Challenges for tobacco retailers are pressuring them to diversity in order to maintain traffic and revenue. More and more specialty tobacco retailers are expanding into categories that are traditional for newsagencies. This is a challenge for some newsagents not geared to deal with more competition.
I am seeing it myself from two tobacco retailers less than fifty metres from one of my newsagencies. They have expanded into cards and several lines of gifts that compete head-on with what I have.
I don’t begrudge the expansion of range by tobacco retailers as engaged newsagents have been doing this themselves for years, taking business from gift shops, toy shops and other specialty retail.
My concern piques when I see newsagent suppliers placing products in a nearby tobacco retailer that the newsagent already stocks. Newsagent suppliers ought to respect their long-term customers.
In several cases in the last week suppliers have done this, they have placed products in tobacco retailers close to newsagents who already have the same products from the suppliers. While one could argue the two businesses serve different customers, in the locations of which I am aware this is not the case. Shoppers from the street can walk past two businesses and see the same stand in each.
I get that it is a competitive marketplace – for everyone. Suppliers do themselves no favours if they place product into businesses competing with retailers who stock their product nearby. That will not end well.
When this happens to me, my view is to reduce support for the supplier and shift focus to a supplier who is more respectful of my business. That in itself leads to regular change and change is good.
Newsagents with specialty tobacco retail located nearby – keep a watch for moves they make. It could be that pre-emptive action now protects you into the future.