Why it matters: rising prices and illegal imports are hurting cigarette sellers
Metcash faces the biggest impact given tobacco accounts for 15 per cent of sales
Some 1.1 billion illegal cigarettes were seized in the year to June 30, 2022
Australian supermarket sales are being squeezed by the growing illicit tobacco trade with independent stores, led by Metcash’s IGA network, describing the “huge problem” as their single biggest issue.
Tobacco is somewhat inconspicuous in supermarkets, but it has had a meaningful impact on sales and margins given demand has dropped significantly in the past year.
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Carrie LaFrenz is a senior journalist covering retail/consumer goods. She previously covered healthcare/biotech. Carrie has won multiple awards for her journalism including financial journalist of the year from The National Press Club. Connect with Carrie on Twitter. Email Carrie at carrie.lafrenz@afr.com
