Savvy retailers can still sell well
COVERED gantries and plain packaging are the new norm for tobacco sales, seriously limiting the options available to retailers in what is, for many, a vital cornerstone of their business.
However, while regulations are tight, they are the same for everyone, meaning those retailers who put that extra bit of effort into their tobacco range could still come out ahead of the competition.
Jeremy Blackburn, head of communications at JTI said that in the wake of TPD2, it’s important for retailers to continue investing in the tobacco category in order to maximise profits, ensuring they maintain a broad and well-stocked range to meet customer demand.
“Maintaining range and availability at all times is of vital importance to ensure that retailers become a destination store of choice as existing adult smokers and vapers will expect their brands to be readily available,” said Blackburn.
“Research tells us that almost 27% of existing adult smokers choose to buy elsewhere if their brand is unavailable.
“Therefore, it’s vital that retailers maintain full availability and range to ensure they do not lose out on sales.
Gavin Anderson, general sales manager for Republic Technologies, agreed that retailers should continue to invest in their range now that the TPD2 deadline day has come and gone.
“With the introduction of TPD2, it’s now more important than ever for retailers to find ways of signposting the category to promote and maintain tobacco sales,” he said.
“Stocking the right range of tobacco accessories and merchandising accordingly is key to making the most of sales from this category.”
Anderson suggested that, as with tobacco products, customers purchasing accessories will still expect to be able to choose from a strong core range, which means retailers must be sure to keep well stocked.
And although the most recent raft of rules placed on retailers severely limits tobacco displays, Anderson offered some advice on how retailers can effectively merchandise their accessories range.
“Using display stands and off gantry fixtures will help to signpost the tobacco category in-store while additional prominence will also boost sales of RYO products,” he said.
