Big Tobacco is out in force telling retailers what to think about impending changes to the law. As you may have heard, the government is phasing out the sale of tobacco to the next generation, which means by 2027 no one born before 2009 can be legally sold tobacco.
We’ve all seen the articles and the adverts from tobacco manufacturers painting a picture of doom over these proposed changes. And behind the scenes, no doubt, there are countless emails, letters, and visits from company reps pushing the same message: that stronger tobacco regulation spells disaster for business.
But the real burden on retailers isn’t regulation – it’s reliance on tobacco itself. Cigarettes might bring in footfall, but they deliver some of the lowest margins in retail, often just 6%. Smokers are quick, transactional customers; they buy their pack and leave.
By contrast, the same customers who quit smoking or switch to legal vapes tend to buy more, such as food to go, coffee, groceries and snacks. Every time that happens, both retailer and customer are better off. Many shops have already started pivoting towards higher-margin, healthier and more sustainable products. The Tobacco and Vapes Bill simply accelerates that shift.
So, let’s be clear about who benefits from the spin that regulating tobacco is bad for retailers: not the corner shop or the supermarket, but the multinational tobacco manufacturers protecting their profits as smoking declines.
The changing nature of selling tobacco
When display bans and plain packaging were first introduced, the same scare stories were rolled out. Yet the evidence tells a different story. ASH’s retailer survey, conducted by an independent market research firm with 900 small retailers, found 74% said the display ban had no negative impact or even helped their business, and 75% said the same about plain packs. Retailers adapted and carried on trading successfully.
Outside the flagship policy to raise the age of sale for tobacco, the new Bill will mean further practical adjustments as further regulations are brought in around vapes and nicotine pouches. There will be changes to vape displays and vape packaging and an age-of-sale increase for nicotine pouches. But these are well within retailers’ proven ability to handle change.
The illicit trade myth
At ASH we are not remotely complacent about the illegal tobacco market. It brings crime into our communities, undermines legitimate trade and keeps people smoking. Illicit trade is a real issue – but it’s not caused by sensible regulation. In fact, illicit tobacco consumption has dropped by almost 90% since 2000-01, even as tax and regulation have tightened. The Bill strengthens enforcement and supply chain controls, which helps legitimate retailers by reducing unfair competition.
The tobacco industry’s “illicit trade” narrative is simply another lobbying tool designed to stall progress and frighten shopkeepers into defending its business model.
The best way to end the illicit trade in tobacco, possibly the only way, is to end the demand for tobacco.
Don’t let Big Tobacco use you as a shield
For years, tobacco companies have used retailers as their mouthpiece. They push out talking points about illicit trade and “burdensome red tape” to stall reform. They co-opt retailers to speak to politicians and the media because, funnily enough, no one trusts them. Yet these are the same companies that have hiked wholesale prices, squeezed retailer margins and fought every health measure going.
To be fair, most small retailers are not won over by the spin. When we asked retailers in 2022 if they thought tobacco companies had their best interests at heart, only 36% agreed.
A positive transition for retailers and communities
Smoking rates are already at record lows, and the future of retail lies in innovation, fairness and stronger ties with local communities Those who adapt and move beyond tobacco will be the ones who prosper.
The Tobacco and Vapes Bill isn’t an attack on retailers; it’s an invitation to evolve, freeing businesses from dependence on the lowest-margin, most harmful product on their shelves. After six months of political delay, and another 60,000 young people starting to smoke, the message is clear: the time to act is now. This is a once-in-a-generation chance to build a truly smoke-free future, where both communities and responsible retailers can thrive.
Hazel Cheeseman is CEO of Action on Smoking and Health (ASH)
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