Here are a few stats to get us started. The FTC reported the following totals for “Price Discounts -Retailers”:
The FTC defines these as:
“Price discounts paid to cigarette retailers in order to reduce the price of cigarettes to consumers, including off-invoice discounts, buy-downs, voluntary price reductions, and trade programs; but excluded retail-value-added expenditures for promotions involving free cigarettes and expenditures involving coupons.”
“Retail-value-added expenditures for promotions involving free cigarettes (e.g. buy two packs, get one free), whether or not the free cigarettes are physically bundled together with the purchased cigarettes, including all expenditure and costs association with the value-added to the purchase of cigarettes (e.g., excise taxes paid for the free cigarettes and increased costs under the Master Settlement Agreement).”
With a simple multiplication of price discounts X 87% / 150,274, we arrive at $35,114.71 per location per year for cigarettes only.
You can then add in other tobacco product rebates for a larger estimate. That report is also available on the FTC website*. You can also conservatively estimate price discounts / 380K retailers for $15,961.37 per retail location per year.
*Resources
https://www.cspdailynews.com/csp-magazine/whos-challenging-c-stores-share-tobacco-market
https://www.convenience.org/Research/FactSheets
https://www.cdc.gov/statesystem/factsheets/licensure/Licensure.html#anchor_1562854271
Lottery tickets are an integral part of c-store sales, and data from the Arizona Lottery Commission shows that sales have risen over 30% from 2020 to 2021. Lottery game sales reached over $1.4 billion over the past year.
However, the growth of lottery games comes with the risk of inventory issues such as internal theft. Petrosoft’s loss prevention analytics software will help you manage your lottery inventory and keep employee theft at bay. While inventory management is always important for all products, it becomes even more vital for lottery tickets.
Did you know that one stolen $30 lottery ticket could take as much as $1,200 in ticket sales to make up for the loss? That’s, of course, given you assume a typical 5% commission and a 50/50 gross profit split. That one ticket unaccounted for or unpaid can be a substantial hit to your profits.
Here are just three ways employees might try to commit theft with lottery tickets:
Lottery theft, although widespread and potentially devastating for c-store profits, can be managed with increased vigilance and help from technology. To cut off lottery theft:
It can be hard to keep track of every lottery purchase and ensure its legitimacy. That’s why a loss prevention system specifically designed to spot theft is necessary for all lottery retailers. Get a notification and video footage of every no-sale, lottery pay-out and price change so that you can have the peace of mind that your store’s lottery inventory is in good hands.
Petrosoft’s loss prevention analytics system goes above and beyond to supplement inventory management so that you have every tool at your disposal to counteract lottery theft.
Reference: https://www.arizonalottery.com/media/2404/08-20-21-az-lottery-commission-report-v2.pdf
This chart was published from the CDC database. Which state or territory has the highest take rate per packet?
Also note some new tax rates effective in 2021 for Colorado, Maryland and Oregon.
