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The tobacco category in Independents and Symbols totalled £6.2 billion in the last year1, presenting a huge profit opportunity for retailers. However, in a changing market, proper merchandising is vital to maximise sales. Here, JTI Head of Sales, Ross Hennessy, explains how focusing on price, availability and range can help retailers make the most of the category.
“Value has become a clear trend in the current tobacco market and consumer purchasing decisions continue to be strongly driven by price. Retailers should therefore ensure they remain competitive by selling at the Recommended Retail Price (RRP) or below*.”
“The latest research also tells us that consumers are brand loyal, with 27%2 of existing adult smokers choosing to buy elsewhere if their brand is unavailable. To avoid losing out on these sales, retailers should ensure they maintain a full range and availability of tobacco brands across the pricing scale. There is still significant demand for premium and mid-priced brands, so retailers should stock the likes of Benson and Hedges Gold and Mayfair, as well as value brands like Sterling Dual and Kensitas Club.”
“When deciding what to stock, retailers should also be aware of the latest trends in the market, such as the growth of the Capsule segment, which is now responsible for 15.3% of total cigarette sales in the UK3, and the growing Value segment as consumers seek out value for money products. Scotland’s growing RYO category is now worth an estimated £189m4. The Value RYO segment in Scotland alone has grown 34% year on year5, so retailers should look to stock brands that cater to this such as the newly launched Kensitas Club RYO variant.”
“Having regular conversations with customers provides a unique opportunity for retailers to adapt their ranges based on demand, as well as gain invaluable category knowledge to boost sales.”
