Allen Painter personally applauds the decision by CVS to stop selling tobacco products.
“I think it’s a good move,” he said Wednesday when the 7,600-store chain announced it would be the first national pharmacy to drop cigarettes.
But Painter the businessman isn’t about to follow suit. As the owner of 12 convenience stores, mostly in metro Atlanta, Painter plans to continue selling tobacco products.
Cigarettes account for more than 30 percent of revenues at the typical convenience store, said Jim Tudor, president of the Georgia Association of Convenience Stores.
“I don’t think there are a lot of people who would walk away from 30 percent of their sales,” Tudor said.
While profit margins on cigarettes have declined because of price pressures, “It’s still a significant category for our industry,” he added.
Cigarettes are effective as a customer draw, Painter said, pulling in people who then buy more profitable items like potato chips and soft drinks.
RaceTrac spokesperson Ashleigh Collins said that chain plans to continue selling cigarettes, as well. “Our selling strategy is going to remain the same as far as tobacco products are concerned. No big change for us.”
There are 77 RaceTrac stores in Georgia and more than 360 total in Georgia, Florida, Louisiana and Texas.
Tudor noted that, “We are the outlet where the majority of tobacco sales occur.”
CVS and retailers with pharmacies have other ways to generate revenue, said Painter.
In announcing its the change, which takes effect in October, CVS said peddling tobacco doesn’t square with its mission as a center for wellness. That’s not the case with convenience stores.
“We’re not comparing apples to apples,” Painter said.
Tudor does not anticipate convenience store operators pulling cigarettes from their shelves.
“I don’t see that happening as long as it’s legal and our consumers want it,” he said.
But industry experts said they look for other pharmacies to jettison cigarettes as well.
While the subject of where smokers are able to buy cigarettes is new, the issue of where they can light up is an old one.
Many private companies have been moving toward smoke-free environments for years, and state laws went into effect in 2005 that gave non-smokers a major victory.
The law prohibited smoking in state-owned and operated buildings, and puffing was outlawed in offices generally, with a few exemptions. Offices of tobacco companies can allow smoking, and hotels can designate up to 20 percent of their rooms as smoking rooms, for instance.
Bars and restaurants can allow smoking if they wish, but only if they ban anyone 17 or younger from entering or working in the place. Even so, many bars have gone smoke-free, such as Manuel’s Tavern in recent months, and Smith’s Olde Bar, which went smoke free in 2011.
Restaurants can have smoking areas, such as the Buckhead Cigar Store, as long as they have separate heating and cooling systems. Privately-owned convention facilities can allow smoking, as can private clubs, if they choose.
