Walmart Inc. eliminates tobacco sales in some stores, citing "business decision" on reversal of tobacco sales. Altria Group Inc., a Marlboro tobacco retailer in the U.S., declined sharply in about three weeks, while other tobacco companies declined or gained profits.
The change follows an internal vendor debate and affects stores in states including California, Florida, New Mexico and Arkansas, The Wall Street Journal reported earlier, citing people close to the situation who did not comment. In some areas, cigarette shelves are replaced with self-regulation and the supply of sweets and food.
Walmart has no plans to stop all tobacco sales, and steps are being taken to make the most of the space, the Journal said, quoting a company spokesman. The retailer declined to say how many of its 4,700 stores in the U.S. which will stop selling tobacco.
"We are always looking for ways to meet the needs of our customers while conducting a successful business," Walmart said in a statement. "As we continue to focus on the tobacco sector, we have decided to stop selling tobacco in certain stores."
Altria dropped 3.1% to $ 51.95 at 11:44 a.m. in New York after sliding by almost 3.9% in a major intraday decline since March 8. British American Tobacco Plc dropped below 1% in London after rising by 1.2%. Imperial Brands Plc, which manufactures Kool cigarettes, developed less than 1%, reducing previous profits.
The retail giant has stopped selling electronic cigarettes in 2019. Walmart has also intensified its policy of selling firearms and ammunition in recent years.
Walmart to Reduce Bullet Sales After Shooting Store.
Walmart's decision to stop selling tobacco in other U.S. stores it will not harm tobacco manufacturers, according to analyst Goldman Sachs Group Inc. Bonnie Herzog. A retailer in Bentonville, Arkansas represents less than 5% of the volume of the tobacco industry, moderate.
"Smokers will still buy cigarettes, and will simply go to other stores such as shops, dollar stores and tobacco shops," he wrote to customers.
Walmart is not the first dealer to stop the sale of tobacco. Target Corp. did so in
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