9 / 65
01 |
SMOKER FRIENDLY
INTERNATIONAL,
Boulder, Colorado; 852 total
authorized dealer locations
02 |
ADMIRAL
DISCOUNT TOBACCO,
Coopersville, Michigan;
173 stores
03 |
TOBACCO CENTRAL
DBA LOW BOB’S,
South Bend, Indiana;
122 stores
04 |
THE CIGARETTE
STORE CORP.
(Smoker
Friendly corporate stores),
Boulder, Colorado;
99 stores
05 |
TOBACCO
SUPERSTORES INC.,
Forrest City, Arkansas;
87 stores
06 |
WILD BILL’S
TOBACCO,
Troy, Michigan;
66 stores
07 |
SMOKERS CHOICE,
Rock Hill, New York;
59 stores
08 |
TOBACCO
CONNECTION/
BIG SMOKE,
Nampa, Idaho;
53 stores
09 |
BROOKSHIRE
BROTHERS (TOBACCO
BARN),
Lufkin, Texas;
48 stores
THE 2017
TB
TOP 50
ROSTER
The top 50 tobacco
outlet chains of the
year, by store count
(as of 1/31/17):
Running a tobacco store today is no easy feat. Tax hikes;
federal and state regulation and anti-tobacco agitation
continue to stack the cards against the channel and its
retail players higher and higher. The name of the re-
siliency game seems to be to hang on to the nuggets of
good news in a sea of bad—and, even more importantly,
hone the source(s) of growth potential for future viability.
Those with decades of experience who have weath-
ered their share of harsh tobacco times (think SCHIP
taxes) are best prepared, not only to cling to survival tac-
tics, but to step out with a few fresh ideas. Naturally, they
have a host of complaints and fears, but they focus more
sharply on good news and positive action.
Hence, we present viewpoints from the top of the
crop, tobacco outlet retailers from
Tobacco Business
’s
(
TB
’s) just-released 2017 Top 50 list (see sidebar, “The
2017
TB
Top 50 Roster”), comprised of retailers that
range in size from eight to 852 stores/authorized dealers.
FIRST, THE GOOD NEWS
Good news may not be abundant lately, but every one
of our top 50 respondents mentioned at least one good
business vibration.
Growth in the form of a killer acquisition was the best
recent news for the industry’s top player, Smoker Friend-
ly International. “When we consummated a deal with
Fred Hoyland last year for his 13 Tampa-area Tobacco
Depot stores, we purchased some great stores with great
people, and have fully integrated them into our Smoker
Friendly family,” reports Terry Gallagher, Jr., president
of the Boulder, Colorado-based chain, with a total of
852 authorized dealer locations.
The Florida stores boast a strong premium cigar focus,
representing new territory for Smoker Friendly’s corpo-
rate-run division, The Cigarette Store Corp., which also
made the business decision to let go of some stores last
year, according to Gallagher. “We exited Utah and sold
two stores to Tobacco Connection out of Boise, Idaho,”
he says, referring to another top 50 player and Smok-
er Friendly authorized dealer. The idea is that Smoker
Friendly is even more particular now about its growth.
Smoker Friendly continues to offer experience and
expertise to retailers through its authorized dealer pro-
gram, but the tobacco outlet icon is also leveraging a
different kind of strategy epitomized by its acquisition
of Tobacco Depot. “We think we provide a good exit
strategy for the right type of established tobacco outlet
chains looking for an out, and we’re interested in more
of those types of opportunities,” maintains Gallagher.
Organic store growth is the best news reported by Rock
Hill, New York-based Smokers Choice, which grew by
five stores in 2016. Currently with 58 tobacco outlets, the
company is building three new stores set to open over the
next few months, says Doug Nolan, vice president. “We
are also rejuvenating older stores with facelifts and in-
creasing square footage where we can,” he tells
TB
.
Wild Bill’s Tobacco, which recently moved its
headquarters to Troy, Michigan thanks to a new
60,000-square-foot warehouse that directly services its
66 stores, just opened its first store outside of Michigan,
in the state of Ohio. The chain is also planning to open
three or four more Ohio stores this year. “We will see
how they do—if they do well, we’ll expand even more
into Ohio,” says Justin Samona, chief marketing officer.
“We did our homework—market research. Plus, with
PHOTOS BY JIM COONTZ, PHOTO OF TERRY GHALLAGER JR. BY ANTHONY CAMERA