Cigarette Sales Are Under Pressure as Consumers Grapple With Inflation

Cigarette prices surged by 8.5% due to inflation, impacting consumer spending on nonessentials. Despite consumer resilience, retailers expect continued pressure on cigarette volumes. Spending on tobacco is down, leading to shifts towards cheaper cigarettes and alternative nicotine products. Retailers are advised to allocate more space to e-cigarettes and oral nicotine products for higher profits. Altria is gaining market share in this evolving landscape, signaling a trend towards smoke-free alternatives. This shift highlights the need for retailers to adapt their tobacco sets to meet changing consumer preferences and improve profitability amidst industry challenges.