The Impact and Role of Tobacco and E-Cigarette Sales in Retail Stores

Sep.02.2022
The Impact and Role of Tobacco and E-Cigarette Sales in Retail Stores
A study in the US INFORMS magazine examines the effects of retailers abandoning product categories, such as tobacco.

A study titled "What Happens When Retailers Abandon Product Categories?" published in the marketing science journal INFORMS, has found that tobacco products play a significant role in driving foot traffic to physical retail stores. The research also highlights the negative microeconomic effects that bans on tobacco can have, whether voluntary or mandated.


On one hand, ceasing the sale of electronic cigarette products could potentially lower foot traffic from that customer base and trickle down to other categories of sales. On the other hand, a store's voluntary decision to end tobacco sales could attract more non-smokers to their establishment and offset any losses from discontinuing that category of sales, the researchers stated. "However, in regards to tobacco specifically, our results suggest that the short-term gains retailers receive from prohibiting tobacco sales do not appear to outweigh the economic losses associated with these actions.


A recent study focused exclusively on early adopters of electronic cigarette shops found that these shops play a crucial role in supporting smokers in transitioning to safer alternative products. Researchers interviewed 22 customers recruited from electronic cigarette shops in the East Midlands region of England by telephone, exploring the participants' smoking history, reasons for using electronic cigarettes, the role of electronic cigarette shops in electronic cigarette use, and whether quitting smoking was discussed in the electronic cigarette shops.


According to the survey, respondents view e-cigarettes as a smoking cessation tool and reported very positive experiences with vaping. Participants found e-cigarette shops to be crucial to their positive experiences as they provided access to information and recommendations for various high-quality and reliable products.


Store employees have generated a sense of loyalty among customers and, along with other electronic cigarette users, have created a network that supports the use of e-cigarettes. While e-cigarette shops are not typically seen as places that offer smoking cessation advice, many consider them a potential source of support in quitting smoking.


The study concludes that electronic cigarette stores play an important role in reducing tobacco harm, and that their potential could increase if their service model could expand to help smokers quit smoking.


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