FALLING GIANTS GIVE WAY TO INDEPENDENT TOBACCO RETAILERS

When big box stores and large chains stop selling cigarettes and tobacco it means more business for independent retailers.

As of March 16, 2014, more than two dozen attorneys general sent letters on to five of the country’s largest retailers, encouraging them to stop selling tobacco products in stores that also have pharmacies, which would follow the example CVS stores set with its announcement earlier this year that it would stop selling such products in its drugstores. The letters were sent to Rite Aid, Walgreen, Kroger, Safeway and Wal-mart, five companies that are among the biggest pharmacy retailers in the country.

In Feb 2014, CVS announced that they would stop selling cigarettes and tobacco in their 7,600 stores and projected that it’s loss in revenue from their decision will be in excess of $2 Billion. That breaks down to around $1.5 billion in tobacco sales and $500 million in sales of other products to tobacco customers. If each of the five other Retail Giants follow suit there could be a influx of $8 billion in market share flooding the retail tobacco industry.

What does this mean for independent tobacco retailers, tobacco outlets, smoke shops and small chain companies? It’s should be good news for retailers positioned to provide the brands consumers want at pricing that rivals their local competitors.

Currently, independent retailers lose a tobacco-related sale to the giants when customers engage in “one-stop shopping”.  They might go in to buy one thing and buy cigarettes before they leave.  However, with the news that the giants are being pressured to follow CVS’ example the threat of losing a sale to a “one-stop-type” customer may go the way of the Dodo. This is good news for small and medium sized tobacco retailers.

TheCstoreEstore.com has the largest selection of Cigarette Displays and Tobacco Fixtures including attractive wall units with ultimate flexibility, clear signage for bold brand graphics and most importantly optimum product placement. Our fixtures accommodate cigarette packs, cartons, snuff, snus, cigars, e-cigs and all other tobacco products and accessories. Consider us a partner helping you to select the right tobacco fixture that will fit your budget and meet your sales goals for your tobacco related products.

Visit our website to view a full range of tobacco fixtures and cigarette displays. With the exception of custom units, all pricing is disclosed on our website and online ordering is very simple. Call us and we’ll provide you with immediate pricing for all custom units.

TheCstoreEstore.com

(866) 630-2100
sales@cademanenterprises.com

Jim Richards

Jim Richards is the Managing Member of CADEMAN ENTERPRISES, LLC and founder of "TheCstoreEstore.com", the leading online distributor of cigarette racks, tobacco fixtures and cigarette display cabinets and the exclusive manufacturer of M-Series Overhead Cigarette Racks.

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