By
Nick Tabor, New Era Senior Staff Writer
Four
months after stocking their coolers with beer and their shelves with wine, the
Dollar General corporation now plans to introduce cigarette sales as well.
It’s
a “dying category,” said Mary Winn Gordon, vice president of investor and
public relations. But for now, store managers are reporting that customers want
them. So even if it only creates a one-time “bump” in revenue, Dollar General
will take it.
Some
Crofton residents are already boycotting the store just outside their town’s
boundaries because it sells beer and wine. They’ve mostly given up the fight to
have the store’s alcohol license revoked.
So
the introduction of tobacco products is basically moot to them.
“Dollar
General is simply responding to the accepted societal norms in this nation,”
Senior Pastor of Cornerstone Bible Church Kris Page said in a written
statement. “The effort to boycott this store is not going to change the
principle of supply and demand. The only way to change the current climate of
the American marketplace is to confront the desires of the consumer through the
teaching and application of Biblical truths in our churches, homes and
schools.”
Crofton
Bestway, an independent grocery store, now has an alternative for the
boycotters: an aisle full of canned food, paper products and other merchandise,
all priced below $1. And it has never stocked synthetic drugs or condoms, let
alone beer or wine.
“Being
a family store, we actually try to respect the community,” said the owner,
Hemal Patel. “We don’t even have a lottery in the store.”
But
the store does sell tobacco — it even guarantees the town’s best prices — and
this hasn’t created the same kind of stir.
Crofton
residents missed their chance to protest when Dollar General applied for an
alcohol sales license in June. The application sailed through, and the news
surprised and upset the small community in September. No stores sold alcohol
there beforehand.
In
a Dec. 11 earnings call, Dollar General officials said they would roll out
tobacco products over two quarters, which means most or all stores should carry
them by mid-year.
In
the test market, customers commonly increased their basket amounts from $10 to
$14 in the stores that carried cigarettes. That increase is less than the
average cost of a pack, which suggests customers were foregoing something else
to buy cigarettes, said Richard Dreiling, the corporation’s CEO. But it also
tends to increase traffic, he said during the earnings call.
He
also predicted the extra revenues it generated will die out before too long.
But the company is responding to its clientele.
A
report from the U.S. Centers for Disease Control and Prevention support
Gordon’s remark about the “dying category.”
Cigarette
consumption in the U.S.
has dropped every year since 2000, when it totaled 435.6 billion cigarettes.
Five years later, it was down to 381.1 billion. In 2011, it totaled 292.8
billion.
But
Kentucky is
holding strong. The CDC estimates that 25.2 percent of the state’s adults
smoke, compared to a national median of 18.2 percent.
Kentucky retains the
highest rate of smoking-related deaths and the highest ratio of youth aged 12
to 17 who use some form of tobacco, the CDC reports.
Dollar
General has 393 Kentucky
stores, according to its website.
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