A Closer Look at Who’s Trading Down According to Mintel International, 80% of smokers polled said it’s worthwhile to have a quality cigarette, which is contributing to sales of premium cigarettes. Other factors influencing sales include: • 51% of smokers have one preferred brand they always like to buy. • Less than 2% of smokers…
A Rocky Ride for RYO
Proper Handling Quality counts—especially with tobacco, something c-store operators had better keep in mind. Kevin Paige, owner of three Butthead’s Tobacco Emporiums in Danbury, Conn., said he is trying to distance himself from the c-store channel when it comes to tobacco. “Although I operated my own c-stores for over 20 years, I don’t think the…
Ontario Fights 8% Tobacco Tax
Ontario Convenience Stores Association (OCSA) is warning that if the Harmonized Sales Tax (HST) is introduced as planned on tobacco products, tobacco prices would grow by 8%, redirecting millions of dollars in taxes to organized crime groups. As it stands now, sales of tobacco products are not subject to Ontario, Canada’s 8% Provincial Sales Tax…
Finding Profits with Tobacco Accessories
Food and Drug Administration (FDA) mandates, scheduled to go into effect on June 22, prohibit retailers from selling cigarettes and smokeless products in self-service displays except in age-restricted stores that ban customers younger than 18 years of age. While retailers in some states, such as New York and Idaho, have already had to comply with…
Economists Offer 2010 Outlook
Economists presented both sides of the picture to retailers at the NACS State of the Industry Summit in Chicago this week. The 2010 NACS State of the Industry Summit marked the 40th anniversary of the State of the Industry survey conducted by NACS. When the survey began, industry sales were recorded at just over $1…
Selling Smokes Still Profitable
While foodservice sales are soaring, the tobacco category is still as important as ever. I heard recently that the the profit convenience stores derive from foodservice has overtaken that of tobacco. Now I’m right there with the rest of the industry in joining the deli revolution, but that does not mean that I’m ready to…
Stop-N-Go Pulls Adult Magazines
Stop-N-Go, which runs more than 20 locations in North Dakota and Minnesota, has stopped selling adult magazines at its stores. The chain’s owner, Sheldon Ellig, told the Grand Forks Herald adult magazines were previously removed from six Stop-N-Go stores and other stores pulled the magazines from shelves this week. “We have had a number of…
The Shack Pushes the Bounds of Convenience
As all convenience store chains look for innovative ways to drive sales as tobacco and gas margins decline, they might take note from an unlikely teacher—a small town store in Grandy, Minn., whose unique offerings are going to new lengths to meet consumer demands. Though only 1,100 square feet, “The Shack on 65” packs the…
FDA Issues Final Rule On Tobacco
The FDA has released its final rules regarding the sale of tobacco. Retailers will need to be in compliance with these rules by June 22, 2010. Today’s action by FDA restricts the sale, distribution and use of cigarettes and smokeless tobacco, including provisions that: • Prohibits the sale of cigarettes or smokeless tobacco to…
7-Eleven Joins NATO
NATO, the National Association of Tobacco Outlets, announced that 7-Eleven Inc. has joined NATO as a retail member. Based in Dallas, 7-Eleven operates, franchises and licenses more than 6,970 stores in the U.S. and Canada. As one of the leading national retail trade associations that focuses exclusively on state and federal tobacco legislative issues, NATO’s…