With Christmas spirit in full swing, convenience retailers across the UK are stepping up to spread joy, warmth, and a sense of togetherness within their communities.
From heartwarming events to dazzling decorations, convenience stores are going beyond their daily operations to create magical moments for customers.
Asian Trader reports on some of the most delightful initiatives, showcasing how independent retailers continue to be the beacons of holiday cheer in the communities.
One such magical event unfolded at the One Stop Carlton Convenience store in Salford, where retailer Priyesh Vekaria hosted the enchanting Santa’s Supercar Sleigh Event.
Vekaria wrote, "It was a day filled with joy, laughter, and the unmistakable magic of Christmas. From the wonder in children’s eyes as they met Santa to the heartfelt connections shared among neighbors, this event was a beautiful reminder of what makes the holiday season so special."
"This event wasn’t just about spreading holiday cheer; it was about celebrating the connections that bring us closer as a community. It reminded us that when we come together with kindness and collaboration, we create something truly magical."
Meanwhile, over at the One Stop Mount Nod store, retailer Aman Uppal went above and beyond to immerse the store in festive spirit.
Lavish decorations transformed the space into a winter wonderland, captivating customers and elevating their holiday experience.
Coca-Cola Christmas activations added an extra sparkle, with the iconic Coca-Cola truck displayed inside and a stunning LED screen outside the store bringing the magic to life.
Elsewhere in Powys, Wales, independent retailer Trudy Davies is filled with Christmas spirit as her store, Woosnam and Davies News, has a host of things to offer as giveaway this festive season from Santa hats to bird seeds packets.
In her signature style, Davies also drove "Made With Llani Love" Christmas-special campaign for festive times by encouraging locals to donate wool while members from the community knit blankets, hats, mitts, booties to be donated to a charity and local hospital.
In Telford, independent retailer Julie Kaur is proving to be a real-life Santa for her community.
Her store Premier Jules has been hosting a Christmas fair, in collaboration with local council and schools, for past two years.
Now in its third year, the event has become a cherished tradition, bringing people together and spreading the festive spirit far and wide.
Westerhope convenience store
Up in Edinburgh, Sophie Williams of Premier Broadway Convenience Store believes in involving the community around this festive times.
This year, she organised a school choir to perform outside her store, filling the air with joyful carols.
To enhance the celebrations, she handed out mince pies and chocolates, spreading sweetness and cheer.
Meanwhile in Newcastle Upon Tyne, independent retailer Sheraz Awan, owner of Sheraz’s Westerhope convenience store, is making sure that no one in the community goes without supplies.
Awan runs food donation campaigns throughout the year, completely funded by the store.
He has geared up the campaign around festive times to give bread packets as giveaway to those in need. The store will remain open on Christmas as well while Awan is hoping to giveaway about "1000 items of food" this year.
He wrote, "Remember, Christmas is upon us. Not everyone will have food on the table with loving family surrounding them."
Awan is also calling on suppliers and wholesalers to help and contribute in this cause.
Grocers must focus on their price positioning to remain competitive as food and grocery spending in UK convenience stores is projected to outpace the hypermarkets, supermarkets, and discounters channel.
According to GlobalData, food and grocery spending in convenience stores is projected to reach £43.2 billion by 2028, growing at a compound annual growth rate (CAGR) of 2.0 per cent between 2024 and 2028.
Between 2023 and 2024, the traditional big four grocers, Tesco, Sainsbury’s, ASDA, and Morrisons, collectively added 800 new convenience stores to their portfolios, with ASDA and Morrisons leading the growth with acquisitions. This rapid expansion underscores increasing competition in the convenience market.
After successfully focusing on price in large format stores to appeal to consumers during the cost-of-living crisis, grocers must shift their focus on agile pricing to convenience locations.
Sainsbury’s and Tesco are notable examples within convenience, with Sainsbury's recently introducing Aldi price matching in its Local stores and Tesco announcing price reductions on over 200 products in its Express stores.
Aliyah Siddika, Retail Analyst at GlobalData, comments, “This replication of price focus from larger format stores to grocers’ expanding their convenience offer will encourage consumers to impulse buy due to increased affordability.
"The shift in UK consumer behaviour towards frequent top-up shopping has also created substantial growth potential in the convenience market.”
Before the pandemic, 81.6 per cent of UK consumers stated they would visit a grocer on the way home from work, and 78.4 per cent reported the same now.
