SLR p22-31 Awards Jun09.qxp 01/06/2009 10:24 Page 30
inside business
MASTERPLAN FOR PROFIT 2009
MT83MT76MT82MT65MT87MT65MT82MT68MT83MT50MT48MT48MT57
TOBACCO
Eliminating out of
stocks key to success
Avoiding out of stock situations for leading tobacco brands is vital for independent
retailers. As the biggest tobacco company in the UK, Imperial Tobacco is well
placed to offer some sounds advice on managing the category well.
A
voiding out of stock situ- equivalent to 3 days
ations for leading trade per year due to
tobacco brands is vital tobacco out of stocks
for independent retailers. alone.”
Consider the following facts to “Local Imperial
see exactly why: Tobacco representative
lThe average independent are happy to offer help
store’s turnover is £300,000 and advice to retailers
lTobacco typically accounts for on reducing out of stock
between a quarter and a third situations in the tobacco
of sales or £72,000 category.” [Source: HIM
lThe average independent CTP, Albemarle, Rep
store’s tobacco out of stock rate visit data]
is now 5.8%
RYO is in great lA 5.8% out of stock rate will TOBACCO IS A
growth, especially cost the store around £2,400 FOOTFALL DRIVER
among female turnover per The tobacco category is
smokers. year a renowned driver of
l This is the footfall and an impor-
equivalent of tant catalyst for impulse
closing your purchases from other
store for 3 categories such as confec-
days! tionery and soft drinks.
Adult smokers visit stores regional variances, so keeping
Iain Watkins, more often than non-smokers, up with sales trends will
trade commu- 4.4 times per week compared to ensure an appropriate range is
nications 3.8. They spend more while in stocked
manager at store and drive sales in other 2. Understand that local really
Imper- categories. [Source: means local in tobacco – over
ial Tobacco, HIM CTP] 60% of an average indepen-
comments: dent retailers tobacco turnover
“Recent figures IMPERIAL comes from people living
gathered by our TOBACCO’S 5 within just 440 yards of the
field sales force STEPS TO shop
shows that the SUCCESS 3. Understand the importance of
average out of Imperial Tobacco complying with tobacco legis-
stock rate in recommends retail- lation
independent ers use the follow- 4. Understand the importance of
retailers now ing tips to effec- a full, well-merchandised
stands at 5.8%, tively manage their tobacco unit in accordance
considerably tobacco category: with the preferences of adult
higher than 1. Understand the smokers
other trade need to keep up 5. Understand the value of adult
channels. An with local trends in smokers as customers – they
average store the market place. visit stores more often than
will suffer a loss Tobacco is a cate- non-smokers and spend more
of turnover gory with huge whilst they are there.
30 l SCOTTISH LOCAL RETAILER l JUNE 2009 WWW.55NORTH.COM
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