According to a report by Better Retailing on January 2, sales incentives for several lines of Imperial Brands (IMB) have been suspended. Many retailers say the rewards can bring in more than £1,000 a year to some stores.
For many years, the IMB has encouraged shops to sell their products at prices below the recommended retail price (RRP) and pay a corresponding fee for the discount on each packet of tobacco. These payments were made via IMB’s Ignite Rewards card.
However, less than a week before Christmas, five shopkeepers went to Better Retailing and revealed that IMB representatives had told them that incentives for many previously covered product lines would be suspended immediately. A message sent to stores by the IMB showed that the suspension affected all “Price It Plus & Sell IT” activities. In addition, these incentives are expected to be restored within three months. IMB also added that representatives of the company will enter the store for the current planned “deregistration”.
When asked about the change, an IMB spokesperson told Better Retailing,
- “To improve its digital architecture, some of the incentives in the Ignite program will be temporarily put on hold to ensure that retailers apply for incentives more smoothly.” It is estimated that these incentives will be restored in a few months, and we will continue to update retailers on the situation.”
One retailer said the change was due to IMB shifting its focus to its newly launched cigarette brand “Paramount “. “Paramount” was launched in November 2024, with exclusive teller data from thousands of stores obtained by Better Retailing, and as of Dec 8. About 38% of independent stores already sell Paramount Superkings or Paramount King Size cigarettes. The average weekly sales of these two series are 116.15 yuan. Their average retail price is 11.5 yuan.
While Paramount is performing well, the retailer said removing incentives could make things more difficult for stand-alone stores in 2025. They added: “Because payments are accumulated on the card, stores are often used for savings or to pay unexpected bills. We know 2025 is going to be a tough year and this will undoubtedly make things more difficult.”
The IMB said it would use “deep discounts” on cash and vouchers to bridge the gap until the awards resume. IMB price lists obtained by Better Retailing show that prices have generally risen since January 6. For example, “Paramount” suggested that the retail price would be raised from $11.50 to $12.10.
