What if Altadis or General opened their own Retail stores?

I dont know if anyone saw my last post uder worst cigar ever but I would never shop there.

I dont think you would have the starbucks effect. Too many people are down on smoking and lets face it there just arent enough customers to support such an enterprize. Perhaps in a metropolis type setting there would be some success but nothing on the scale of starbucks. Think about it. How many people would stop in the morning for a smoke to have on thier way to work. And folks arent going to run down to the general cigar store for quick smoke at lunch. It could an effect on the mom and pop shops in the area but like I said only in a major city would they find enough people to make a profit. And another thing that would be a hurdle to get over is the lack of variety. Yes General makes many brands but there are so many more out there. I couldnt see them stocking thier competitors brands on thier shelfs.

I personally avoid the outlet type stores and warehouse places. I like personal service. I like to be greeted at the door and taken to what I'm looking for. I'm that way with groceries and anything else I shop for. If I spend a little more for that service, I figure it's money well spent. I have never been in a WalMart, my wife likes to buy groceries at Sams club, I go to the small little grocery in the town we live near. I frequent two tobacconist whenever I get into Albuquerque, the only reason I go in there is because I like the feel of their stores and enjoy talking with them. If it had the feel of an outlet type store, I'd have no reason to go in.

Re: What if Altadis or General opened their own Retail store

cigarsmoka said:

What do you guys think would happen to all our favorite local tobacconists if these two gigar giants opened their own shops and cut off all of their products? Do you think it would have the Starbucks or Blockbuster effect and put these mom and pops out of business? What effect or opportunity do you think it would leave the Boutique cigar companies? Interesting thought, curious to see what all you think. :wink:

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can't happen

they are too dependant on the current retail / online / catalog distribution channel for the sales of their cigars. they also run into problems with pricing (they can't discount and maintain pricing integrity) and would not be able to compete with their distributers on price (who can and do discount)

i could see them opening some stores in a few cities (NY, LV, Chicago, etc.)

blockbuster and starbucks are bad examples for comparison. the entered the market as direct sellers. there was no channel conflict / dependance