Tobacco stocks nosedived, including those of Marlboro cigarette maker Altria Group, Incorporated, as Walmart Incorporated announced its move of terminating cigarette sales in some of its stores in the United States.
The multinational retail corporation cited a “business decision” to take a step back from selling tobacco. We are interested in sharing this report with our readers, especially the smokers and investors or holders of tobacco stocks.
We think they will be affected by this latest development in the US stock market. According to the news posted online by business reports source Bloomberg, the tobacco stocks of Altria Group, Incorporated plummeted 3.1 percent to US$51.97 at 12:57 PM in New York City yesterday, Monday, March 28.
This event happened after the stocks slid as much as 3.9 percent for the largest intraday drop since Tuesday, March 8. Altria Group, Incorporated is one of the world’s largest producers and marketers of cigarettes, tobacco, and related products.
This American corporation was known as Philip Morris Companies, Incorporated, headquartered in unincorporated Henrico County, Virginia.
Moreover, Altria Group, Incorporated operates worldwide. It is the parent firm of Philip Morris Capital Corporation, Philip Morris USA, which is the producer of Marlboro cigarettes, John Middleton, Incorporated, and US Smokeless Tobacco Company, Incorporated.
Besides the tobacco stocks of Altria Group, Incorporated, Kool cigarettes Imperial Brands Plc’s stocks advanced less than one percent, trimming earlier gains. As for British American Tobacco Plc’s tobacco stocks, little was changed in London, following earlier surging of as much as 1.2 percent.
Steven Callahan is a representative for Altria Group, Incorporated. He spoke for the Marlboro cigarette seller in the United States, whose tobacco stocks have fallen the most in nearly three weeks with Walmart’s latest announcement relating to its 4,700 US stores.
Callahan cited that retailers like Walmart have the right to select the kind of products they want to sell. He also relayed that their group values their relationship with over 200,000 retailers across the United States.
As Walmart’s latest move adversely affected tobacco stocks, the Walmart shops in several US states that will be impacted are those in Arkansas, California, Florida, and New Mexico.
The cigarette shelves in some locations are already being replaced with self-checkout registers and offers of food and candy. A Walmart spokesperson said that the move of the supermarket operator is meant to utilize grocery spaces more efficiently.
We feel dismal for holders of tobacco stocks after this latest development involving Walmart ending the sale of cigarettes in some of its stores in the United States.
We think it is time these investors ponder on their investment and perhaps make some modifications to cope with the losses. Like the Altria Group, Incorporated spokesperson, Mr. Steven Callahan, we understand and respect the American grocery store operator’s decision.
We think Walmart is working towards a healthier service operation for its customers, leading it to decide against selling cigarettes.