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Nov/Dec 2002 |
Smokeshop Industry Report (page 2) 
Among boxed sales, those over $100 comprised the largest segment, accounting for 37% of all boxed cigar sales, followed by the $75-$99 segment (26%) and $40-$74.99 (23%). Among single stick sales, those in the $4.50-$6.99 range commanded 36% of all single stick sales, followed by the $1-$4.49 segment (27%) and then the $7-$9.99 segment (25%).
Overall, cigarette sales in smoke shops are consistently higher today than they were six years ago, while pipe and pipe tobacco sales have been something of a mixed bag among retailers, rising and falling in our annual surveys. Last year, it seems the elusive "pipe boom" didn't materialize among our survey sample, with sales in this category down from 2000. Price points of pipes shifted to somewhat higher categories among retailers in this year's survey, with pipes over $25 accounting for 5% more sales in 2001 than in 2000. Stores that reported handling estate pipes (32%, up from 31% in 2000) sold an average of $2,397 worth of merchandise last year in this category, considerably less than the $3,526 average reported for 2000.
Only 51% of the sampled stores classified themselves as selling strictly tobacco merchandise in 2001, compared to 80% in our 2000 survey, Since non-tobacco merchandise claimed a higher percentage of total store sales among our respondents, it seems that gifts, sundries, and other types of merchandise are becoming increasingly important to many smoke shop's bottom line.
Magazines and newspapers (.8%) and Candy & Gum (.6%) " once the epitome of the old fashioned cigar shop. " seem to be down for the count as far as of having any significant contribution to store sales, having lost most of their share over the past decade. In-store beverage offerings, on the other hand, continued to rise, with 64% of stores reporting they offer at least some type of beverage for consumption on-site, either complimentary (36% of shops) or for purchase (24% of shops). Most popular was espresso or espresso-based beverages such as cappuccino (45% of surveyed stores), followed by brewed coffee (45%), and soft drinks (13%). Other beverages, which included water, Italian sodas, beer, wine, port, or a full liquor bar, were offered by 17% of surveyed stores.
The vast majority of the surveyed smoke shops were independent stores (86%), 8% were part of a chain, and 5% were franchises. After S-Corporations (32%), proprietorships (28%) were the most common store ownership type, followed by C-Corporations (27%) and partnerships (9%). Most shops were located in urban settings (58%), followed by suburban shops (38%), while only 5% were located in rural regions. Strip malls were the dominant site for shops (58%), followed by stand-alone shops (29%) and mall shops (21%).
 Continued...
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In the humidor category, less expensive models continue to wield their clout: 70% of all units sold among our survey sample were priced under $149, with 41% retailing for under $74.99. Stores reported an average annual humidor business of $19,613.
Lighters held a nearly equal share of all merchandise sales in both 2000 and 2001, dipping only slightly to 4.7% last year from 4.9% in 2000. In terms of dollar value, however, stores reported an average of $30,893 in annual lighter sales last year, compared to $26,145 in 2000.
This year's survey participants showed a big jump in sales revenues that came from sources other than walk-in customers (77% for 2001 versus 93% in 2000). Internet sales accounted for 6% of sales revenue, while mail order catalogs accounted for 5%. Stores on average attributed 11% to "other" sources in 2001, up from 1% in 2000.