Tobacco manufacturers’ cash incentives keep stores at RRP post-TPD2

Retailers are being offered hundreds of pounds in return for sticking to RRPs on tobacco products following the removal of price-marks under the EU Tobacco Products Directive 2.

Imperial Tobacco reps are asking retailers to join their Ignite incentive scheme in a bid to halt the surge of retailers abandoning RRPs. JTI has a similar incentive scheme.

Sohail Saleem said he had moved back to RRP at his Xtra Local store in Uddingston, South Lanarkshire, after signing up with Imperial.

He told Retail Express: “We worked it out and the incentive means we will make the same amount each month, but lower prices should mean our customer retention is higher.”

An Imperial spokesperson said the incentives are given when retailers have a selected range of Imperial products priced at or below RRP and display an approved price list.