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TOBACCO BUSINESS INTERNATIONAL
JANUARY/FEBRUARY 2015
O
uch! The heat from vape shops
is on for tobacco outlets and
smoke shops that are dabbling
(or more) in the e-vapor arena. While
some consider it a temporary force of
doing tobacco business today, others see
it as a serious threat. Still more don’t
quite know what to think, so various
strategies are emerging and evolving.
Generally speaking, vape shops
appear to be winning in assortment and
education, while traditional tobacco
shops have a more successful stake in
desirable price points and brand-name
recognition. However, tobacco outlets
are soaking up the vape knowledge
as fast as they can, and some are
already testing the vape-only concept
themselves.
Here are some competitive vapor
views, as reported from a few chains in
the traditional tobacco channel:
On the “Hard to Compete” Side:
Delta Distributors, dba Discount
Tobacco Outlet based in Andalusia,
Alabama, finds itself competing with
vape shops in “certain highly populated
markets,” reports Chris Jones, director
of operations. “We have seen growth
decline [in the e-vapor category] in
those markets; it is still growing, but
not as much,” he says. “We have found
it hard to compete with those places as
they are more set up to let customers
sample and also repair devices and
purchase replacement parts for devices.”
Furthermore, the chain has been
struggling to allocate the category space
and knowledge needed while being able
to provide the same level of service to
its traditional tobacco customers.
On the “Bad Business Model” Side:
Despite all of this, Discount Tobacco
Outlet is keeping a positive outlook
because from Jones’ perspective, vape
shops are “a temporary business model
that will eventually go away” with
increased government regulation. “We
have found a lot of these places are
mixing up their own liquids, essentially
acting as a lab, and with most of them
being single-store operators with low
investment, they are willing to risk
the liability that goes along with this,”
he tells
Tobacco Business International
(TBI)
.
On the “Question Mark” Side:
Tobacco Outlet Plus (Kwik Trip), based
in LaCross, Wisconsin, is holding its
ground and observing the new vape
shop channel for the moment. “They
are hard to compete against because
they have so much more to offer and a
better knowledge of the product,” notes
Handling the
Vape Shop Heat
Traditional
tobacco stores
have a variety
of opinions and
strategies
regarding their
vape shop
competition.
By Renée Covino
electric
ALLEY