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flag Illegal tobacco trade causes major sales drops at Australian retailers, with nearly 40% of sales now underground.

flag Australian retailers are scaling back tobacco sales amid a surge in illegal trade, with Woolworths reporting a 51% sales drop and Coles a 30% decline, while wholesalers like Metcash saw a $1.3 billion decline over four years. flag The underground market now accounts for nearly 40% of sales, driven by cheaper, unregulated cigarettes, and evidence from Western Australia suggests smoking rates may be rising. flag Retailers including Ritchies are removing tobacco from stores due to low profits and high inventory costs, criticizing weak enforcement in Victoria compared to NSW and Queensland. flag While Woolworths has no plans to quit, Coles did not respond, highlighting growing uncertainty over the future of legal tobacco sales.

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