As a consumer in today‘s ever-evolving retail landscape, you have more options than ever when it comes to where and how you buy products, including tobacco. One of the most ubiquitous retailers is Walmart. With over 5,000 stores across the U.S. and serving over 150 million customers each week, Walmart is a popular destination for purchasing everything from groceries and household items to electronics, clothing, and yes, tobacco products like cigarettes, cigars, and e-cigarettes.
But what exactly are Walmart‘s policies and practices when it comes to selling tobacco? How do they compare to other retailers? What should you know as a consumer looking to purchase tobacco products at Walmart? And what are the potential implications for your health? Let‘s dive in with an in-depth look at the past, present, and future of buying tobacco at Walmart.
The Business of Selling Tobacco at Walmart
First, it‘s important to understand just how significant tobacco sales are to Walmart‘s bottom line. While the company does not disclose specific revenue figures for tobacco, analysts estimate that cigarettes and other tobacco products account for about $5-6 billion of Walmart‘s annual sales, or around 1% of its total U.S. revenue.
To put that in perspective, if Walmart‘s tobacco sales were a standalone business, it would rank #382 on the Fortune 500 list of largest U.S. companies. Tobacco is also a high-margin category for retailers, with gross margins around 30-40% compared to 10-20% for other consumer packaged goods. This means selling tobacco is a highly profitable endeavor for Walmart, generating over $1 billion in gross profit each year.
However, tobacco sales as a percentage of Walmart‘s total business have been declining in recent years. In 2008, tobacco accounted for an estimated 3% of Walmart‘s U.S. revenue, or around $10 billion. Various factors are driving this trend, including:
- Declining smoking rates. Currently, around 14% of U.S. adults smoke cigarettes, down from over 40% in the 1960s.
- Increased regulation and excise taxes on tobacco products at the federal, state, and local levels.
- Growing awareness of the health risks associated with tobacco use.
Despite these headwinds, Walmart and other major retailers have chosen to continue selling tobacco products, citing the need to offer a full suite of options to customers in the face of intensified competition from dollar stores, drugstores, and online retailers.
As of 2022, around 90% of Walmart Supercenter stores and 65% of Walmart Neighborhood Market stores sell tobacco products, including cigarettes, cigars, smokeless tobacco, and rolling papers. However, in recent years, Walmart has stopped selling electronic nicotine delivery systems (ENDS) such as e-cigarettes, vapes, and Juul devices.
This decision came in response to increasing regulatory scrutiny and uncertainty around the health risks of vaping, especially among youth. In September 2019, Walmart announced it would no longer sell e-cigarettes in any of its U.S. stores. "Given the growing federal, state and local regulatory complexity and uncertainty regarding e-cigarettes, we plan to discontinue the sale of electronic nicotine delivery products at all Walmart and Sam‘s Club U.S. locations," the company stated.
Buying Tobacco at Walmart: What Consumers Should Know
So what does all this mean for you as a consumer looking to purchase tobacco products at Walmart? Here are the key things to know:
Cigarettes
Walmart sells a variety of cigarette brands at prices that are typically lower than convenience stores and drugstores but on par with other big box retailers and warehouse clubs. Popular brands available include Marlboro, Newport, Camel, Pall Mall, and L&M.
Prices vary by location based on state and local excise taxes but generally range from around $5-8 per pack. Cartons and multiple-pack discounts may be available. Note that Walmart does not sell cigarettes at any of its store locations in Canada.
Cigars
Walmart offers a basic selection of mass-market cigar brands, typically in pre-packaged foil pouches rather than individually or in boxes. Popular brands include:
- Swisher Sweets
- Black & Mild
- White Owl
- Dutch Masters
- Phillies
- Backwoods
These machine-made cigars come in a variety of flavors, sizes, and packaging styles. Prices range from around $1-3 for a single cigar or cigarillo up to $30 or more for a box, depending on the brand and quantity. Walmart may also sell wraps and rolling papers in the same section.
E-Cigarettes/Vapes
As of September 2019, Walmart does not sell any e-cigarette or vaping products, including devices, pods, tanks, e-liquids, or accessories. This policy applies to all Walmart and Sam‘s Club locations in the U.S.
Age Restrictions
In response to the FDA raising the federal minimum age to purchase tobacco products from 18 to 21 in December 2019, Walmart updated its policy to require all customers to be at least 21 years old in order to buy cigarettes, cigars, or other tobacco products, regardless of state or local laws.
Walmart also requires all tobacco customers to present a valid, government-issued photo ID at the time of purchase, even if they are visibly over the age of 21. Acceptable forms of ID include a driver‘s license, passport, military ID, or tribal ID card.
These age verification requirements apply to all Walmart stores, including those in states and municipalities with lower minimum purchase ages for tobacco. Store associates who sell tobacco to underage customers can face disciplinary action, including termination.
Tobacco Sales Locations & Availability
The availability and selection of tobacco products at Walmart can vary by store, market, and state. Some Walmart locations, particularly those in urban areas and college towns, have stopped selling all tobacco products in response to local laws and changing consumer attitudes.
Within stores that do sell tobacco, these products are typically located in a locked case or cabinet behind the customer service desk or near the front registers. Customers must request assistance from a store associate to access and purchase tobacco.
Some stores may also have self-service tobacco vending machines or point-of-sale displays, although these are less common today due to regulatory restrictions aimed at preventing youth access.
Walmart generally does not sell tobacco products online for home delivery, although some third-party grocery delivery services may offer the option to add cigarettes or cigars to your Walmart order where permitted by law.
