Retailer frustration over illicit tobacco trade

Retailers in Wolverhampton are experiencing extreme frustration over levels of illicit tobacco products in their area.

Research by JTI revealed Wolverhampton as having one of the highest amounts of illicit tobacco in the country, and in connection with Convenience Store, recently held a retailer roundtable to discuss the issue.

Retailers from the area were invited to have an in-depth conversation about the impact that the illicit trade is having on their businesses, what the local authorities have done to curb it and what they’d like to see introduced to tackle the issue.

The retailers in attendance reported daily requests for illicit tobacco and vape products, as well as offers to sell them in their stores, with one retailer approached in their local cash and carry depot by another customer, offering a supply of illicit cigarettes.

One of the panel reported that a store was selling packs of illicit tobacco for around £4 and that a regular customer had flagged this up the price of them while another says he gets asked for non-compliant vape products on an almost daily basis, often by those underage.

The retailers said those looking to purchase illicit products are a lot more blatant now and will openly ask for packs “from behind the counter” or show branded packs of cigarettes that they have purchased elsewhere despite plain packaging having been in effect since 2017. They added that customers are also coming in asking for single cigarettes, and offering up to £1.50 for one stick.

Cost of living impact

The rise in the cost of living was identified as one of the contributing factors in the increase in illicit trade. “When customers have no money, that’s when it starts. They buy the cheap cigarettes or are shoplifting. A lot of the damage was done before [the cost of living crisis] but it’s much worse now.”

The retailers added that Trading Standards should be looking at businesses that are seemingly thriving despite rising costs and a lack of grocery stock as this should be a massive red flag in current sector conditions.

“The outgoings in the shop are phenomenal - electricity and other bills have gone through the roof. So if you see a small shop like this? You should be asking, how are they surviving? How are they making money?”

Trading Standards in particular came under fire for a perceived lack of support for retailers, with many of the panel feeling that convenience stores are seen as easy targets for test purchases.

All of the retailers on the panel had been visited by Trading Standards in the recent past despite being responsible operators, however they highlighted how other stores in the Wolverhampton area were known for selling illicit products and are still trading. 

“I’ve never been done for anything illegal in 30 years of trading, it’s just not worth the hassle. But customers see the police in the store and overhear things, and the perception is that we’ve done something wrong. The stores you can get these products in, everyone knows where they are and knows that you can get cheap tobacco there but they’re still open and nothing is done about it. It’s frustrating for us as we follow the rules but others seem to be getting away with breaking them. 

“If Trading Standards cared about the illicit trade in Wolverhampton, they’d be here today.” 

Trading Standards had been invited to attend the retailer roundtable but could not participate.

Tackling the illicit trade

In terms of proposed solutions, as well as calls for more funding for Trading Standards, an easier way of reporting businesses selling illicit products was suggested, and better education at a consumer level, as many of the retailers felt there was a disconnect between shoppers and the illegal trade.

They also expressed concern about the proposed generational smoking ban. While the legislation didn’t pass in time for the General Election in July, the Labour Party has re-introduced the Tobacco and Vapes Bill and plans similar measures to “ensure the next generation can never legally buy cigarettes”. However the panel was unsure about how it would actually be implemented and if it would be effective.

“It puts the pressure on us as we have to refuse people who may be just under the age limit but still over the age of 18. They’re old enough to drink and vote but not smoke cigarettes? That’s going to cause a lot of problems in shops and it’s only going to drive people further towards the illicit trade.”

JTI also highlighted the evidence gathering that it is doing and how long it takes for it to be acted upon. “In terms of timelines, if you report something, we will investigate it. We collect the information and wait till we’ve got a group of stores within the same region. A particular case that’s just been looked at by Trading Standards with test purchases in March 2023. We then did another test purchase to follow up on some further information related to that premises and we sent all that through towards September-October 2023.

“It was April this year when Trading Standards actually went through the door, but they got a massive haul of stuff, but it just highlights that when you’re building the evidence and it’s going through the right channels, it’s not an instant fix and it’s not going to happen overnight. But if you keep slogging away, we had to do two test purchases before any enforcement action was taken.”

Frustrations with the police force in the area also came to the fore, with one retailer having suffered a burglary and not receiving any support to recover stolen cigarettes.

“My store was broken into and my tobacco stock was stolen but the police did not do anything. I even then found those same cigarettes being sold on Facebook because a customer came and reported it to me. So I contacted the police, gave them the name, gave them the address of where that person lives, gave them the picture, sent everything through, and they did nothing about it.

“In the end nobody ever bothered to get me back to me but then six months later, a policeman coming the shop wanting to view my CCTV because they thought somebody might have come past my street, following a robbery. I had a go at him [the police officer] and I said ‘Right. So you want me to help you but have you done anything about this?’ He took down my details and contacted me just once by phone and that was it.

“What’s the point in spending your time on this? Our time is precious. We’ve worked long enough as it is and nothing gets done.”

While retail outlets selling illicit tobacco was the main focus of conversation, the retailers raised the point that there are many other supply chains that the authorities aren’t able to keep on top of. Open air markets, barber shops, take aways and food delivery were just some of the other places selling illicit produces, which the retailers said makes it so tough for Trading Standards to manage. ” 

The lack of connection between illicit tobacco products and health was also highlighted. “They’re oblivious to what’s in the tobacco and all they see is this the cheapness of the product. They’re not bothered about their health, they just want cheap cigarettes.” 

Even though the situation has lead to severe disillusionment for responsible retailers, the panel did say that what keeps them positive is the interactions with their customers and how “you don’t know whose day you’re going to make, just by being nice to someone”.