Walmart observations

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Re: Walmart observations

Post by storewanderer »

Alpha8472 wrote: August 3rd, 2021, 10:00 pm Walmart has completely stopped selling cigarettes and e-cigarettes. It is shocking. Does anyone smoke anymore? Where do the cigarette smokers go now for cheap cigarettes?
Is this everywhere or just certain locations? What about Sam's Club?

Cigarettes are difficult for a big box store. Lots of theft. It would be easier for all involved if Wal Mart stopped selling cigarettes.

Gas stations will continue to sell and promote cigarettes.
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Re: Walmart observations

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I just noticed the change in the past few days. Perhaps it has been longer. I did not see any cigarettes at any nearby Walmart store. I suspect that it is due to CVS Caremark's rule that they would charge patients higher copays on prescriptions at stores that sell tobacco products. Walmart wants the lowest copays to attract customers, so they decided to stop selling tobacco products.

The tobacco products were a money losing operation as people would rob the stores and shoplift tobacco products. Brazen thieves would walk right behind a counter and steal huge amounts. The Canadian Walmart stores stopped selling cigarettes due to the labor costs of restocking a product that is turning over rapidly. The return on profit was virtually nothing.

Very often the tobacco was behind the two express 20 item or less registers. People buying cigarettes would hold up the line as they tried to pick out their preferred tobacco product. It really slowed down the express lanes.
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Re: Walmart observations

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I have noticed in NV the tobacco register continues to be the only register open (other than self checkout) in the evening. But that doesn't mean there is any tobacco back there.

In fact, I think some of those tenant spaces inside Wal Mart may be a good spot for an independent tobacco retailer to set up shop if Wal Mart wants to exit this category.

Not sure on Sam's- https://www.samsclub.com/b/cigarettes-tobacco/1580

I still remember the self serve cigarettes. Raleys had them on an endcap near checkout. Or they were somehow accessible if not self serve. Back when I used to get to sit in the kid seat in the cart, I remember being in the cart and waiting in what was too long of a line in Raleys, taking a pack not knowing what it was, and throwing it into the cart and it was not discovered until we got home. Good times.
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Re: Walmart observations

Post by Super S »

Alpha8472 wrote: August 4th, 2021, 12:22 am I just noticed the change in the past few days. Perhaps it has been longer. I did not see any cigarettes at any nearby Walmart store. I suspect that it is due to CVS Caremark's rule that they would charge patients higher copays on prescriptions at stores that sell tobacco products. Walmart wants the lowest copays to attract customers, so they decided to stop selling tobacco products.

The tobacco products were a money losing operation as people would rob the stores and shoplift tobacco products. Brazen thieves would walk right behind a counter and steal huge amounts. The Canadian Walmart stores stopped selling cigarettes due to the labor costs of restocking a product that is turning over rapidly. The return on profit was virtually nothing.

Very often the tobacco was behind the two express 20 item or less registers. People buying cigarettes would hold up the line as they tried to pick out their preferred tobacco product. It really slowed down the express lanes.
This "tobacco" register also sometimes serves as the liquor and lottery register. Not long ago, I purchased a lottery ticket from the machine up front and won $5.00. I went to the service desk (where most stores redeem tickets) and was told I had to go to the register. The lady at the register, instead of verifying it was a winner, decided to argue with me about whether it was a winner. Ironically, I did not see the lottery machine/computer in view. It was enough of a hassle that I took my ticket and redeemed it at the convenience store nearby. Walmart should not be in the lottery retailer business if this is how they do it.
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Re: Walmart observations

Post by DFWRetaileWatcher »

Alpha8472 wrote: August 3rd, 2021, 10:00 pm Walmart has completely stopped selling cigarettes and e-cigarettes. It is shocking. Does anyone smoke anymore? Where do the cigarette smokers go now for cheap cigarettes?
Convenience stores and gas stations?
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Re: Walmart observations

Post by Brian Lutz »

Yesterday I saw a 7-eleven advertising a "special" on 2 packs of Marlboros for nearly $20. I don't smoke so I have no idea what the usual price is, but I seem to recall not too long ago seeing prices around $7-8 per pack of cigarettes. At least not in this state, there's pretty much no such thing as cheap cigarettes.
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Re: Walmart observations

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Super S wrote: August 4th, 2021, 9:20 am This "tobacco" register also sometimes serves as the liquor and lottery register. Not long ago, I purchased a lottery ticket from the machine up front and won $5.00. I went to the service desk (where most stores redeem tickets) and was told I had to go to the register. The lady at the register, instead of verifying it was a winner, decided to argue with me about whether it was a winner. Ironically, I did not see the lottery machine/computer in view. It was enough of a hassle that I took my ticket and redeemed it at the convenience store nearby. Walmart should not be in the lottery retailer business if this is how they do it.
Surprising - none of the Walmart locations here (as far as I know) have ever sold lottery. No reason they couldn't (all the supermarkets have the machines that do both scratch off and online options).

Do they actually sell more than just scratch off tickets? Reason being (as you said you didn't see a machine) - we had a small supermarket here that only did scratch offs from a machine, and their redemption machine looked much like what you'd see (this was 20 years ago) for the service desk to run a credit card through, and printed out the winning info. the same - it couldn't print any tickets for "on line" games (which you had to remember as at least one scratch ticket had an option to get a free play for the online game of the same name, so they couldn't redeem that one).

Obviously not an issue for actual liquor as that they can't sell here (just beer and things like the seltzers/wine coolers etc., not regular wine or liquor).
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Re: Walmart observations

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BillyGr wrote: August 4th, 2021, 4:08 pm
Surprising - none of the Walmart locations here (as far as I know) have ever sold lottery. No reason they couldn't (all the supermarkets have the machines that do both scratch off and online options).

Do they actually sell more than just scratch off tickets? Reason being (as you said you didn't see a machine) - we had a small supermarket here that only did scratch offs from a machine, and their redemption machine looked much like what you'd see (this was 20 years ago) for the service desk to run a credit card through, and printed out the winning info. the same - it couldn't print any tickets for "on line" games (which you had to remember as at least one scratch ticket had an option to get a free play for the online game of the same name, so they couldn't redeem that one).

Obviously not an issue for actual liquor as that they can't sell here (just beer and things like the seltzers/wine coolers etc., not regular wine or liquor).
I am not sure if the machine prints out Lotto tickets or just dispenses scratch tickets. Some machines are capable of both.
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Re: Walmart observations

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Brian Lutz wrote: August 4th, 2021, 1:51 pm Yesterday I saw a 7-eleven advertising a "special" on 2 packs of Marlboros for nearly $20. I don't smoke so I have no idea what the usual price is, but I seem to recall not too long ago seeing prices around $7-8 per pack of cigarettes. At least not in this state, there's pretty much no such thing as cheap cigarettes.
All 7-Elevens have the Marlboro banner up with the when you buy 2 packs promotion listed and some window signage as well. I think they are desperate to drive traffic. Given they have the highest gas prices around (the one near me shut off its price sign when the price went over 4.19- they are probably embarrassed) it appears they are trying other things to drive traffic. I notice some locations are as much as $1 higher than others for the Marlboro promotion too.

Given cigarettes are a dying category that will eventually go away entirely, I find it perplexing that a major c-store chain will screw around promoting cigarettes like this. Why not promote items customers will actually be buying on an ongoing basis in the store? Cigarettes were a way to drive traffic back in the 90's to a c-store and this sort of thing used to be very common, but most legitimate c-store chains have moved on from having Cigarette promotion banners all over their building and windows to focus on actual merchandise.
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Re: Walmart observations

Post by Alpha8472 »

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.
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