Tobacco trends

Demand for value is the biggest trend in tobacco and one that retailers should make sure they’re well prepared for to profit from the £14bn per year (before tax) category^[i]. With the lowest price tiers of cigarettes and roll your own accounting for the majority of sales[ii], offering a range of products that tap into this value trend is key.

Alongside a strong range, the importance of offering products at attractive prices and maintaining availability at all times cannot be underestimated, as these are essential to achieving sales success and retaining customers. Running out of stock may result in loss of sales and customers going elsewhere. Ensuring staff are well trained and can assist shoppers with knowledgeable advice about products, by using platforms like Ignite, will also enable retailers to benefit from repeat visits and rising sales. To help retailers understand more, members of Imperial’s Ignite Retailer Panel, including retailers from across the nation, share their advice on how to boost sales within the Tobacco category.

Yawer Rasool, Consumer Marketing Director, Imperial Brands: “While some shoppers will be keeping an eye on what products are the cheapest, others will be looking for their brand of choice. Therefore, ensuring there’s a selection of different tobacco products on offer that fit these different needs is essential to driving sales. “Deciding what products to stock can be a daunting task but our sales reps and Ignite platform simplify the process for retailers with guidance on the latest trends and top-selling brands to help them decide what will work best in their store. Ignite also offers a range of other benefits and trade promotions that help retailers train their staff, build advocacy and importantly maximise their potential profits.”

Prerna Puri, Silver Stores, West Drayton: “Having a good range at a good price is key. Customers know if they are getting ripped off. They might buy cigarettes from you once, but they will walk to another shop and see what the price is there, and then make their decision as to where they will go in future. “There’s quite a lot of educational content on the Ignite app, such as quizzes, and it’s really useful to be able to pass messages down to the staff so that they can pass them down to the customer. It’s helped us to drive sales from an educational aspect.”

Tharsan Thayalan, Best-one, Bolton: “I’d recommend retailers ensure they work with their store reps. They visit all of the stores in your area so they’ll always pick up on any interesting trends. My Richmond sales would not be as high as they are if it wasn’t for my rep, Craig. So, listen to your reps and don’t just assume you know everything and ignore advice. The way you are going to learn is by listening to people. I’d also recommend frequently talking to your customers. I’ve trained my staff to have conversations with any of the customers that come in and are willing to chat, as it doesn’t cost you anything.”

Neelam Ali, Ali & Son Forgewood Supermarket, Motherwell: “You have to make sure your staff know if someone is coming in and asking what’s the cheapest, they know exactly what the cheapest on shelf is because that’s what the customer is looking for. Looking ahead, I think there will definitely be more of a trend towards value tobacco products and what’s the cheapest, and that will grow in importance. I don’t think that trend will ever go away now. “Tobacco can also be a good footfall driver for other category sales. If someone comes in for a packet of cigarettes, they might buy a lottery ticket or something for lunch. So, tobacco does drive wider category sales.”

Gary Luney, Vivo Essentials, Newtownards: “One of the main advantages we have as convenience retailers over supermarkets, is that we’re adaptable, quickly, we’re friendly and we’re local. That’s what makes us different. We go above and beyond to be helpful for our shoppers and that’s a big factor. Keep a good range of products and have them available all the time. Don’t run out of anything ever. That’s what I put my store’s success down to, we never run out and we always have the product on offer every time a shopper walks in. The biggest thing about doing this job is being consistent and having the right product on the shelf, every single time.”

Visit imperial-ignite.co.uk or speak to your Imperial rep now to find out more about how Ignite can benefit your store 

[i] ITUK EPOS to w/e 29/08/21, P1 Retail & Wholesale

[ii] Report on Trade, November 2023