Who‘s Buying Tobacco at Walmart?
So what do we know about the customers purchasing tobacco products at Walmart and other retail locations? According to market research firm IRI, the typical tobacco shopper at Walmart skews slightly older, lower-income, and more rural compared to the average U.S. adult.
Some key demographics for Walmart tobacco shoppers:
- Average age: 44 years old
- Gender: 54% male / 46% female
- Race/ethnicity: 74% White, 12% African American, 10% Hispanic
- Education: 45% high school degree or less
- Household income: $45,000 median
- Tobacco usage: 80% everyday smokers, 20% some day smokers
This profile is generally in line with overall U.S. smoking trends. According to CDC data, current cigarette smoking is highest among adults aged 25-64, those with lower education levels and income, and those living in the Midwest and South. Men are also slightly more likely to smoke than women (15.3% vs. 12.7%).
However, it‘s important to note that these demographics only represent a portion of the total tobacco-buying population at Walmart. With over 160 million customer transactions per week, Walmart shoppers encompass a wide cross-section of the U.S. population.
The Public Health Impact of Tobacco Sales at Walmart
Of course, any discussion of tobacco sales would be incomplete without addressing the significant public health implications. According to the CDC, smoking remains the leading cause of preventable disease, disability, and death in the United States, accounting for over 480,000 deaths per year.
Tobacco use is linked to an increased risk of numerous health conditions, including:
- Lung, mouth, throat, and other cancers
- Heart disease and stroke
- Chronic obstructive pulmonary disease (COPD)
- Emphysema
- Diabetes
- Reproductive health issues
- Weakened immune system
The economic costs are also staggering. Smoking-related illness in the U.S. costs over $300 billion per year, including nearly $170 billion in direct medical care and more than $150 billion in lost productivity.
As the world‘s largest retailer and a major seller of tobacco products, Walmart has faced criticism from public health advocates who argue that the company is prioritizing profits over customer health and well-being by making tobacco more accessible.
In response to these concerns, Walmart has taken some steps to limit tobacco sales and promote smoking cessation. In addition to raising the minimum purchase age to 21 and eliminating e-cigarette sales, Walmart has also:
- Stopped selling tobacco products in several stores in markets with high youth smoking rates
- Required age verification for all tobacco purchases, regardless of age
- Moved tobacco products to locked cases or behind the counter to deter shoplifting and underage sales
- Trained associates on responsible tobacco sales practices
- Provided free smoking cessation programs to associates and their families
- Donated to smoking prevention and cessation programs in local communities
However, some argue that Walmart could do more, such as ending all tobacco sales or using its influence to push for stronger tobacco control policies at the local, state, and federal levels. As the company faces increased pressure from investors and regulators to address its role in the tobacco epidemic, it remains to be seen how Walmart will balance these competing priorities in the years to come.
The Future of Tobacco at Walmart
So what does the future hold for tobacco sales at Walmart and other major retailers? While it‘s impossible to predict with certainty, several key trends and factors are likely to shape the landscape in the coming years:
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Continued decline in smoking rates. As fewer people take up smoking and more current smokers quit, overall demand for cigarettes and other tobacco products is likely to keep falling. This could make the category less profitable and attractive for retailers over time.
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Increased regulation and taxation. Federal, state, and local governments are likely to continue enacting stronger tobacco control measures, such as higher excise taxes, flavor bans, marketing restrictions, and retail licensing requirements. This could make tobacco an even higher-risk and lower-margin category for retailers.
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Growth of alternative nicotine products. While e-cigarette sales have stalled due to regulatory crackdowns and health concerns, other emerging products like nicotine pouches and heated tobacco are gaining traction with some adult consumers. Retailers will need to navigate an increasingly complex and fragmented market for nicotine products.
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Pressure from investors and partners. Institutional investors and corporate partners are increasingly using their influence to push companies like Walmart to reevaluate their role in the tobacco trade. This could lead to more retailers divesting from tobacco sales or facing negative financial and reputational consequences.
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Changing consumer attitudes. As more consumers prioritize health, wellness, and corporate social responsibility, retailers that continue to sell tobacco may face backlash and calls for boycotts. This could be especially challenging for a company like Walmart, which has worked hard to rebuild its brand and reputation in recent years.
Ultimately, the future of tobacco sales at Walmart and other retailers will depend on a complex interplay of economic, political, social, and technological forces. As consumers, it‘s important to stay informed about these issues and advocate for policies and practices that prioritize public health over private profits.
If you or someone you know is looking to quit smoking, there are many resources available to help, including:
- 1-800-QUIT-NOW: A free, confidential helpline that connects callers with trained counselors and local quit-smoking resources in their area.
- Smokefree.gov: A website from the National Cancer Institute with information, tips, and tools to help smokers quit, including a free text messaging program and mobile apps.
- Nicotine replacement therapy: Over-the-counter products like nicotine gum, patches, and lozenges that can help reduce cravings and withdrawal symptoms. Talk to your doctor about which option may be right for you.
- Prescription medications: Drugs like varenicline (Chantix) and bupropion (Zyban) that can help reduce the urge to smoke and improve quit rates. Requires a prescription from a healthcare provider.
- Support groups: In-person and online groups like Nicotine Anonymous that provide peer support and encouragement for people trying to quit smoking.
Remember, quitting smoking is one of the most important things you can do for your health and the health of those around you. It‘s never too late to start your journey to a tobacco-free life.
