Shares of cigarette makers fell Monday as Walmart plans to end cigarette sales in some US stores, The Wall Street Journal reported, citing people familiar with the matter.
Cigarettes are being removed in various markets, including some stores in California, Florida, Arkansas and New Mexico, according to the people andstore visits, the Journal reported.
Walmart (ticker: WMT), the world’s largest retailer in the US and world, is removing tobacco products from select locations where it has decided to use the space more efficiently, a spokeswoman told the Journal.
“We are always looking at ways to meet our customers’ needs while still operating an efficient business,” she said. She declined to tell the Journal how many locations will continue to sell cigarettes but said Walmart isnt halting all tobacco sales.
Barron’s has sent an email to Walmart asking it to comment on the story from The Wall Street Journal.
Sales of cigarettes are generally less profitable for Walmart than some other items sold near the front of stores such as candy, according to the people family with the situation.
Philip Morris International (PM) declined 0.5% in premarket trading and Altria (MO) fell 1.7%. US-listed shares of British American Tobacco dropped 1%.
Write to Joe Woelfel at [email protected]
Credit: www.marketwatch.com /