8% for the 12 weeks — ending Aug. 8, 2021, according to total U.S. convenience data from market research firm IRI. Spitless tobacco and electronic nicotine delivery systems (ENDS) were consistent big winners, registering boosts in dollar sales of 46.7% and 18.4% respectively for the same 52-week period. Other tobacco products (OTP) showed the biggest drops, with both pipe (-24.2%) and roll-your-own (RYO) (-11.4%) tobacco seeing large 52-week declines. With a product that is so heavily regulated, it can be difficult for retailers to use the same incentives as other products to boost sales. That means stores must maximize the discounts and other incentives offered through manufacturers, like special pricing and loyalty discounts. Here are some tips on boosting sales for the segment:
– Vince Segura, merchandising manager, Fuel City
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CSTORE DECISIONS •
October 2021
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We have a lot of return customers. If you find a customer that likes an off-brand … and they want it, bring it in for them. Then keep it in stock for them, and you’ll keep that customer coming.
cstoredecisions.com