Budget limitations have primarily driven this change, followed by the rise of hybrid working. Pre-pandemic, consumers working in the office full-time had less time to cook dinner after work.
However, with the shift to hybrid work models, consumers now go into the office a few times a week and are more likely to have the time to prepare meals ahead of the days they are in the office to save money.
Convenience retailers should promote low prices on their fakeaway options to entice consumers to visit on their way home from work for an affordable yet indulgent meal.
Siddika concludes,“When offering deeper price cuts in convenience formats, grocers must target price promotions towards items that consumers are more inclined to purchase during the workweek. Such as food-to-go ranges, ready meals, quick dinners, and treats to capture spending from commuters."
The upcoming “grocery tax” could hit hard-pressed Britons in the pocket, adding up to £56 annually to household shopping bills and costing families as much as £1.4 billion a year, state reports on Sunday (22) citing a recent analysis.
The scheme, known as Extended Producer Responsibility (EPR), imposes a levy on retailers and manufacturers for the cost of collecting and disposing of packaging waste, currently funded via council tax.
The Department for Environment, Food and Rural Affairs (Defra) on Friday (20) published a series of “base fees” to indicate how much food manufacturers and retailers will be charged under the scheme when it starts next autumn.
The highest fee of £485 a tonne will be charged for plastic packaging followed by “fibre-based composite” at £455 a tonne. The levy for paper or board packaging is £215 a tonne while materials such as bamboo or hemp will be charged at £280 a tonne.
The government’s impact assessment estimates the policy will cost the industry £1.4 billion a year and will drive up prices by between £28 and £56 a year for the average household, adding 0.07 per cent to inflation as retailers pass on most of the costs to shoppers.
However, the British Retail Consortium believes the levy, officially known as the “extended producer responsibility”, will cost about £2 billion a year. If all of this were added to food bills it would drive up the average household cost by £70 a year.
The scheme is expected to come into effect shortly, coinciding with rise in employers’ national insurance contributions and the increase in the minimum wage.
The measure, intended to hit the Government’s net-zero targets, has drawn criticism for inflating food prices and creating new red tape for businesses. Critics warn the measure will increase food costs for families while creating additional bureaucracy for businesses.
In a letter sent to Chancellor Rachel Reeves last month, the bosses of Tesco, Sainsbury’s, Morrisons, Asda, Lidl and Aldi implored her to delay the levy.
The letter said: “For any retailer, large or small, it will not be possible to absorb such significant cost increases over such a short timescale.
"The effect will be to increase inflation, slow pay growth, cause shop closures, and reduce jobs, especially at the entry level. This will impact high streets and customers right across the country.
“We are already starting to take difficult decisions in our businesses and this will be true across the whole industry and our supply chain.”
The levy was originally conceived by Michael Gove during his time as environment secretary but, after a backlash from Tory MPs, it was put on hold.
Labour has revived the scheme since coming to power. Secondary legislation passed this month will bring the scheme into legal force on January 1, 2025, with charges due to be rolled out later that year.
Local authorities, which will receive the funds from the levy, are under no obligation to reduce council tax rates once relieved of the costs of waste collection.
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A woman enters the Selfridges department store on December 13, 2024 in London, England
The UK retail sector is bracing for a challenging but opportunity-filled 2025, according to Jacqui Baker, head of retail at RSM UK. While the industry grapples with rising costs and heightened crime, advancements in artificial intelligence and a revival of the high street offer potential pathways to growth, she said.
The latest Budget delivered a tough blow to the retail sector, exacerbating existing financial pressures. Retailers, who already shoulder a significant portion of business rates and rely heavily on a large workforce, face increased costs from rising employers’ National Insurance Contributions.
“Higher costs will also eat into available funds for future pay rises, benefits or pension contributions – hitting retailers’ cashflow in the short term and employees’ remuneration in the longer term,” Baker said.
“Retailers must get creative to manage their margins and attract footfall and spend, plus think outside the box to incentivise employees if they’re to hold onto talented staff.”
On the brighter side, falling inflation and lower interest rates could ease operational costs and restore consumer confidence, potentially driving retail spending upward.
High street resurgence
Consumers’ shopping habits are evolving, with a hybrid approach blending online and in-store purchases. According to RSM UK’s Consumer Outlook, 46 per cent of consumers prefer in-store shopping for weekly purchases, compared to 29 per cent for online, but the preference shifts to 47 per cent for online shopping for monthly buys and to 29 per cent for in-store. The most important in-store aspect for consumers was ease of finding products (59%), versus convenience (37%) for online.
