Page 24 - TOB Magazine March/April 2013

50
TOBACCO OUTLET BUSINESS
MARCH/APRIL 2013
TOB Retailer
Survey Report
According to Tobacco Outlet Business magazine research unveiled by our own Ed
O’Connor at TPE 2013, 54 percent of stores participating in a recent survey
forecast a decrease in premium cigarette sales, 28 percent forecast an increase
and 18 percent report expect to see no change. Additional highlights from the
magazine’s retailer survey will appear in the next issue of TOB.
• Do well, quality needs to improve
• Do well but not much change
• Good quality improvements driving the category
• Carry seven brands, 8 skus, Lorrilard +++
Retailers’ Comments
Here to stay
Becoming a big category;
unbelievable growth
Believe it will explode;
majors getting in
Selling a ton.
If category goes away, problem.
Strong market, carry four brands and
adding fifth.
Fastest growing item, going
mainstream; Lorrilard;Altria Strong;
Fuma
10%
2%
2%
2%
2%
2%
5%
2%
5%
2%
2%
2%
2%
5%
2%
2%
2%
2%
2%
2%
6%
2%
5%
2%
2%
2%
2%
2%
Current % Forecasted %
Electronic Cigarettes
4%
of stores
forecast a
DECREASE
92%
of stores
forecast an
INCREASE
4%
of stores
NO CHANGE
+156%
Current
$28,600
Forecasted
$73,200
Average Dollar Change
Per $1MM Store
434 Reporting Stores
Change in Percentage of Item Mix
8%
4%
30%
4%
2%
4%
8%
8%
15%
8%
6%
6%
4%
10%
3%
4%
4%
6%
7%
7%
10%
4%
8%
8%
8%
3%
12%
4%
Current percentage
of store revenue
Category Make-up of a $1M Revenue Store
Premium Cigarettes
Tier 4 Discount Cigarettes
Electronic Cigarettes
Tobacco Filling Machines
Premium Cigars
Mass Market Cigars
Small Cigars
RYO/Pipe Tobacco
Lighters
Snus/Smokeless Tobacco
Relative Totals
Current
revenue
Forecasted percentage
of store revenue over the
next 18 months
50%
19%
2.8%
0
4.6%
4.6%
3.4%
9.5%
1.7%
4.1%
99.7%
$530,000
$202,000
$29,000
0
$48,000
$48,000
$36,000
$100,000
$18,000
$43,000
$1,054,000
46.5%
17.6%
6.5%
0
4.7%
4.4%
3.9%
10.1%
1.7%
4.4
99.8%
$520,000
$197,000
$73,000
0
$52,500
$48,900
$44,600
$113,200
$19,300
$49,000
$1,117,500
Forecasted
revenue
6%
TPE 2013 Takes...