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28TOBACCOOUTLETBUSINESSMAYJUNE2009inbuildingitsx3rstcigarlounge.x1cWedecidedtotakeoneo.ourbeststoresandmoveittwodoorsdownintheshoppingplazawhenalargerspaceopenedupx14andaddaloungeasatestx1dsaysJoeLaCortedirectoro.operations.orthe12-storechain.x1cNotonlyisitourbusieststorebutitx19salsothemostcentrallylocatedgeographicallyo.allourlocations.Soitgivesusaper.ectstartingpoint.x1dTetiming.ortheloungex1cjust.ellintoplacex1dexplainsLaCortewhonotesthatSmokes4Lesswascare.ulnottopushtheconceptontoitscigarcustomersprematurely.x1cCustomershavebeencomingtous.orawhileinourstoressayingx18Youguyshavealoto.storeswhydonx19tyouthinkaboutbuildingusaloungex19x1dsaysLaCorte.x1cWegotsuchanover-whelmingnumbero.inquiriesthatweknewwecouldnx19tignoreitbutwealsodidnx19twanttorushoutanddosome-thingtooimpulsive.x1dSothecompanyhungbackandwaited.ortheper.ectopportunitywhenthespaceopenedupatitsbusi-eststorex19splazaSmokes4Lesstookthatasthegreenlighttomove.or-ward.OncethedecisiontoaddaloungewasmadeSmokes4Lesswantedtodoitright.LaCortebelievesthatasanx1cexclusivetobacconistx1dSmokes4Lesshasaresponsibilitytoitscom-munityx14moresonowthaneverx14toprovidealegalplace.orpeopletosmokeandhangout.x1cWithsomanylittleplayersstartingtogetouto.thisbusinessx14likethesmallerdelisandtownshopsx14wewantedtogivesmokersa.ocalpointthatx19sjust.orthemx1dhesays.Andsowhilethecompanyisstart-ingoutwithonlyasolesmokingloungeitisawell-thought-outone.x1cOurloungehasax1at-screenVclubchairsmagazinesx14itisaveryinvitingplacex1dLaCortereports.Teloungealsoboastsadozenorsocigarlockerstox1cseei.theybringinalittleextrarevenuex14wex19veneverdonethiskindo.thingbe.orex1dex-plainsLaCorte.Oferingthemtocustomersonax3rst-comex3rst-servedbasisLaCorteaddsthatx1cwex19ll.eelitoutovertime.I.theinterestwegetcalls.ormorewewill.Dependingonthespacingeventuallywemighttakeitupto24or36lockers.x1dLaCortegotsomeo.theloungeideassuchastheadditiono.lock-erswhileonvacationwithhiswi.einSaratogaSpringsN.Y.x1cWhilemywi.ewasshoppingIvisitedatobac-conistthereandhegavemesomegreattipsx1dheexplains.x1cHetoldmetoleaveroom.orlockerexpansioni.needbe.x1dOvertimethepossibilityo.addingloungeswillalsobeconsidered.Tepurposeo.thistargetedtestistoseex3rsthowonewill.areaccordingtoLaCorte.AndSmokes4Lessiskeep-ingitsinitialexpectationsrealistic.x1cOurgoalistobeabletocoverourexpensesonthenewlocationintermso.ourrentx14whichhasnowdoubledx14sowehavetocoverthatataminimumx1dLaCortesays.x1cTenwex19llseewherewecangowithiti.itdoeswellintothe.uture.Asourotherleasesstartcomingduetoberenewedwemaylookintomovingourotherstorestobiggerlocationssowecanbuildmorecigarlounges.x1dAbigparto.thesuccesso.thenewSmokes4Lesscigarloungewillbetiedtohowwellithastargeteditsci-garcustomers.Te.actthatitalreadyhadax1ccigarclubx1dmemberlisto.closeto500customershashelpedaccord-ingtoLaCorte.Tecompanyhadal-readybeene-mailingcouponssuchasthose.or15percentofthepurchaseo.threecigarstomembersbutnowLaCortehasaddedcigarloungepro-motionsandeventsatarateo.atleastonepermonth.Ax18ChoiCex19ProgrAmBasedinParkersburgW.Va.NBSInc.with37SmokerFriendlyautho-rizeddealerstoreshasalsobeena.ano.selectivecigarmerchandisingx14throughtheuseo.itsscandata.x1cFromourmonthlysalesreportswe.oundthat10storesarewhatwewouldconsidertobepremiumbetter-cigarstoresx1dexplainsReganBartleymarketingdirectoro.thegroup.x1cTestoresareindiferentregionsx14OhioWestVirginiaMarylandx14buttheyarepronetohigher-classwhite-collarcigarcustomers.Wepickedout10Smokes4Lessistakingaslowandsteadyapproachtotargetingcigarsmokersgraduallytestingcigarloungesinitsstores.