With the introduction of the tobacco display ban there are a great number of unknowns about the effect it will have on smoking habits and ultimately how the convenience retail market will be reshaped by the removal of tobacco from display.
by Kevin Scott
It might come as something of a surprise that only 31% of retailers are ‘strongly opposed’ to the tobacco display ban, the restriction this has on a retailer’s ability to showcase their wares. However this isn’t fresh fruit being covered up. Tobacco is a highly contentious category, one which in recent decades has been increasingly legislated against due to the adverse effects long-term smoking can have on health. The argument from retailers has always been that as long as tobacco remains a legal product then retailers should be allowed to sell it like any other.
With the display ban and the proposed introduction of plain packaging, the amount of information that can be imparted to customers is virtually nil – price lists are about it. However, research from him!’s Convenience Barometer finds that most adults don’t think the ban will change where they buy their tobacco – which isn’t a huge shock given every outlet will be covered. Half of smokers are concerned about price rises in tobacco following the ban though, so retailers could allay their fears even during conversations.
When it comes to staff training, we’ve been going on at length about the importance of ensuring any disruption is minimal, and this is reinforced when you consider that 54% of consumers expect queueing times to increase – so make sure they don’t! It could win you new customers, especially if the store along the road isn’t coping as well.
Ahead of the ban, a further him! study found that only 51.7% of consumers were aware of the ban coming into place. Now, whether you think the ban is a positive or negative device to reducing smoking levels, it is clear that the Governments of the UK and Scotland have not gone nearly far enough to educate consumers on a fundamental change to the way grocery shops will look.
Another point of note is the type of outlet where tobacco is purchased Him! research indicates there will be a slight benefit to convenience stores. This won’t come from supermarkets however; 64% of smokers currently buy their tobacco from supermarkets and this is set to remain static. However, it is predicted there will be migration from forecourts to convenience stores. Currently, 48.6% of consumers buy their tobacco from c-stores, and 16.3% from forecourts. The research indicates this will change to 49.2% and 13.5%.
That’s what customer think. What about retailers? Well, only 16% were in favour of the display ban, while 43% think it will negatively affect footfall. In addition, 32% think it will have a negative impact on sales. If we flip these numbers more than two-thirds of retailers don’t believe the ban will lead to a reduction in sales – which is hardly in line with the entire philosophy behind the ban.
Oddly, 2% of retailers believe the ban will have a ‘major positive’ effect on sales, while a further 6% reckon a moderately positive change is coming their way.
No one can say for certain, but whatever the future holds, it begins now.
