The increase of federal and state cigarette excise taxes will have a far-reaching, negative impact on the convenience store industry. With the exception of petroleum products, no other category is more vital to the industry’s success than tobacco products. Given that cigarettes represent 30-45% of c-store inside sales, the deterioration of this category will have
January could not end soon enough. The industry hasn’t seen such a tumultuous month since November 1998 when Congress first turned to tobacco as its financial panacea. Big Brother was at it again last month with the U.S. Senate passing the State Children’s Health Insurance Program (SCHIP)—including all of the cigarette and tobacco tax rate
In an effort to boost sales in the smokeless category, Pilot convenience stores in the Knoxville, Tenn., market are testing the Vegas E-cigar, a product manufactured by Minneapolis-based Ruyan America Inc. that looks and feels like a premium cigar, but uses a microchip and nicotine-infused liquid to produce a vapor that provides its user with
Cigarettes continue to be the top in-store category based on sales dollars. On a monthly basis, the industry per store average over the past year was $39,127. However, its gross profit contribution slipped to 3.2% to $6,152 falling behind package beverages ($6,526), according to the National Association of Convenience Stores State of the Industry report.