| State/Territory | Tax $ Per Cigarette Pack | Effective Date |
|---|---|---|
| American Samoa | $ 6.00 | 7/1/2015 |
| Puerto Rico | $ 5.10 | 4/29/2017 |
| Palau | $ 5.00 | 1/1/2015 |
| District of Columbia | $ 4.94 | 10/1/2018 |
| Connecticut | $ 4.35 | 12/1/2017 |
| New York | $ 4.35 | 7/1/2010 |
| Rhode Island | $ 4.25 | 7/1/2017 |
| Guam | $ 4.00 | 10/1/2018 |
| Maryland | $ 3.75 | 3/14/2021 |
| Northern Mariana Islands | $ 3.75 | 9/16/2017 |
| Massachusetts | $ 3.51 | 8/1/2013 |
| Oregon | $ 3.33 | 1/1/2021 |
| Hawaii | $ 3.20 | 7/1/2011 |
| Vermont | $ 3.08 | 7/1/2015 |
| Minnesota | $ 3.04 | 1/1/2017 |
| Washington | $ 3.03 | 5/1/2010 |
| Illinois | $ 2.98 | 7/1/2019 |
| California | $ 2.87 | 4/1/2017 |
| New Jersey | $ 2.70 | 7/1/2009 |
| Pennsylvania | $ 2.60 | 8/1/2016 |
| Wisconsin | $ 2.52 | 9/1/2009 |
| Delaware | $ 2.10 | 9/1/2017 |
| Oklahoma | $ 2.03 | 8/23/2018 |
| Alaska | $ 2.00 | 1/1/2005 |
| Arizona | $ 2.00 | 11/7/2006 |
| Maine | $ 2.00 | 9/19/2005 |
| Michigan | $ 2.00 | 7/1/2004 |
| New Mexico | $ 2.00 | 7/1/2019 |
| Colorado | $ 1.94 | 1/1/2021 |
| Nevada | $ 1.80 | 7/1/2015 |
| New Hampshire | $ 1.78 | 8/1/2013 |
| Montana | $ 1.70 | 1/1/2005 |
| Utah | $ 1.70 | 7/1/2010 |
| Ohio | $ 1.60 | 7/1/2015 |
| South Dakota | $ 1.53 | 1/1/2007 |
| Texas | $ 1.41 | 1/1/2007 |
| Iowa | $ 1.36 | 3/15/2007 |
| Florida | $ 1.34 | 7/1/2009 |
| Kansas | $ 1.29 | 7/1/2015 |
| West Virginia | $ 1.20 | 7/1/2016 |
| Arkansas | $ 1.15 | 3/1/2009 |
| Kentucky | $ 1.10 | 7/1/2018 |
| U.S. Virgin Islands | $ 1.10 | 3/22/2017 |
| Louisiana | $ 1.08 | 4/1/2016 |
| Marshall Islands | $ 1.00 | 8/20/2008 |
| Indiana | $ 1.00 | 7/1/2007 |
| Mississippi | $ 0.68 | 5/15/2009 |
| Alabama | $ 0.68 | 10/1/2015 |
| Nebraska | $ 0.64 | 10/1/2002 |
| Tennessee | $ 0.62 | 7/1/2007 |
| Virginia | $ 0.60 | 7/1/2020 |
| Wyoming | $ 0.60 | 7/1/2003 |
| Idaho | $ 0.57 | 7/1/2003 |
| South Carolina | $ 0.57 | 7/1/2010 |
| North Carolina | $ 0.45 | 9/1/2009 |
| North Dakota | $ 0.44 | 6/30/1993 |
| Georgia | $ 0.37 | 7/1/2003 |
| Missouri | $ 0.17 | 10/1/1993 |
Reference: https://nccd.cdc.gov/STATESystem/rdPage.aspx?rdReport=OSH_State.CustomReports
On Jan 1, 2022 the Oregon Laws 2021, chapter 586 (a new ACT) goes into operational effect, requiring retailers to have a tobacco retail license. This is to help bring consistency to the enforcement of cigarette sale compliance across the state of Oregon. Here are a few facts you should know as a cigarette or tobacco retailer:
Colorado also instituted license requirements in 2021 which leaves 9 states without license provisions:
How does Oregon fare against other states when it comes to maximum business penalties for tobacco retail sales violations?
| State/Territory | Maximum Business Penalty | Citation |
|---|---|---|
| American Samoa | No Maximum | A.S.C.A. § 13.1113 |
| Ohio | No Maximum | OHIO REV. CODE ANN. § 2929.21(c)(4) |
| New Mexico | $ 10,000 | SB 131 |
| Rhode Island | $ 10,000 | R.I. GEN. LAWS §§ 44-20-3 and 11-9-13.15 |
| Washington | $ 10,000 | WASH. REV. CODE ANN. § 9A.20.021 |
| Arkansas | $ 5,000 | ARK. CODE ANN. §§ 26-57-226 and 5-4-201 and HB 1980 |
| California | $ 5,000 | CAL. BUS & PROF CODE § 22981 |
| District of Columbia | $ 5,000 | D.C. CODE ANN. § 47-2422 |
| Georgia | $ 5,000 | GA. CODE. ANN. § 48-11-24 |
| Illinois | $ 5,000 | 35 ILL. COMP. STAT. ANN. 130/3-10 |
