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Nov./Dec. 2000 |
Smokeshop Industry Report (page 3) 
Informational web sites were the most popular (33%), offering basic information about the retailer and its products, but offering no provisions for sales transactions, inventory, or prices. Stores that added merchandise prices to their website accounted for 29% of all those with websites (versus 14% in 1998). Retailers who also have a provision for customers to place orders through the website - either through email or online forms - rose from 12% in 1998 to 30% in 1999. The most sophisticated e-commerce sites, which link live inventory status to online shopping, was reserved to only 6% of retailers with websites, up from 4% in 1998.
Given the increased competition and the softening of the cigar market, it was not surprising to see stores putting more resources into promotion. Newspapers were the leading choice for advertising, with 72% of surveyed stores running newspaper ads. Radio was utilized by 40% of stores, direct mail by 36%, and magazines by 21%. Newsletters were published by 28% of respondents. Among the media used by the 42% of stores listing "other" advertising media were television (including cable), yellow pages, billboards, mail coupon books, community theatre programs, free community papers, and through other businesses such as casinos and hotels.
Computerization continues to make inroads in retailers point-of-sale equipment, with 59% reporting the use of an electronic cash register and 16% utilizing a PC-based POS system. Keeping the old fashioned flair of the classic cigar shops alive were the 25% of retailers utilizing mechanical cash registers. At least a few of these respondents proudly noted their machines were true antiques (whose maximum sale total topped out at under $10).
Among our sample, 79% of stores were members of the RTDA, compared to 96% in 1998.
SMOKESHOP - December 2000 
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Credit card acceptance was nearly universal in 1999, with 98% of all stores surveyed accepting either MasterCard or Visa (compared to 91% in 1998); 86% accepting American Express cards (versus 76% in 1998); and 82% taking Novus cards (66% in 1998). A minimum purchase amount was required by 22% of those surveyed, and 16% of retailers offered some type of in-store credit or house account.
The number of retailers holding cigar events fell in 1999 to 51%, down from 62% in 1998, but close to 1997 levels. Membership clubs held steady, offered at 10% of retail stores.
The typical smoke shop customer profile has not changed dramatically from the previous survey. Male customers outnumber female customer by a 3-to-1 margin. The age breakdown has also held nearly steady, with the largest age group being 35-45-year-olds (37%), followed by 22- to 34-year-olds (24%), 50- to 64-year-olds (21%), those 65 or older (10%), and lastly customers under 21 (8%).
The size of the typical store staff - including owner/operators - increased slightly in 1999, with stores reporting an average of 2.4 full-time employees (same as 1998), and 2.8 part-time employees (up from 2.4 in 1998.) The average hourly wages for full-time employees was $10, compared to $9.44 in 1998, and for part-time employees $7.50, up from $7.08 in 1998.