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shops, the latter of which cater to a younger crowd,
reports company vice president Douglas Nolan.
Dropped Margins
Nolan reports that “margins have dropped on liquid
and devices, but more and more consumers are switch-
ing from smoking, so there has actually been continued
growth of sales.”
In the areas where Smokers Choice operates, Nolan has
not seen many vape stores closing. “The vapor trend is still
growing, and has not even crowned yet,” he says. Howev-
er, he has witnessed many stores that were previously mix-
ing/supplying their own liquids that can no longer find
or afford to purchase the replacement inventory needed
from liquid suppliers. Many have sold out to investors with
“deeper pockets for deeper inventory levels,” he reports.
The vape shops run by Smoker’s Choice are in a
wait-and-see holding pattern, as are many independent
vape shops in the chain’s market area. “Store openings
have levelled off, but business, so far, has not,” he tells
Tobacco Business
(
TB
).
Troy, Michigan-based Wild Bill’s Tobacco also invest-
ed in a sister vape shop business—its Mr. Vapor subsid-
iary concept, launched in 2014. While the Mr. Vapor
store count has been reduced from 11 stores at peak to
its current six stores, the chain also operates Mr. Vapor
sections in all 66 Wild Bill’s tobacco stores.
The Mr. Vapor business model hasn’t changed signifi-
cantly, but there have been some business updates since
the deeming regulations were finalized. “Obviously, we
can’t sample anymore,” says Justin Samona, director of
operations for Mr. Vapor and Wild Bill’s. Mr. Vapor also
dropped about a dozen liquids that had labels with ques-
tionably child-appealing flavors/labels.
On the positive side, the Mr. Vapor sister concept has
learned how to be a survivor in a winnowing field. “We
blow out product that’s not selling,” says Samona. “Our
competitors won’t blow it out and take a loss, but we’ve
learned that it’s OK to take a loss for newer, fresh items
that customers are asking for.”
Wild Bill's Tobacco in Westland Michigan
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