Among credit card acceptance, Discover/Novus (80%) edged out American Express and related cards (73%) for the first time in our years of tracking. The number of shops offering in-house or store terms fell to 7% from 13% in our last survey.

Money appeared tight for promotional budgets. In 2002, 21% of surveyed stores said they did no advertising at all, up from 13% in our 2001 survey. Direct mail was the most popular media choice (used by 30% of surveyed shops), followed by newspaper ads (27%) and radio (13%). "Other" categories accounted for 40% of advertising efforts. Only 9% of stores surveyed used mail order catalogs.

Promotional events remained popular, with nearly half of all surveyed stores holding in-store cigar events (48% in conjunction with a manufacturer), for an average of four events annually. Off-site cigar events with a manufacturerıs involvement were reported by 39% of surveyed shops, at an average of two events annually.

Pipe events also remained popular: 11% of stores reported holding in-store pipe events with a manufacturer, 13% with no manufacturer involvement. Off-site pipe events remained limited in scope: only 2% of stores reported holding one in conjunction with a manufacturer. The average number of pipe events held annually remained low, on average one event per year among our sample.

Memberships clubs were offered by 8% of surveyed shops, compared to 9% in 2001, while in-store smoking lounges were available in 42% of the surveyed shops, compared to only 53% in 2001.

Walk-in humidors were utilized by 53% of the surveyed shops; 33% reported using humidified display cases, while 4% humidified their entire store.

Electronic cash registers were used by 54% of the surveyed retailers in 2002, while the use of computer-based POS systems jumped from 23% in 2001 to 32% last year among our sample. Mechanical cash registers continue to become rarer each year, used by only 8% of stores in 2001, compared to 18% in 2001.

The typical smoke shopıs customer base remained predominantly male (69%) and between 35 and 49 years old (38% of all customers). The next-largest age group was 22­34 year-olds (25%).

Typical staff sizes averaged 1.5 full time employees per shop and 2.4 part-time employees. Full and part time employees earned an average of $10.60 and $8.00 per hour, respectively. The majority of employees were male (70%).

Among the sample, 68% of the stores were RTDA members, while 24% belonged to other trade groups, including NATO (12%) and the TAA (8%).

For for first time in our survey, we asked retailers about their best performing cigar brands, and the results were largely in keeping with recognized trends. Among the surveyed sample, the top selling brands in 2002 were Arturo Fuente, Macanduo, and Punch, in order. Stores that introduced new brands onto their shelves in 2002 reported that Drew Estates Acid, Cusano, Camacho, La Aroma de Cuba, and Perdomo brands were their best-selling new cigars.

For most, performance results for the year were respectable, but the frustrations of legislatures attacking smokers and business with high taxes and outright usage bans is clearly evident among many bewildered retailers.

"I figure my business is down 30 percent from last year, all due to the outrageous taxes on tobacco and idiotic laws of no smoking in workplaces, restaurants, and bars," wrote one angry East coast retailer. "New York State laws will eventually put me out of business. I am considering moving my shop to a more business friendly state." Challenges remain.