Dollar-Store Chains Say Smokers Are Their Best Customers

Smoking rate for regular customers almost double the national rate, making tobacco big business for chains.

November 07, 2014

NEW YORK – Cigarette sales is a relatively new offering for dollar stores, yet they’ve quickly discovered that smokers are some of their best customers, says a new article from Bloomberg.

Dollar General and Family Dollar, the two largest dollar-store chains, began adding cigarettes in 2012 and 2013, at a time when there is increasing pressure on retailers to cease tobacco sales.

The article cites a Family Dollar spokesperson who says that their channel’s customers are more likely to be smokers than the typical American. About a quarter of Family Dollar customers smoke, a number that rises to 35% among the chain’s most frequent shoppers — almost double the 18% of Americans who smoke, according to numbers from the CDC.

Family Dollar explains that it began selling cigarettes several years ago in response to urging from its customers. A year later, Dollar General entered the market, creating 20,000 new tobacco retail locations between the two chains. Like Family Dollar shoppers, Dollar General customers also smoke at higher rates than the general public.

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