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33TOBACCOOUTLETBUSINESSJANUARYFEBRUARY2012Ind.whichjumped2veplacestoNo.21intheTop50nowwith22storesfromNo.26with19storesin2011.CollettEnterprisesx1cdiditbothwaysx1dlastyearsaysCollett.x1cx4eacquisitionsaretherebutalsoespeciallyinamarketthatisnotalreadyadequatelyservedwecandoitgroundup.x1dHenotesthatanotherreasonthereismoreroomfortobaccooutletstoregrowthisthattraditionalmerchandisersx14conveniencestoresdrugstoresandbigboxretailersx14haveshrunktheirtobaccocategorymixx1cleavingopportunityforusinthemarketsweserve.x1dSmallertownso8ernewstoregrowthopportunity2ndsAndyWhitakervicepresidentofoperationsforTROofNorthCarolinaInc.LakeviewN.C.nowwith22storesandatNo.20upfrom20storeslastyearbutatthesamerankingthankstoothersgrowingtheirstorecountstoo.x1cItdependsontheareabutweclosedonestoreinalargertownandopenedupnewonesinsmallertowns2ndingtherex19snotasmuchretailcompetitionfromthebig-boxguysthatsellcigarettes.x1dhesays.x1cWealsolookedatthedrawinthesmallertownsandifthecountyseatisgood.Agoodcountyseatdrawssmallbusinesstoitandpromotesgoodtrac.x1dCautiousstoreexpansionmakesforthebeststoreexpansionrelaysWilliamGrantzownerpartnerofCoxx19sSmokersOutletLouisvilleKy.atNo.29with19stores.x1cIbelieveyoureallyneedtobeconservativewhenthinkingaboutopeninganewstorefromthegroundupx1dhetellsTOB.x1cAlwaysbetotallysoldonthelocationanddoplentyofresearchonyourcompetition.x1dGrantzwhoaddedonestoretohischainlastyearaddsx1cWewillkeepexpandingbutonlyinlocationswherewecancombinethecigarettetobaccoandliquorstorecombinations.x1dComboConversionExpandingintotobaccocombinationstoresisworkingforsometopchainssuchasCoxx19sSmokersOutletwhichishavingsuccesswithitsliquorcombinationformatsmentionedbyGrantzabove.KwikTripx19s39TobaccoOutletPlusstoresinLaCrossWis.atNo.10arealsohavingnichecombinationsuccess.x1cWepurchasedanoldstand-alonec-storeandconverteditintooneofourtobaccostoreswithagasoperationx1dexplainsTerrySchmitzzoneleaderforTobaccoOutletPlus.x1cWealsoselldairybreadssweetsproducegroceryitemsfountainandco8eeandourpremiumcigarbusinesshasgrown.Wearealsoalwaysaddingnewitemsin-and-outstohelpthebusiness.x1dGaryTapleyownerofSmokeShopinDyerInd.No.14with29storeshasalsox1cconvertedsomeofmystorestoac-store-likedemeanorx1dhetellsTOB.x1cSomearestrictlytobaccostoreswheretheyhavetobe18tocomeinbutinsomeIusepopandco8eeandsuchsomewhataslossleaderstoattractpeopletocomeinside.Ialsosellsomebreadandmilkwiththemarginsonthosemarkedverylow.Ix19vealsoexpandedintonewareaslikedogtreatsx14alotofsmokershavedogsIx19vediscovered.IfIcanmake10percentonsomethingnon-tobaccoIx19mhappy.Tobaccoisstill80percentofmypro2tsbutIx19mdedicatingalittlemorespacetonon-tobacco.x1dAndforTownCrierinMandevilleLa.No.48with9storestheFDAmandatefortobaccotogobehindthecounteropenedupitssquarefootageforalcoholaccordingtoRandyDrottowner.x1cCigarettesstillmakeupthemajorityofourvolumedollar-wisebutsquare-footage-wisewearenowmostlyalcoholx1dhesays.x1cx4ebehind-the-counterrestrictionsopenedupour1oorspaceforsomethingelse.x1dBeingreadytogetoutifalocationdoesnx19tworkisgoodbusinesspracticeadvisesWhitaker.x1cIfwe2ndtherightlocationwex19llopenanewstoreandtryitout.Wex19realwayslookingatdi8erentmarkets.But33TOBACCOOUTLETBUSINESSJANUARYFEBRUARY2012Continuedonpage36TOBx19sTop