Palmer & Harvey has unveiled further details of its “unbeatable” tobacco pricing strategy for independent retailers.
This week, the wholesaler introduced a sliding scale of prices based on the number of non-tobacco products ordered.
For orders that include 250 non-tobacco outers an approximate spend of £2,500 P&H said it would sell tobacco at its best outer price, Band A. “This is the most competitive price in the sector,” the wholesaler said.
An additional tobacco tariff would be applied for smaller non-tobacco orders, ranging from an extra 20p per 200 cigarettes for orders of 175 to 249 outers, to £1.20 per 200 cigarettes for retailers who order between zero and 49 non-tobacco outers.
For orders of more than 150 non-tobacco outers, P&H said its tobacco prices would still be “unbeatable”.
The move places P&H in a battle against cash & carries. Its website displays a mocked-up ballot paper with crosses next to regional and nationwide C&Cs, and a big tick next to P&H touting its free delivery.
Last week, P&H revealed sales had dropped by 4.8% in the year to 2 April, partly due to a decline in tobacco volumes.
“This is the biggest shake-up of tobacco pricing in P&H’s history,” said marketing director Richard Hayhoe. “Not only do these prices beat the competition but retailers also save time and petrol.”