Understanding why some Australian retailers have stopped selling tobacco, some might and some are unlikely

Abstract

BackgroundWidespread availability of tobacco has been shown to contribute to ongoing smoking and make quitting harder. This study investigates why some retailers in three Australian states decided to stop selling tobacco, others might stop selling and why others continue to sell in a declining market.MethodsA telephone survey of 4527 randomly selected retailers was conducted in August 2018 (response rate=72.4%). This study examines responses to open-ended questions in the survey probing retailers’ attitudes and beliefs regarding selling (or not selling) tobacco.Results27.3% of the sample sold tobacco, and 13.3% had formerly sold. Outlets that had stopped selling most frequently mentioned minimal profit and/or sales as the reason for stopping selling (27.7% across all states). This was also the most frequent reason why retailers said they might stop selling. Uniquely in Western Australia (the only state in the study with a fee-based licensing scheme), 12.5% of former tobacco retailers named tobacco licensing as the reason for stopping sales—the second most frequent reason in Western Australia. Of current sellers who were unlikely to stop, the potential to lose sales was the most frequently named reason (31.0% across all states).ConclusionRetailers report being driven by the profitability of tobacco when deciding whether or not to stop selling, although only a small percentage discussed losing incremental sales if they stopped selling. An annual licence fee contributed to some retailers stopping selling, showing that a fee-based tobacco license can contribute to a decline in retail availability of tobacco.

‘Friends with benefits’: how tobacco companies influence sales through the provision of incentives and benefits to retailers

“…Although participants were not asked how they perceive the benefits received and their value to their business, the financial benefits received may indirectly help alleviate the economic burden currently faced by many Australian small retailers, amid the sustained downturn in retail sales 22 23. For retailers that may be considering stopping selling tobacco, the loss of such financial (or other) incentives may present an important barrier to stopping selling24 despite not being explicitly reported as a primary motive for continuing to sell 12…”

“…Second, alcohol licensed outlets were excluded in NSW, since they had previously been surveyed in a comparable study 11. The sampling method has been published elsewhere,12 but is summarised here.…”

Accessing the most lethal product on the market: community perceptions of tobacco accessibility in NSW, Australia

“…12 Some retailers in Western Australia that stopped selling tobacco products cited the feebased tobacco licence as a key factor in their decision. 5…”

“…[2][3][4] In NSW, there are an estimated 10 000 tobacco retail outlets, and without comprehensive tobacco supply-reduction policies, it appears that very few retailers stop selling tobacco. 5 Access to tobacco retailers has been shown to be high in NSW, with previous research indicating that almost three-quarters (74.1%) of current smokers in NSW reported living within walking distance of a tobacco retail outlet 2 , and a 2016 study finding an average of 17.7 tobacco retailers per NSW postcode. 6 However, there have been no studies examining community perceptions of the retail accessibility of tobacco in NSW since 2010.…”

It is time for governments to support retailers in the transition to a smoke‐free society

“…Third, establishing a timeframe for ending general retailing of tobacco products as consumer goods will provide certainty for retailers and facilitate planning for business model adaptation, a process governments could actively support. Research shows ethical and/or commercial and economic factors can motivate some retailers to stop selling tobacco voluntarily 13 . However, encouraging individual retailers to voluntarily delist tobacco through education campaigns or economic levers, such as licensing fees, will have limited impact and may delay more effective measures.…”