“Tactile shopping experiences remain an integral part of the purchase journey for shoppers, so retailers need to prioritise convenience and the opportunity for discovery to bring consumers back to the high street,” Baker noted.
The government’s initiative to auction empty shops is expected to make brick-and-mortar stores more accessible to smaller, independent retailers, further boosting high street revival, she added.
A security guard stands in the doorway of a store in the Oxford Street retail area on December 13, 2024 in London, EnglandPhoto by Leon Neal/Getty Images
Meanwhile, retail crime, exacerbated by cost-of-living pressures, remains a significant concern, with shoplifting incidents reaching record highs. From organised social media-driven thefts to fraudulent delivery claims, the methods are becoming increasingly sophisticated.
“Crime has a knock-on effect on both margins and staff morale, so while the government is cracking down on retail crime, retailers also have a part to play by investing in data to prevent and detect theft,” Baker said.
“Data is extremely powerful in minimising losses and improving the overall operational efficiency of the business.”
AI as a game-changer
Artificial intelligence is emerging as a transformative force for the retail sector. From personalised product recommendations and inventory optimisation to immersive augmented reality experiences, AI is reshaping the shopping landscape.
“AI will undoubtedly become even more sophisticated over time, creating immersive and interactive experiences that bridge the gap between online and in-store. Emerging trends include hyper-personalisation throughout the entire shopping journey, autonomous stores and checkouts, and enhanced augmented reality experiences to “try” products before buying,” she said, adding that AI will be a “transformative investment” that determines the long-term viability of retail businesses.
The Amazon Fresh store in Ealing, LondonPhoto: Amazon
As financial pressures ease, sustainability is climbing up the consumer agenda. RSM’s Consumer Outlook found 46 per cent would pay more for products that are sustainably sourced, up from 28 per cent last year; while 44 per cent would pay more for products with environmentally friendly packaging, compared to 36 per cent last year.
“However, ESG concerns vary depending on age and income, holding greater importance among high earners and millennials. With financial pressures expected to continue easing next year, we anticipate a renewal of sustainability and environmentally conscious spending habits,” Baker noted.
“Retailers ought to tap into this by understanding the preferences of different demographics and most importantly, their target market.”
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A woman walks past a window display promoting an ongoing sale, on December 13, 2024 in London, England.
UK retail sales rose less than expected in the runup to Christmas, according to official data Friday that deals a fresh blow to government hopes of growing the economy.
Separate figures revealed a temporary reprieve for prime minister Keir Starmer, however, as public borrowing fell sharply in November.
The updates follow news this week of higher inflation in Britain - an outcome that caused the Bank of England on Thursday to leave interest rates unchanged.
Retail sales by volume grew 0.2 per cent in November after a drop of 0.7 per cent in October, the Office for National Statistics said Friday.
That was less than analysts' consensus for a 0.5-percent gain.
"It is critical delayed spending materialises this Christmas to mitigate the poor start to retail's all-important festive season," noted Nicholas Found, senior consultant at Retail Economics.
"However, cautiousness lingers, slowing momentum in the economy. Households continue to adjust to higher prices (and) elevated interest rates."
He added that consumers were focused on buying "carefully timed promotions and essentials, while deferring bigger purchases".
The ONS reported that supermarkets benefited from higher food sales.
"Clothing stores sales dipped sharply once again, as retailers reported tough trading conditions," said Hannah Finselbach, senior statistician at the ONS.
Retail sales rose 0.2% in November 2024, following a fall of 0.7% in October 2024.
Growth in supermarkets and other non-food stores was partly offset by a fall in clothing retailers.
The Labour government's net borrowing meanwhile dropped to £11.2 billion last month, the lowest November figure in three years on higher tax receipts and lower debt-interest, the ONS added.
The figure had been £18.2 billion in October.
"Borrowing remains subject to upside risks... due to sticky interest rates, driven by markets repricing for fewer cuts in 2025," forecast Elliott Jordan-Doak, senior UK economist at Pantheon Macroeconomics.
Jacqui Baker, head of retail at RSM UK and chair of ICAEW’s Retail Group, commented that the later than usual Black Friday weekend meant November’s retail sales figures saw only a slight uptick as cost-conscious consumers held off to bag a bargain.
