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It’s every businessperson’s goal: bringing in more money
at better margins. Drawing on a study co-sponsored by
Tobacco Business and Convenience Store News, Balvor
LLC’s David Bishop sought to offer tips on doing just
that at TPE 2017. “Winning at retail is about doing a
lot of things well, across marketing merchandising, op-
erations and the supply chain,” he acknowledged. “But
while there’s no single thing that will be a panacea, there
are actions we can take as retailers and manufacturers.”
1
Educate and EmpowerYour People.
Skilled, well-in-
formed employees are a boon to any business, but they’re
even more crucial in tobacco retail, where a business can
be devastated by a single age-verification transgression.
While most retailers cover the basic age verification train-
ing, only 37 percent report assessing employees on their
competency selling age-restricted products. “That should
raise a red flag, because operating that way exposes your
business to unnecessary risk and liability,” says Bishop.
2
Evolve with the Times.
“Retailers who adapt to
and evolve around their surroundings are the most likely
to survive,” noted Bishop, who pointed out that manu-
facturers are moving toward alternatives to combustible
cigarettes—and retailers need to do the same. “New
products are a retailer’s lifeblood, but the way we look
at new products has to change because deeming reg-
ulations are drawing a line in the sand.” If manufactur-
ers are unable to bring new tobacco products to mar-
ket, retailers will need to find existing products new to
their stores to introduce. “Forty percent of our survey
respondents reported expanding into handmade cigars,”
said Bishop. “If you don’t carry premium cigars in your
stores, that may be one to consider.”
3
Explore Alternatives.
The marijuana tide has
turned—today, 59 percent of Americans are in favor of
legalizing marijuana as compared to 33 percent in 2001.
“That’s an amazing evolution of public opinion,” said
Bishop, who suggested that the number will continue to
increase as younger Americans reach voting age. “Thir-
teen percent of U.S. citizens currently use marijuana;
15 percent currently use cigarettes,” he added. “I’m not
necessarily suggesting selling the actual product, which
is difficult for traditional retailers. Instead, explore selling
accessories that support it.”
4
Engage in Shaping Future Threats and Opportu-
nities.
“Advocacy gives you more control over the out-
comes in areas of uncertainty,” noted Bishop, who urged
retailers and manufacturers to monitor legislation and
regulation and talk to legislators about their perspectives.
“Whether it’s about increasing the purchase age to 21 or
weighing a flavor ban, make your voice heard.”
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TOBACCO BUSINESS
[
MARCH
/
APRIL
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17 ]
Making the Most of the Marijuana Movement
More and more retailers are stocking cannabis accessories.
Thirteen per-
cent of U.S. cit-
izens currently
use marijuana;
15 percent
currently use
cigarettes. I’m
not necessar-
ily suggesting
selling the
actual product,
which is diffi-
cult for tradi-
tional retail-
ers. Instead,
explore selling
accessories
that support it.
Winning
at
Retail
Balvor’s David Bishop offers tips on boosting store profits.
MULTI-USEVAPORIZERS
% Selling in All/Some Stores
PIPE
(ceramic, glass, metal)
21%
30%
35%
7%
12%
15%
64%
73%
Convenience
Convenience
Smoke Shop/
DTO
Smoke Shop/
DTO
Tobacconist/
Cigar Lounge
Tobacconist/
Cigar Lounge
All other
All other
Source:
2017 State ofTobacco Retailing
,
Balvor LLC, Convenience Store
News,Tobacco Business
Magazine