Display ban an extra cost for retailers

Photo / Martin Sykes

Refitting shops to hide tobacco will cost retailers about $1520 plus GST each, the Ministry of Health says in newly published documents.

But it says the likely health benefits make it worth imposing this cost on retailers.

Associate Health Minister Tariana Turia announced on November 4 that the Government would ban retail displays of tobacco.

This policy has long been sought by health campaigners to "denormalise" tobacco, help smokers quit and reduce the number of young people taking up smoking.

In documents made public yesterday, the ministry reports on the 1002 responses to its consultation on the ban proposal, and on the findings of a shopfitting company it hired to give independent advice.

About 10,000 dairies, convenience stores and other retail outlets sell tobacco. Some, including many supermarkets, already conceal it.

The shopfitting company, which looked at 11 outlets of various kinds, concluded the costs of complying with a display ban would range from $300 to $3300, with a likely average of about $1520 excluding GST, the ministry said.

"Potential exists for retailers to employ low-cost, poor-quality solutions that will comply with the proposed changes such as keeping stock loose in a drawer or cupboard, or providing a curtain across existing displays."

The ministry said a quarter of retailers who made submissions as individuals supported banning displays.

Tobacco industry and retailer groups argued - contrary to the views of public health groups - that a display ban would have no health benefits but its costs would be overwhelming.

The ministry said "what evidence there is supports the case" for a ban, although the health benefits would probably take some years to become noticeable and would be from a range of tobacco control measures.

There was emerging evidence in Saskatchewan in Canada and Iceland that display bans might have helped reduce youth smoking rates.

Retailer groups supplied "unsubstantiated" estimates that 36 to 60 per cent of convenience stores' and other retailers' business was from tobacco.

But retailers, mainly from small shops, who had already put tobacco out of sight, indicated the change had had little effect on tobacco sales to existing smokers, as they "knew what they wanted".