Dairies urged to switch up tactics
Dairy owners need to stop relying on the sale of cigarettes in order to try and combat tobacco-driven crime, a retail expert says.
Chris Wilkinson said if dairy owners stocked more high-margin products they could try and phase out cigarettes, in turn protecting themselves from becoming victims of armed robberies.
Cigarette sales were often attributed with keeping these businesses afloat, but Wilkinson said dairy owners only made about $1.20 per packet.
‘‘This is a low margin, but a necessary contributor to commercial sustainability for these businesses.’’
Wilkinson said dairy owners needed to re-engage with the community, and find out what products they would like to see stocked. This would encourage more people to visit the store more often for topup shopping trips.
‘‘They need to find products which have a strong margin, and excel in those. It might be scooped icecream, it might be pies, it might be sandwiches – whatever is most relevant to consumers in their area,’’ Wilkinson said.
‘‘If they are able to lift sales, then the ability to stop selling cigarettes is a workable option.’’
New research suggests there is a big opportunity for convenience store owners to tap into the needs of time-poor, health conscious shoppers in New Zealand.
Nielsen retail analytics director Lance Dobson said while tobacco was a big driver of revenue, relying on a single category, in spite of changing trends, was risky.
Over the past few years, the number of tobacco-driven crime had skyrocketed, with dairies the main target.