Tobacco stocks dipped after the Wall Street Journal said Walmart Inc. is ending sales of cigarettes in some stores, prompting concern other retailers may do the same.
Altria Group Inc., which sells Marlboro cigarettes in the U.S., dropped 3.2% in morning trading.British American Tobacco Plc fell 1.7% higher. Imperial Brands Plc, the maker of Kool cigarettes, fell 0.4%, trimming earlier gains.
Walmart is exiting cigarettes in some stores in states such as California, Florida and Arkansas after an internal debate at the retailer, the newspaper said, citing people close to the situation it didn’t name. In some shops, the cigarette shelves are being replaced with more self-checkout registers and candy offers.
The newspaper cited a spokeswoman saying Walmart has no plans to stop all cigarette sales, and that the moves are related to using space more efficiently.
The retailer made its policy on selling guns and ammunition stricter in previous years.
Walmart isn’t the first retailer to stop cigarettes sales. Target did so in 1996.