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Tobacco Danger for Small Retailers

As we all know by May 2017 cigarettes must be sold in twenties, in plain packaging and with no pricemarks. So small retailers are no longer shackled by the PMPs and can increase their selling prices. Right? No - wrong!  Independents are already losing market share by inflating tobacco prices. It is forecasted that small store footfall will decline as much as 20% as shoppers will seek out the best deal. In turn sales and profit will be lost if stores premuim price their tobacco prices. So what to do? Price tobacco prices at RRP or below. The RRPs should be stated on the wholesalers' invoices and are a useful guide. Keep a close eye on multiple competitors and try to stay within a sensible range of their selling prices. AND of course do everything possible to reduce dependancy on tobacco by testing other ranges. Especially behind the till points.

David Gilroy

Store Excel

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