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"We've seen increase in traffic and a nice bump in the comp that goes with it." When asked what was motivating Dollar General to introduce tobacco--Family Dollar had suffered a backlash from anti-tobacco groups after it jumped into the category--Dreiling said it was a matter of customer demand, which he observed first-hand after visiting Dollar General stores about five weeks ago

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Policy responses in recent years have included banning common carrier delivery of cigarettes[6], greater law enforcement activity on interstate roads[7], differential tax rates near low-tax jurisdictions[8], and cracking down on tribal reservations that sell tax-free cigarettes.[9] However, the underlying problem remains: high cigarette taxes amount to a price prohibition on the legal product in many U.S