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A Sticky Situation for Cigarettes

It's fairly clear that the volume of cigarettes and tobacco sales is declining. The decline seems to have taken a more pronounced downturn with the impact of the tobacco display ban.

Until recently this has been compensated for by a steady increase in the value of sales due to manufacturers' price increases and the increase on government duty. But now there are clear signs that the value of tobacco sales is also staring to decline.

There is more bad news ahead of us. The mandatory increase of stick counts to 20's and the removal of price mark packs will surely have a further negative impact on tobacco sales in small stores. This in turn could hit footfall and so affect sales in other categories.

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