Responsible retailers have reported significant financial losses as a result of the growing market in illicit tobacco and vapes.
According to Glasgow-based retailer Shahid (Mo) Razzaq, local rogue traders have left him £1,500 a week out of pocket, that’s £78,000 a year.
“We have a shop 500 yards away from us who are selling illicit vapes and tobacco,” said the owner of Premier Mo’s Blantyre. “We have reported them several times. They’ve been raided twice, but because they keep limited stock on the premises they reopen within two hours.”
The illicit trade is denting weekly sales by 20% at Peter Juty’s Costcutter store in Culverstone, Kent.
“We have shops six miles away from us, who we have heard are selling fake stuff. In my estimation we must be 20% down and because of the latest price increases, we are expecting for this to go higher,” said Peter.
Meanwhile, One Stop retailer Priyesh Vekaria is losing £300 to £500 a week as a result of the growing availability of illegal tobacco and vape products in his local area.
Priyesh estimated the losses - equivalent to between £15,000 and £26,000 annually - are driven by both lost sales and reduced basket spend as consumers turn to cheaper, illegal alternatives elsewhere.
“The illicit tobacco and disposable vape market is having a noticeable impact on our sales,” said Priyesh. “Customers regularly reference cheaper, illicit alternatives being available locally, particularly within the disposable vape category.”
“Retailers simply cannot compete with untaxed, non-compliant goods sold at a fraction of legal prices,” Priyesh stressed.
According to Vidur Pandya, customers openly admit they are buying black-market goods elsewhere for less.
The Northamptonshire-based retailer said he was £9,000 a year worse off after one customer switched to illegal cigarettes.
“I was speaking to a regular who used to buy weekly outers from me but hasn’t for a while now because his friend gets them for him from the illicit market for a fraction of the price,” said Vidur.
“I’m sure there will be many more who now buy illicit vapes and tobacco, so the overall figure will be much higher annually”.
Booming black-market in illicit vapes
In November, chancellor Rachel Reeves announced new rules to tackle the booming black-market in illicit vapes as part of the government’s plans to “protect Britain’s high streets”.
Reeves said the HMRC would “crackdown on illicit businesses that blight our high streets and undercut illegitmate firms”. The Border Force and HMRC are to be armed with “sweeping new powers” to seize illegal vapes on the spot with rogue traders that flout the rules facing £10,000 fines and a potential prison sentence.
On top of that, all vapes sold in the UK will be required to carry a digital duty stamp from October 2026 to help consumers and enforment officers identify fakes.
Lincensing scheme
The Tobacco and Vapes Bill progressing through Parliament includes powers to introduce a licensing scheme for retailers selling tobacco, vape and nicotine products in England, Wales and Northern Ireland.
The measure has been widely welcomed by independent retailers, who say the scheme could be a “game changer” in tackling rogue traders.
“If implemented, this could be very positive news,” said Neil Godhania of Neil’s Premier. “Currently, legitimate retailers face tough competition as barbershops, pubs, and other establishments have started selling these products, often without proper oversight.”
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