Walmart observations

[storewanderer]

I have seen cigarette shops in shopping centers right next to Walmart in many cities in Northern California. The problem is that they are suffering from a lack of business. One shop near me now advertises only e-cigarettes. That also is dying out. The store is open very limited hours now. The bans on flavored e-cigarettes really reduced their business. Many people now are getting flavored e-cigarettes online. So few people smoke now, that it is difficult for these shops to survive even next to a busy Walmart.

As of this time there is still a good amount of tobacco sales potential in a lot of northern California. I could see how there isn't much demand anymore in the bay area but once you exit the bay area there is still a surprising amount of demand. The more rural you get, the more demand. And Wal Mart does reach some of those rural locations like Oroville, Susanville, Redding, etc.

[J-Man]

Doesn't Sam's Club still sell (relatively cheaper) cigarettes?

[Alpha8472]

Sam's Club used to sell cheaper cigarettes, but again if they have to spend so much labor restocking, getting rid of expired products, carding customers, etc. the profit on these cigarettes is very low.

The Sam's Club has a pharmacy. Again, the customers with CVS Caremark insurance will be charged higher copays if the store sells tobacco products. The store needs the pharmacy to be competitive or else those customers would choose another pharmacy and the store would lose out on sales. The pharmacy draws in customers who spend tons of money in the rest of the store. Tobacco does not draw in customers like it used to. Weighing the pros and cons, the pharmacy is more likely to draw in more customers and sales. Getting rid of tobacco will not reduce customer counts by much. You can get discounted cigarettes at many discount cigarette shops for about the same price.

[arizonaguy]

Doesn't Sam's Club still sell (relatively cheaper) cigarettes?

Sam's Club discontinued tobacco sales at all of the stores in the Phoenix area (like Costco did a few years ago).

At my local store the area where the tobacco used to be was initially vacant, then it was a covid vaccine seating area (for waiting 15 minutes after the vaccine), then it is now simply more product space (new steal racks have been put up in the area and the cage around the area has been removed).

[arizonaguy]

Sam's Club used to sell cheaper cigarettes, but again if they have to spend so much labor restocking, getting rid of expired products, carding customers, etc. the profit on these cigarettes is very low.

The Sam's Club has a pharmacy. Again, the customers with CVS Caremark insurance will be charged higher copays if the store sells tobacco products. The store needs the pharmacy to be competitive or else those customers would choose another pharmacy and the store would lose out on sales. The pharmacy draws in customers who spend tons of money in the rest of the store. Tobacco does not draw in customers like it used to. Weighing the pros and cons, the pharmacy is more likely to draw in more customers and sales. Getting rid of tobacco will not reduce customer counts by much. You can get discounted cigarettes at many discount cigarette shops for about the same price.

It seems that with the rise of vaping there also has been a rise in discount tobacco shops many of which sell only tobacco / vaping products. Also, at least here in Phoenix, tobacco can be purchased on Native American reservations without incurring state / local taxes (so cigarettes tend to be $1 - $3 per pack cheaper).

[Brian Lutz]

Over the past few days I have been to a couple of different Walmarts in the area (Lynnwood and the Highway 9 store in Marysville) and it appeared that both were still selling cigarettes, at least for the time being. It is possible that they are selling through remaining stock and will discontinue cigarette sales when they run out, but for now there are still cigarettes and other tobacco products for sale in those stores. Both stores also keep liquor behind the same counter, so it is likely that they would just take over the space with more liquor if they stopped selling tobacco.

[Alpha8472]

My local Walmart is playing Christmas music and advertising for back to school at the same time.

[storewanderer]

Sam's Club in Reno no longer sells tobacco. The area is now a cage for storage of high value electronics.

The Wal Marts still seem to have tobacco. Since that register seems to be the only regular checkstand open in most Wal Marts around Reno with a very long line, and for some reason many groups of 5-8 people with multiple screaming shoeless kids like to go shop at Wal Mart and check out at that register, I didn't get close to it to observe inventory levels of the tobacco.

[Alpha8472]

I assume that Sam's Club probably caters to those who buy in bulk. If it is cheap, the tobacco products will sell out faster. It would take longer to sell the remaining and more expensive tobacco products at Walmart. I have a feeling that Walmart is planning on phasing out all tobacco products so that they can get a reputation for the lowest copays compared to other pharmacies. Once all of their stores stop selling tobacco, the CVS insurance copays will be reduced at Walmart pharmacies.

[retailfanmitchell019]

My local Walmart is playing Christmas music and advertising for back to school at the same time.

It's not even Halloween yet!
Only at Walmart, folks.