Industry Analysis & Industry Trends
The Cigar Lounges industry is mainly affected by per capita disposable income and competition from e-tailers (i.e. web retailers). Since the recession, these drivers have negatively affected the industry, causing US consumers to reduce spending on cigars and seek out cheaper cigars online. As a result, IBISWorld estimates that revenue will decrease at an average annual rate of 2.3% to $3.92 billion over the five years to 2012. The recession did have one positive effect on the industry, though, particularly in 2008. Although many retail industries declined in that year, the Cigar Lounges industry posted growth.... purchase to read more
Industry Report - Industry Investment Chapter
The Cigar Lounges industry carries a moderate level of capital intensity. For every $1.00 spent on labor, the average industry firm will invest roughly $0.27 in capital equipment. The most prevalent piece of capital present in all cigar lounges is a strong air filter or ventilation system. Cigar lounges utilize air filters in smoking rooms in order to prevent smoke from escaping into the retail shop or outside of the establishment. Additionally, cigar lounges must purchase a humidifier for a walk-in humidor or multiple cabinet or table humidors in order to keep the cigars and tobacco products from drying. Other capital equipment required includes largely computerized, automated devices like cash registers, inventory control systems or point-of-sale (POS) systems... purchase to read more