Vapes four times more profitable than tobacco to convenience stores – study

Vapes are four times more profitable to convenience stores than tobacco amid a nine-fold increase in sales of the devices in three years, according to a study.

Convenience stores make an average profit of 37.1% for vape products compared with 8.5% for tobacco products, figures from September 2022 analysed by the University of Edinburgh show.

Meanwhile, the average weekly number of transactions per store which included vapes rose sharply from 10 in 2019 to 93 in 2022 – a nine-fold increase in three years.

The researchers noted it was likely that sales from vapes had continued to grow for small retailers since 2022.

Footfall from tobacco sales has decreased by nearly 40% in small retail outlets compared to less than a decade ago, the study shows.

Some 21% of transactions included tobacco in 2015 when Action on Smoking and Health (Ash) conducted a similar analysis, but this dropped to 12.8% in 2022, the University of Edinburgh found.

Some 16% of UK adults smoked in 2016, compared to 12% in 2023, according to Office for National Statistics figures.

The study highlighted the potential benefits to small retailers of existing smokers switching to vaping, and showed that tobacco sales were becoming increasingly unimportant for businesses, the authors said.

The profitability of vapes also underscored the need for a retail licensing scheme to crack down on irresponsible sellers and protect legitimate retailers.

Professor Jamie Pearce, professor of health geography at the University of Edinburgh, said: “Our analysis shows that convenience stores now make only 10% of their profits from tobacco and if their customers were buying products other than tobacco stores would benefit from this.

“Sometimes business and public health interests align – we would all be better off if fewer people bought tobacco.”

Ash chief executive Hazel Cheeseman said: “Tobacco is yesterday’s product. The reduction in sales benefits both the nation’s health and convenience stores who make dwindling profits from selling tobacco. At the same time vape sales have surged, and this is much more profitable for retailers.

“Responsible retailers who are already profiting from vapes should welcome regulations to improve the market, reduce appeal to children and drive out rogue traders.”

The Tobacco and Vapes Bill is making its way through Parliament, which would prevent anyone born after January 1 2009 from legally smoking by gradually raising the age at which tobacco can be bought.

It also restricts sweet vape flavours and will review the packaging of e-cigarettes to reduce their appeal to children and young people.

The legislation includes a total ban on vape advertising and sponsorship, including displays seen by children and young people such as on buses, in cinemas and in shop windows, bringing them in line with current tobacco restrictions.

Disposable vapes will be banned from June 2025 under separate environmental legislation, while the sale of vapes in vending machines and their free distribution will be stopped.