Tobacco sales are declining in Australia as a consequence of public education and plain packaging. They are declining in most newsagencies from what I can see. Is it time for you to quit tobacco product altogether.
If your sales are under $2,000 a week, you are close to the point at which you are not achieving a sufficient return on investment to justify the space, labour and inventory investment. While I think the health case for quitting tobacco is clear, making it about the financial return makes it a business decision and that ought to be easier to assess for some.
My challenge today is: should you quit tobacco in your newsagency?
Related: I remain shocked the national newsagent association, the ANF, accepted funding from a tobacco company.
Footnote: I quit tobacco products in my newsagency in 1999 declaring that as a business attracting families I felt the category was inappropriate.
Did this months ago but now have to find the money to refit that area and get rid of the display case.
Carol, another newsagent I spoke with ripped the unit off themselves, painted the wall black, bought some shelves for $150 and put them in the place. MDF is pretty cheap.
even drinks are not performing well to especially coca cola
Footnote : Examine your data, as always, before making decisions and take into account season vs non-season. This turnover has to be replaced if it makes up a significant part of the business.
I quit cigarettes some five years ago and have never looked back. Not withstanding having a Woolies next door I would have given them the punt anyway as I couldn’t justify the margin on what is essentially a diminishing market.
I pulled the old fixtures off myself, put up a clean sheet of black slatwall and display all my ink & toner in the same highly visible premium area of my shop. I haven’t looked back. I sell more ink for greater margin than I ever did on smokes and if the volume isn’t there why pursue it? I don’t think smokes are a good fit in my shop and don’t miss it at all.