“Despite many retailers launching Black Friday offers early, November trade got off to a slow start which dragged on for most of the month. This was driven by clothing which fell to its lowest level since January 2022. The only saving grace was half-term and Halloween spending helped to slightly offset disappointing sales throughout November,” Baker said.
“As consumer confidence continues to build and shoppers return to the high street, this should translate into more retail spending next year. However, there are big challenges coming down the track for the sector, so retailers will be banking on a consumer-led recovery to come to fruition so they can combat a surge in costs.”
Thomas Pugh, economist at RSM UK, added: “The tick up in retail sales volumes in November suggests that the stagnation which has gripped the UK economy since the summer continued into the final months of the year.
“While the recent strong pay growth numbers may make the Bank of England uncomfortable, it means that real incomes are growing at just under 3 per cent, which suggests consumer spending should gradually rise next year. However, consumers remain extremely cautious. The very sharp drop in clothing sales in particular could suggest that consumers are cutting back on non-essential purchases.
“We still expect a rise in consumer spending next year, due to strong wage growth and a gradual decline in the saving rate, to help drive an acceleration in GDP growth. But the risks are clearly building that cautious consumers choose to save rather than spend increases in income, raising the risk of weaker growth continuing through the first half of next year.”
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Single-use disposable vapes are displayed for sale on October 27, 2024 in London, England
Perhaps the first item of business is the disposable vapes ban, scheduled to come into force on 1 June next year, and almost universally regarded by those within the industry as counter-productive, perhaps even encouraging ex-smokers to take up the weed again.
But such is the power over politicians of “being seen to act” that they can easily ignore negative, second-order consequences such as that, or encouraging an explosion in the illegal trade (with all the organised crime and lost tax revenue it implies).
Don’t be indisposed
But while many vapers will now be looking around to choose a pod system, a heat-not-burn device, or a nic pouch to replace the “fire-and-forget" devices, there is still a six-month period until the ban arrives. Until then, it is fair weather sales for disposables, so retailers should make the most of it.
“That’s why we recommend that retailers continue to stock a wide range of leading disposables in the short-term,” says Andrew Malm, UK Market Manager at Imperial Brands, whose blu bar 1000 is the latest disposable, fully compliant device, boasting a removable battery to aid in safe disposal, and with a translucent mouthpiece to reveal the remaining liquid. The blu bar 1000 offers up to 1,000 puffs (hence the name) and is available in popular flavours including Blueberry Ice, Strawberry Ice, Watermelon Ice, Banana Ice, Mint, Grape, Tropical Mix and Blueberry Cherry.
There are very many disposable brands available, the single-use format having taken over vast areas of the market. In 2022 Philip Morris Ltd (PML) launched its own disposable vape, VEEBA – a “premium, responsible, and sustainable” device, available in nine flavours, with liquid made from pharma-grade nicotine and food-grade flavourings that passed rigorous scientific and quality assessments to ensure they deliver a consistent taste every time.
VEEBA’s liquids guarantee a nicotine level of 20 mg/ml, with each production batch receiving a Certificate of Analysis (COA) and subject to regular – and randomised – checks to ensure devices have the correct liquid composition and nicotine content. PMI’s commitment to quality extended from the liquid used to the product build, with VEEBA’s compact and ergonomic aluminium design able to be used and then recycled.
Photo: iStock
This was typical of the great care producers lavished on their high-quality disposables. From the start, vape producers placed a laser-focus on ensuring the standards of their e-cigs, and acted with consummate responsibility in only supplying to adult smokers and ex-smokers.
VEEBA, for example, was not commercialised with flavour descriptors that could have appealed to youth, such as images or descriptions of candies or desserts, or brightly coloured or flashy devices on the packaging. Instead, subtle colours and functional flavour descriptors worked together with PML’s youth-access prevention programme, to focus on providing access only to existing adult nicotine users and smokers.
Unfortunately, that didn’t stop other consumers littering with the discarded disposable devices, or using the enormous number of illicit vapes suddenly appearing to take advantage of the exploding demand. Neither did it dissuade some unscrupulous sellers from placing the one-time vapes – popular and practical because of their lower cost, no doubt – into the hands of minors.
“It’s clear that the disposable segment within the e-vapour category is growing exponentially for adult tobacco and nicotine users in the UK," External Affairs Director at PML, Duncan Cunningham, said at the time. “PML is responding to the immediate need for a smoke-free offer to be commercialised responsibly, and that is sustainable, trust-worthy, and reliable. By doing so, we aim to increase adult smokers’ and nicotine users’ access to responsible, disposable e-vapour devices that actively contribute to reducing the harm from smoking – while limiting the appeal and use among unintended audiences, particularly youth.”
