According to researchers, this decline indicates a decreasing reliance on tobacco sales by corner shops and other small businesses. A team led by researchers from Edinburgh analyzed sales data from nearly 1,400 convenience stores in England, Scotland, and Wales. They compared typical weekly transactions in March, June, September, and December of 2016 to those of the same period in 2019.
In addition to tobacco products, the team also evaluated the sales of other frequently purchased items from convenience stores, including milk, bread, newspapers, and alcohol. Their investigative findings revealed a 47% decline in tobacco product sales over a three-year period. In 2016, only 11% of transactions involved tobacco, but that number decreased to 6% in 2019. The percentage of sales including both tobacco products and other items also decreased from 14% to 9%.
Although convenience stores saw a 16% decrease in average weekly sales between 2016 and 2019, tobacco products experienced a more significant drop in sales than any other merchandise. The next largest decrease was seen in newspaper and magazine sales, which decreased by 25%. In contrast, some products such as e-cigarettes, alcoholic beverages, and spirits saw an increase in sales over the three-year period. Despite a significant increase in the prices of tobacco products within this timeframe, their share of the store's total weekly revenue from sales dropped by 8%, going from 47% to 39%.
According to the team, the reliance of retailers on tobacco sales is declining in all regions of the UK. Stores in urban areas and economically deprived areas contribute more to weekly sales and overall tobacco product revenue than rural or affluent stores. However, over time, the decline in sales is greatest in these particular stores, narrowing the gap between regions. While tobacco products have been deemed necessary for the survival of convenience stores nationwide in the past, our new research suggests that tobacco is increasingly important for the business model of small retailers, weakening the argument of the tobacco industry. The survey results highlight the need to reduce the supply of local tobacco products to achieve the government's goal of eliminating smoking in the next decade.
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