| Oregon | $ 5,000 | SB 587 |
| Palau | $ 5,000 | 11 PNCA § 1718 |
| Alaska | $ 2,000 | ALASKA STAT. § 43.05.290(h) |
| North Dakota | $ 2,000 | N.D. CENT. CODE § 57-36-33; N.D. CENT. CODE § 12.1-32-01(5) |
| New Hampshire | $ 2,000 | N.H. REV. STAT. ANN. § 651:2(IV)(a) |
| Nevada | $ 2,000 | NEV. REV. STAT. ANN. § 193.140 |
| New York | $ 2,000 | N.Y. TAX LAW § 480-A(3)(a) |
| Texas | $ 2,000 | TEX. TAX CODE ANN. § 154..501(b); TEX. TAX CODE ANN. § 155.201(b) |
| Colorado | $ 1,000 | HB 1001 |
| Connecticut | $ 1,000 | CONN. GEN. STAT. ANN §12-286 |
| Delaware | $ 1,000 | DEL. CODE. ANN. tit. 30, § 5343 |
| Kansas | $ 1,000 | KAN. STAT. ANN. § 79-3322(a) |
| Maryland | $ 1,000 | MD. CODE ANN. BUS. REG. § 16-214(b)(1) |
| Northern Mariana Islands | $ 1,000 | 4 CMC § 50144 |
| Pennsylvania | $ 1,000 | 72 PA. CONS. STAT. § 228-A |
| Utah | $ 1,000 | UTAH CODE ANN. § 76-3-301 and HB 324 |
| Wisconsin | $ 1,000 | WIS. STAT. § 139.44(5) |
| Alabama | $ 500 | HB 41 |
| Florida | $ 500 | FLA. STAT. ANN § 569.005(1) |
| Louisiana | $ 500 | LA. REV. STAT. ANN. §47:859(A) |
| Maine | $ 500 | ME. REV. STAT. ANN. tit. 22, § 1554-B |
| Mississippi | $ 500 | MISS. CODE ANN. § 27-69-7 |
| Montana | $ 500 | MONT. CODE ANN. § 16-11-148 |
| Nebraska | $ 500 | NEB. REV. STAT. § 28-106 |
| U.S. Virgin Islands | $ 500 | 27 V.I.C. § 307 |
| Idaho | $ 300 | IDAHO CODE § 39-5709 |
| Guam | $ 250 | 11 GUAM CODE ANN. § 6307 |
| New Jersey | $ 250 | N.J. REV. STAT. § 54: 40A-24(a) |
| West Virginia | $ 250 | W. VA CODE § 11-12-4a(c) |
| Iowa | $ 200 | IOWA CODE ANN. § 453A.31 |
| Vermont | $ 200 | VT. STAT. ANN. tit. 7, § 1002(e) |
| Minnesota | $ 75 | MINN. STAT. ANN. § 461.12(2) |
| Massachusetts | $ 50 | MASS. GEN. LAWS ANN. ch. 64C § 10 |
| Oklahoma | $ 30 | OKLA. STAT. tit. 68, § 304(2) |
| Arizona | No Provision | |
| Hawaii | No Provision | |
| Indiana | No Provision | |
| Kentucky | No Provision | |
| Marshall Islands | No Provision | |
| Michigan | No Provision | |
| Missouri | No Provision | |
| North Carolina | No Provision | |
| Puerto Rico | No Provision | |
| South Carolina | No Provision | |
| South Dakota | No Provision | |
| Tennessee | No Provision | |
| Virginia | No Provision | |
| Wyoming | No Provision |
References:
https://nccd.cdc.gov/STATESystem/rdPage.aspx?rdReport=OSH_State.CustomReports
https://www.oregonlegislature.gov/bills_laws/lawsstatutes/2021orlaw0586.pdf
https://www.oregon.gov/dor/programs/businesses/Pages/Statewide-Tobacco-Retail-License.aspx
Each year, many organizations publish loss prevention statistics. We’ve highlighted data from the National Retail Federation (NRF) and the National Association of Convenience Stores (NACS).
Who is the NRF? The National Retail Federation (NRF) define themselves as the world’s largest retail trade association.
Who is NACS? The National Association of Convenience Stores (NACS) is a leading global trade organization for convenience and fuel retailers.
If you are a convenience store operator, manager, or just curious, you can find both average shrink and spoilage rates by company size below.
References:
https://nrf.com/media-center/press-releases/retail-sales-now-exceed-444-trillion-2021-nrf-revises-annual-forecast
https://cdn.nrf.com/sites/default/files/2021-08/2021%20National%20Retail%20Security%20Survey%20updated.pdf
https://www.convenience.org/Research/SOISurveys