In the end, it wasn’t enough, and the ban will arrive on time.
On to the pod
For those who recall the pod-mod revolution of a few years back, it was somewhat ironic that single-use e-cigs (which were the original vapes way back when), experienced a resurgence after pods had started to become so dominant.
Why did this happen, and thus unfortunately attract the attention of anti-vape campaigners and government? Paradoxically, the disposable e-cig made its reappearance so widely because the vape sector itself was growing so strongly: as the user-base expanded, disposables disproportionately attracted new vapers.
“The vape market has been growing over the past few years and the category value of vaping in the UK is forecast to almost triple from £930 million to almost £3 billion in 2025," says Malm, exposing just how energetic the vape market is, and its extraordinary mass appeal in sweeping up ex-smokers.
Those ex-smokers were naturally looking for something that most closely resembled a tobacco cigarette – smoke and discard – and were getting into the vape scene to quit tobacco and improve their health. Disposables were the perfect introduction for them. (Let’s hope the ban will not send them back to their smokes again ...)
And to ensure that doesn’t happen, it will soon be time to turn again to the promise of the pod!
"To give consumers choice as they seek out compliant devices, even ahead of the expected ban, retailers should also stock pod systems,” says Malm. “Our new blu bar kit, for instance, is becoming a popular option. The rechargeable vaping device uses replaceable pods to deliver a market-leading 1,000 puffs [average] of intense flavour per pod.”
It is a sleek and lightweight device that offers the easy use and portability of a disposable device, while the rechargeable 550mAh battery and USB-C charging port enables repeated use. It has launched with four flavours including new, intense Cherry as well as intense Pineapple and features blu Flavour Tech mesh coil technology to deliver strong bursts of flavour, Malm explains. “E-liquid level visibility means users can easily see when their pods need replacing, and with pod safety a priority, a security lock ensures the device is fully protected when not in use.”
The blu bar kit is available with an RRP of £5.99, which includes the rechargeable device and one pod, in either Cherry or Pineapple. Also available, with an RRP of £5.99 are blu bar pod packs, which include two pods per pack in Cherry, Pineapple, Blueberry Sour Razz, or Watermelon Ice.
ELFBAR, who were huge in the disposable vapes field (the ELFBAR 600 disposable was the perfect all-day vape, and the range expanded with the super-slim Cigalike and the ELFBAR T600), have pivoted brilliantly and announced two NPD to beat the ban.
The ELFBAR 4-in-1 Prefilled Kit is an innovative “big-puff” pod device, featuring a 1500mAh rechargeable battery that delivers between 2400 and 3200 puffs. With its "4 pods in 1" design, it is simple to twist to switch between flavours. Each 2ml pod features a QUAQ mesh coil, providing enhanced flavour and consistent vapour.
It is available in 27 flavours and delivers 20mg/ml Nic Salt, includes four prefilled pods, and is equipped with a robust 1000mAh battery (a maximum power output of 30W), providing power for extended vaping sessions. Refilling is easy with a top-fill design. It comes with a dual mesh pod, offering versatility for both MTL (Mouth To Lung) and RDL (Restricted Direct Lung) vaping styles “whether you prefer a tight or an airy draw".
ELFBAR launches its first 4-in-1 pod kit
The market is now re-gearing itself ahead of June 2025. ICCPP Group, the parent company of Voopoo, has introduced ArgusBar Prime, a pod system with fast charging and a detachable battery, available in 20 flavours.
Vaping company Lost Mary has launched its 4-in-1 pod kit, the brand’s first. Again, delivering up to 3,200 puffs, the reusable and rechargeable pod kit holds four 2ml prefilled pods, offering the choice of four flavours.
Lost Mary believes that flavours remain integral in encouraging adult smokers to quit cigarettes and adopt vaping, as noted by the Royal College of Physicians. To that end, the Lost Mary 4-in-1 supports the demand and important role flavours play while strengthening the brand’s market leadership with reusable products, the first of which was introduced in late 2023 – long before the single-use ban was proposed, they say. It come in 16 flavours including favourites such as Pineapple Ice, Strawberry Ice, and Blueberry Sour Raspberry.
