S. Korea Sees Signs of Tobacco Hoarding amid Talks of Raising Tobacco Prices

Source from:  Maeil Business Newspaper & mk.co.kr (kr)  03/12/2013

Tobacco sales are rapidly rising at South Korea's large-scale discount stores and convenience stores as the talks of raising tobacco prices began. Tobacco sales at large-scale stores swung from contraction to abrupt growth, following the discussion over raising cigarette prices last Wednesday, said sources in the industry last Sunday.

Cigarette sales jumped 30 percent at Lotte Mart since last Wednesday. Tobacco sales rose 3,000 packages per day on average between March 6 and 8 compared to the same period last year, said Lotte Mart. Tobacco sales had declined 15 percent on-year between March 1 and 5 before the talks of cigarette price hike.

Such surge in tobacco sales are unprecedented since 2009, when the combination of recession and a national campaign promoting quitting smoking led to annual eight to 15 percent contraction in tobacco sales. Cigarette sales at Lotte Mart reached the highest in 2008 and then shrank 11.3 percent in 2009, 8.7 percent in 2010, 15.7 percent in 2011 and 15.6 percent in 2012.

Cigarette sales also modestly rose at convenience stores after the discussion began to raise tobacco prices.

Tobacco sales at GS25 rose 4.5 percent last Wednesday from that of a week ago and 11.6 percent last Friday. Enditem