Cigars International, the world’s largest retailer of cigars, is going to double its footprint of retail stores in the next two to three years.
Currently, the company operates six “Super Stores,” two each in Florida, Pennsylvania and Texas; though there’s a third, smaller store in Pennsylvania that is a markedly different concept than the Super Stores. Now, Scandinavian Tobacco Group (STG), parent of Cigars International and others, says it will build 6-8 more stores in the next two to three years.
One of those stores is already announced, Cigars International plans on opening up a 7,600-square-foot store in San Antonio—the first for the market—later this year. As for the other stores, STG has not announced where they might go or when they might open.
What it does say is that each store costs roughly $4-7 million in investment. So far, the Super Stores have ranged between 7,000-12,000-square-feet, though the more recent stores have been between 7,000-9,500-square-feet. Each store includes a full-service bar, large patio area(s) and an extensive selection of cigars.
This also confirms what was a long-expected plan for a large retail footprint in the U.S. For context, Cigars International operated just two Super Stores prior to 2018; in less than a decade, that number will grow to between 12-14 according to the company’s plans.
STG says that North American online and retail sales accounted for 32 percent of the company’s revenue in 2021—meaning roughly $385 million—and 21 percent of its EBITDA before special items, a measure of profit. In addition to Cigars International—which is best known for its online and catalog business—STG also owns Thompson Cigar, Cigar Bid, Cigar.com, Pipes and Cigars and Club Macanudo. Online sales accounted for 94 percent of the retail revenue and handmade cigar sales accounted for 80 percent of total retail sales. STG says that it controls roughly 45 percent of the online retail market for cigars in the U.S.