Tobacco mythbusting—tobacco is not a major driver of foot traffic in low socio-economic small retail stores

Abstract

BackgroundOne of the opposing arguments to restricting or banning the sale of tobacco products stem from a perception that this would adversely impact on small retail stores that rely on tobacco sales for viability. It has also been argued that purchases of tobacco leads to unplanned purchasing of other items that yield income for small store owners. This study tested the veracity of these arguments in the Australian context.MethodsConsumer intercept surveys (n=1487) were conducted outside a comprehensive sample of small stores (n=136) selling tobacco in lower socioeconomic suburbs. Data were collected over a 2-hour period outside each store using the same methodology (36% consumer response rate). Descriptive statistics examined the proportion of tobacco and non-tobacco purchases and most common products purchased.ResultsPurchasing tobacco was the primary motivation for store visits for only 3% of consumers. The vast majority of products purchased (92%) were not tobacco, with hot food, groceries and lottery tickets most frequent. Only 8% of consumers purchased tobacco. When unplanned purchasing patterns were compared, consumers’ who purchased tobacco were no more likely to buy other products.ConclusionTobacco purchasing was rarely the reason for store visits, indicating that it is not a key driver of consumer foot traffic for small retailers. There was also no evidence that tobacco contributes to spontaneous purchases of other products that might bring retailers profit. Findings suggest that restricting the retail availability of tobacco would be unlikely to have a pronounced negative impact on small retail stores.

Retail endgame strategies: reduce tobacco availability and visibility and promote health equity

“…[105][106][107] Indeed, studies from Australia, New Zealand and the USA found that sales transactions with tobacco products represented a smaller fraction than industry estimates, and tobacco manufacturers and retailer associations overstate retail profits from tobacco. [108][109][110][111][112] Further evidence to refute industry claims may encourage retailers to abandon tobacco and transition to more profitable product lines, 113 reducing both the oversupply and visibility of tobacco products. Additionally, policies that prohibit tobacco industry contracts and incentives to promote and sell tobacco products in the retail setting are needed.…”

“…More evidence is needed to refute tobacco industry opposition to retail regulation,103 104 including studies that both debunk industry ‘footfall’ claims about tobacco driving customers to stores and highlight success of retailers who abandon tobacco sales 105–107. Indeed, studies from Australia, New Zealand and the USA found that sales transactions with tobacco products represented a smaller fraction than industry estimates, and tobacco manufacturers and retailer associations overstate retail profits from tobacco 108–112. Further evidence to refute industry claims may encourage retailers to abandon tobacco and transition to more profitable product lines,113 reducing both the oversupply and visibility of tobacco products.…”

Is tobacco a driver of footfall among small retailers? A geographical analysis of tobacco purchasing using electronic point of sale data

“…The significance of tobacco footfall is also likely to differ between retailer types. 14 These retail data do not include information about customers and so could not capture shoppers' characteristics, motivations for visiting stores or frequency of purchasing. In the analysis, baskets containing tobacco were presented as an indicator of tobacco's role as a footfall driver and non-tobacco products purchased alongside tobacco were presumed to be 'secondary purchases'.…”

“…7 14 Consumer intercept surveys of shoppers exiting stores in case study areas in the USA, New Zealand and Australia have found that just 8%-14% of transactions contained tobacco. [14][15][16][17] Additionally, tobacco shoppers did not necessarily make significant 'secondary purchases' as 60%-64% of these shoppers bought tobacco alone. [15][16][17] A 2015 analysis of point of sale data in the UK indicated that tobacco was purchased by a minority of shoppers, was often purchased alone and the value of any nontobacco copurchases was similar to that purchased by shoppers who did not buy tobacco.…”

“…Tobacco has been one of the products most commonly cited as motivating a visit to a convenience store in the UK 13. Recent research has, however, begun to challenge some aspects of the tobacco industry narrative regarding the role of tobacco footfall in small retail businesses 7 14. Consumer intercept surveys of shoppers exiting stores in case study areas in the USA, New Zealand and Australia have found that just 8%–14% of transactions contained tobacco 14–17.…”