Illicit tobacco sparks store closure threat

The damaging impact of illicit tobacco sales on local communities has been laid bare by a new survey which reveals that almost 60% of retailers are aware of illicit tobacco being sold in their communities, while more than 80% believe it poses a threat to their business.

The survey of hundreds of Tobacco Retailers’ Alliance (TRA) members also found that 13% of retailers are considering closure as a result of the impact of lost tobacco sales on their businesses, as smokers buy from cheaper illicit sources.

Independent retailer Dev Aswani of Jasmines in Brynhyfryd, Swansea, told C-Store he was “worried” about what the future would hold for his 24-year-old business. “Tobacco accounts for around 40% of my sales but I am losing more and more of them to cheaper illicit products. I know this as my rolling paper sales are high while loose tobacco sales are in decline,” he said.

“But sales have picked up a little in the last month due to all the problems at the French ferry ports and Eurotunnel which meant it has been much harder for criminals to smuggle their illicit hoards.”

The survey also found that almost one in four store owners have considered reducing staff due to the impact of the illicit trade on their business.

A large number of retailers are also being targeted by illicit tobacco dealers, with almost one in five saying they have been approached by someone asking them to sell smuggled or counterfeit tobacco products in their stores.

Blackburn retailer and TRA national spokesman Suleman Khonat said: “Every pack of cigarettes sold by these unscrupulous traders means one less sold by legitimate independent retailers - putting many small businesses, which are at the heart of their communities, under real threat of closure.”

Almost 40% of UK rolling tobacco sales are illicit, according to mid-point estimates from the 2014 edition of HMRC’s Measuring Tax Gaps survey, while illicit products account for 9% of UK cigarette sales.