Tobacco Business

[ 70 ] TOBACCO BUSINESS [ JANUARY / FEBRUARY | 22 ] TOBACCONIST Multi-Category Retailer Insights Discount tobacco outlets, smoke shops and other savvy tobacco retailers are growing their customer base by identifying in-demand products and tapping into new business opportunities. T The past two years have been challenging and a major test for discount tobacco outlets and smoke shops. These retailers cater to a more diverse customer base while carrying a plethora of products, from traditional combustible tobacco items like cigarettes and roll-your-own tobacco to newer categories of products that appeal to a different demographic, such as vapes, oral nicotine pouches and CBD products. The COVID-19 pandemic put many of these retailers in an interesting position. As the world shut down, their customers looked to them for more products, better service and some reprieve in the wake of growing uncertainty. These tobacco retailers saw business increase, but obstacles like flavor bans, higher taxes and increasing regulations threatened those higher profits and the boom in business. There are several other issues concerning those retailers working in the discount tobacco and smoke shop outlets, with staffing being among the most pressing. With a dire need for employees during the pandemic, these retailers are still grappling with how to attract new employees and balancing higher wages and benefits with each store’s high operating cost. These unique businesses are also working on maintaining their positions as destination retailers for those customers who are in search of in-demand and new tobacco products. “This requires a multifaceted approach that asks a lot of our employees,” says Tom Allen, west region director for Smoker Friendly International. “We need them to be courteous while staying up to date on a plethora of products and technologies that continue to change. We ask them to be stewards of our company’s reputation when enforcing age verification and handling customer complaints. We also ask them to do all of this during unprecedented times in our country and the world.” As the industry continues to recover from the pandemic, discount tobacco outlets and smoke shops are turning their attention toward growth and opportunity. What did they learn from the past two years? How has the pandemic changed their customers’ preferences? And what do they view as the next big thing? We spoke to a panel of retailers who are working in these tobacco outlets and posed those questions to them. Taking part in this panel were Terry Gallagher Jr., CEO of Smoker Friendly International; Jeremy Weiner, category director of cigars and premium products at Smoker Friendly International; Tim Greene, category director at Smoker Friendly International; Tom Allen, west region director for Smoker Friendly International; Doug Nolan, owner of Smoker’s Choice; and Bryan Reesor, general manager of Bo’s International. See what these retailers have to say about the changes impacting their stores and the opportunities others like them have to look forward to.