In July Vapes Bar announced the upcoming nationwide launch of its new Angel 2400 (puffs) device, which also combines four 2ml tanks into one rechargeable device offering the flexibility of four flavours and “significant” cost savings for consumers, while reducing waste.
PML also adapted by launching the pod system vape Veev One (echoing the VEEBA sound of its established disposable), featuring advanced heating technology and premium e-liquids made from high-quality nicotine and food-grade flavourings to ensure consistency of taste.
Since its launch less than a year ago in Europe, Veev One has emerged as the leading closed pod vape system in both Italy and Czechia.
“We’re excited to introduce Veev One to the UK market at such a transformative time for the e-cigarette industry,” John Rennie, commercial director at PML, said in August. “The closed systems market has grown 35 per cent since January, with millions of adult smokers and nicotine users seeking new alternatives.
“As the UK market evolves, Veev One stands out as a premium, responsible, and recyclable, e-cigarette, with proven success across Europe.”
Veev One launches in the UK with a recycling programme, rewarding consumers for returning pods and devices for recycling and responsible disposal free of charge. Participants receive a £5 reward toward their next purchase from the IQOS online store.
Veev One comes in 12 flavours spanning three taste categories—Aromatic, Cooling & Crisp, and Warm.
Nic pouch paradise
For several years now pouches, in which nicotine-impregnated material is held in the mouth to release its effects, have been making extraordinary progress in the market. Retailers love them because they are easily displayed, take up little room around the counter and offer great margins. Consumers adore them because they can be used in all the places that cigarettes and vapes cannot, meaning complete freedom to indulge because nobody can tell you are doing it.
All the big players have their brands and placements – PML has Zyn, BAT has VELO, JTII has Nordic Spirit, and now STG has its XQS.
Asian Trader talked to Prianka Jhingan, Head of Marketing at Scandinavian Tobacco Group UK, to find out how this newest entrant is finding the world of nic pouches.
“There’s no doubt UK nicotine pouch sales are really taking off now, with our latest data showing the category is worth just over £110m in annual retail sales and this figure doesn’t include sales taking place online,” she says, adding that it reflects year on year growth of 88 per cent in volume terms, offering clear evidence to its growing popularity and consumer demand.
“And of course, with the upcoming disposable vape ban coming in June next year, this is likely to mean many consumers will be looking for alternative next gen products, so nicotine pouches like our own XQS are likely to see a further surge in sales as they offer consumers a very credible and attractive alternative due to their exciting flavours, discreet nature and ease of use. It’s also worth reminding retailers that nicotine pouches offer attractive profit margins in general, but I’m pleased to confirm that XQS offers one of the highest margins of all pouch brands, which is yet another reason to ensure you are well-stocked.”
Jhingan says that it is still early days for the brand but notes that after just four months post-launch, XQS had already become the sixth biggest-selling pouch brand, and for two reasons. First is STG’s customary commitment to quality – and with pouches that means flavour that lasts.
“Secondly,” she says, “it would be the uniquely smaller-sized pouches which ensure a perfect and delicate fit under the lip.” This was probably a first in the category and suggests further innovations that could enable brands to differentiate themselves.
Jhingan says that STG recently visited a number of wholesalers including Bestway, Parfetts and Dhamecha in locations across the UK to promote its XQS pouches to all the visiting retailers, telling them why it’s such a hot option to stock right now, and giving them a chance to enter a competition to win £500 worth of vouchers.
“I think in general it’s sensible to stock a mixture of both established brands and new pouch brands as they bring excitement and interest to the category. It’s also worth noting that nicotine pouches tend to be consumed by a mix of customers. Almost certainly the largest group will be transitioning smokers who are moving away from tobacco and into the next gen nicotine category. But there are also other groups who are enjoying nicotine pouches too, whether they be young urban professionals, trend setters or more socially conscious young adults.”
Heating up
Believe it or not, Philip Morris has just celebrated the tenth anniversary of its IQOS heat-not-burn (HNB) device, now called IQOS Iluma. The progress of HNB in the market has not been as parabolic as pods or e-cigs, although the sales have consistently grown with the increasing availability of the products, which typically were first trialled at limited outlets and in certain areas only – it was a wholly new tech after all, and perhaps more expensive than others on sale to vapers, so careful groundwork had to be laid down before wider release.
