50
TOBACCO BUSINESS
JANUARY/FEBRUARY 2014
gap between full price and sub-generic
cigarettes, “along with the majority of
our competitors moving to Indiana fair
trade retails.”
From a profitability standpoint,
Collett expects 2014 to be better than
2013 at his chain, but “perhaps not” in
sales dollars, he states. “We currently
sell the equivalent of over 700 cartons
a week in e-cigarette/e-liquid product,
and the number continues to grow every
week. Many of these sales have come at
the expense of traditional combustible
cigarettes. While the margin is
significantly higher, the sales dollars and
penny profit are not. I believe sales will
be slightly up, primarily due to new store
openings. The higher profit margins
offered by the ‘E’category, along with the
reduction in our controllable expenses,
should result in a more profitable year.”
But Collett also has a secret wish
that would result in an even better
future: “for the FDA to officially rule
[that] e-cigarettes/e-liquids are a safer
alternative to traditional combustible
cigarettes.” Then, the “current footprint
and merchandising flexibility within
our locations should allow us to really
take advantage of the boom that would
follow such an announcement,” he
explains.
hail: E-cigs
The best thing that happened to
Kocolene Marketing (Smokers Host) in
top-to-top
comparison
Compared to 2013’s list, here’s how the tobacco outlet industry’s
Top 50 chains add up for 2014:
•
In 2014’s list, there are 2,223 total stores versus 2,182 total stores in
2013’s list, a slight increase of nearly two percent (which is in keeping
with last year’s increase).
•
No chain is new to this year’s list; all Top 50 chains from last year
are in this year’s list, although some places have shifted in rank.
•
13 chains (26 percent) have increased their store count by at least
one store since the 2013 survey; six (12 percent) have increased by
more than one store.
•
Three chains (6 percent) saw store number declines, but all of them
reduced their count by only one store.
•
34 chains (68 percent) have stayed the same in store count.
•
A whopping 94 percent of
TB
’s Top 50 chains have either kept a
consistent store count or increased it.
