Contraband tobacco is one of the most serious issues facing convenience store operators in Canada. In 2009 the sale of contraband tobacco product caused losses of 2.5 billion in sales or $260 million in profits for convenience store operators. They also impact directly on government tax revenues.
In 2009 Canada saw the loss of 2300 convenience stores and contraband tobacco sales losses were a major contributor.
Tobacco products have been impeded by many factors. The health issue is one and legislated fixturing display cover-ups have contributed strongly to not promote sales in C-Stores. This with the impact of the nationwide We Expect ID campaign to not sell ANY age-restricted product to minors is also having significant effect.
There are over 4-million people aged 15-25 in Canada today - roughly 12% of the total population.
As part of the 10%-2010 Contraband Objective Campaign led by the Canadian Convenience Stores Association (CCSA) the organization has embarked on a nationwide media awareness campaign which has met with good success.
The objective is to reduce contraband sales to 10% of tobacco product sales by the end of 2010.
The campaign includes a major effort to gain support from federal members of Parliament in all ridings to help eradicate the problem in local communities. A key component has been to raise the awareness of the numbers of minors being able to purchase these illegal products.
Convenience store operators are united in working to reduce this significant problem and are working with police forces, government agencies and the media in every way. The impact of providing cheap cigarettes daily by criminals to a young, malleable market is happening literally in the backyards of communities. Our efforts are focused towards eradicating the smuggler's market and this illegal trade.
Studies on cigarette butts as well as leaflets to MPs can be downloaded from the website which is devoted to this campaign act www.10-2010contrabandobjective.com.
Focusing on the Female Perspective in C-stores
All CCSA associations have received presentations of the 2009 State of the Industry report for retailers, distributors and manufacturers.
The rise in consumption of contraband tobacco is the main reason behind the rapid increase of C-store closures across Canada. In 2009, 1 out of 10 convenience stores closed. Most of the closures occurred in Quebec, Ontario and the Atlantic provinces.
Merchandising directly impacts on generating in-store traffic first and that should translate into in-store sales. Merchandising creates the ambiance to attract people to enter the store, and once inside, that same merchandising must not just create a good first impression; it also must sustain and leave a positive last one!