Now though, HNB is mainstream, with sales to match, and has proven particularly popular with ex-smokers who truly adore tobacco, because (treated) tobacco is still used, although it is not actually ignited, eliminating the vast majority of harmful chemicals that would otherwise be released in normal cigarette smoke.
The launch of IQOS proved to be a breakthrough moment toward achieving the PMI’s commitment (PML in the UK) to a future without cigarettes.
“With the debut of IQOS, we launched PMI’s vision of a smoke-free company, creating an opportunity to solve the problem of smoking,” PMI chief executive Jacek Olczak said.
In Japan – the first market where IQOS was launched in 2014 – newly released public health data by the National Health and Nutritional Survey (NHNS), an annual survey conducted since 1948 by the Japanese Ministry of Health, Labour and Welfare, revealed a 46 per cent decrease in cigarette-smoking prevalence since 2014, dropping from 19.6 per cent of all adults to 10.6 per cent in 2022 – almost halving.
This decline correlates with the introduction of heated tobacco products and their subsequent widespread adoption by millions of adults who smoke in Japan. IQOS now generates over £8bn of PMI’s annual net revenues and the product is available in over 70 markets worldwide, with 30.8 million estimated users.
JTI's Ploom device, meanwhile, was re-designated as Ploom X Advanced last year when it added two key improved features, namely an optimised HeatFlow system, with higher vapour volume during initial puffs offering an enhanced user experience, and faster charging, taking less than 90 minutes to achieve full charge.
Alongside launching Ploom X Advanced, the EVO tobacco sticks range added a new Gold variant, alongside improved blends for the existing Bronze and Amber flavours.
Ploom X Advanced won a Product of The Year Awards 2024 in January, and with 86 per cent of shoppers more likely to buy a product that has won, retailers who stock Product of the Year winners can really increase their sales.
"In response to consumer feedback, we made some positive changes when we launched Ploom X Advanced, and the brand has gone from strength to strength with device sales doubling and EVO tobacco stick sales tripling year on year," said Mark McGuinness, Marketing Director at JTI UK.
"With the Heated Tobacco category continuing to grow at a rapid rate, this award shows not only the success of our product, but the clear consumer interest in the category and Ploom.”
With the category currently worth £105 million in traditional retail and growing 20.5 per cent YOY, Heated Tobacco now offers a huge opportunity for retailers.
Meeting the ban
Finally, as the expected ban is on the horizon, it is also worth retailers checking up – or refreshing their memories – on CitizenCard’s No ID No Sale Guidelines, Malm cautions. The guidelines also list out staff training advice – an element that is critical in making sure teams are correctly handling age-restricted products and are recording any denied sales via the Refusals Register.
“As well as this, the free retail packs offered contain POS merchandise such as Statutory Tobacco Notices and Age-Related posters along with ‘Scan Me’ and ‘No ID No Sale!’ badges and shelf wobblers,” he adds. “We also strongly advise retailers to check their supply sources rigorously and to continue to be wary of potential suppliers offering products which may be illicit.”
The banning of disposables means of course that the ex-users will be looking for other vaping, pouching or HNB products to replace their e-cigs. That gives retailers an opportunity to merchandise the approved products, and STG’s Prianka Jhingan suggests retailers should be inventive and bold.
“The display of next-gen products is really important, which is why to really maximise sales of XQS, we believe it is best suited in multiple locations due to it being a new product in the category that consumers may not be aware of," she advises. “We currently offer three different display solutions to accommodate different store space availability and to ensure maximum visibility to those entering the store.”
"We’d recommend having a strong visual display of next-gen products, positioned away from the main gantry where possible, with clear information on pricing to enable customers to browse at their leisure without the need to handle and inspect products,” says Imperial Brands’ Andrew Malm. “If you only have limited space, a small countertop unit can help achieve this, especially if it is organised and fully stocked. Positioning the unit in a well-lit part of the counter will also help increase the visibility of the products.”
He notes the importance of the growing trend of retailers proactively engaging with customers to understand their purchasing preferences.
“This valuable customer intelligence will help retailers to offer product ranges at a store level," he says. “Different consumers in different areas will want different things – having these conversations will allow retailers to know which specific products are best for them.
Malm concludes that retailers should also regularly review their range to ensure it meets customers' needs: “Smart retailers are also taking proactive measures to monitor stock levels to ensure that popular products are consistently available. This not only keeps customers satisfied and loyal but also reduces the risk of them seeking alternatives.
All in all, despite the ban, it’s clear that if you look after your vapes, they will look after you.