- Despite the ongoing COVID-19 pandemic the ban on menthol cigarettes will still come into effect on 20th May
- Data from 2,600 stores gives retailers detailed insight into impact posed by menthol cigarette ban on their business
- A ‘revenue generator’ allows retailers to see how stocking menthol heated tobacco can help to generate sales following the ban
Philip Morris Limited (PML) has launched a new financial impact calculator to help retailers assess the effect the menthol cigarette ban could have on their business.
“With COVID-19, retailers are already under considerable pressure and face great uncertainty in the months ahead,” said Kate O’Dowd, PML’s Head of Field Force. “The upcoming ban on menthol cigarettes will add to this pressure. Our calculator is a valuable tool to help retailers to take the necessary steps to protect their business during this critical time.”
The calculator, launched at menthol-ban-retail.co.uk, uses EPOS data from an independent study of 2,600 stores nationwide which analyses local spending habits of menthol cigarette smokers1. This includes menthol cigarette purchases and additional shop items purchased in the same transaction.
Retailers can put their postcode into the calculator to see the potential impact the ban could have on their business over a week, a month or a year. The results can then help them to assess the financial upside to stocking alternative products so they can plan for after the menthol cigarette ban.
The calculator allows retailers to see the revenue they could potentially generate by stocking menthol HEETS – a heated tobacco alternative unaffected by the ban and still available to sell. HEETS are specially designed sticks intended for exclusive use with IQOS heat-not-burn technology.
PML research shows that over half (51%) of menthol smokers said they would consider switching to IQOS when menthol cigarettes are no longer available2, while 80% of smokers who try IQOS for seven days switch completely from cigarettes3.
“By stocking a range of alternative products, stores have a great opportunity to generate sales when they are no longer able to sell menthol cigarettes,” said O’Dowd. “This is clearly reflected in the results generated by our new financial impact calculator.”