Thursday, March 10, 2011

Smokeless Tobacco Use Sees Upward Trend

For today's convenience store owner, there's no mistaking the fact that cigarette sales are on the decline. But the convenience store business is healthier than ever. Were you aware that convenience store commerce forms nearly 12 percent of the U.S. retail industry? The statistics supporting a trend in the growth of the convenience business are staggering. I encourage you to visit CSNEWS and read more. But in case you're like me and prefer having all your information in one place, I'll lay it out for you. According to recently released statistics, "Growth in the convenience store industry will continue through 2013 at a CAGR of approximately 7.6 percent, market research consultant RNCOS reported. The convenience store industry, which currently forms nearly 12 percent of the U.S. retail industry, has seen several years of growth, with the number of individual convenience stores expected to increase as well," (CSNEWS).

It's easy to fret about lost units in certain categories, but rather than offer complaints our industry has found solutions! At Allen Brothers, we've seen first-hand how store owners, vendors, manufacturers, and distributors have become more creative & resourceful in finding new ways to generate revenues.

To that point, I came across an article regarding smokeless tobacco and wanted to share. The publishing syndicate Convenience Store News for the Single Store Owner reports that the unit sales of smokeless tobacco products are offsetting declines in other areas of the tobacco industry. In fact, in a recent study it was found that 30% of the recent decline in cigarette sales is being offset by the robust sale of small cigars, snuff and roll-your-own products.

Smokeless tobacco products are certainly one way that the convenience world has adapted to declines in other areas. But it's not all snuff. The emphasis on ready-to-eat foods at convenience stores is a growing trend, and many stores are stepping up their ready-to-eat food offerings to make up for declining cigarette sales. I'd like to open up the discussion to find out what other ways the convenience industry has not only survived, but excelled in today's market. Post your thoughts and partake in today's AB Poll below. Happy selling everyone!

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