The scale of Britain’s illegal cigarette market is putting legitimate convenience retailers under increasing pressure, according to a new white paper commissioned by Co-op.

The Legitimate High Street Framework, written by criminologist Professor Emmeline Taylor, argues that illicit tobacco should be viewed not simply as a trading standards issue, but as part of a wider criminal ecosystem operating through high street businesses.

A YouGov survey commissioned by Co-op found that 36 per cent of UK smokers have bought illicit cigarettes, including illegally imported or counterfeit products. Among younger smokers, the proportion was higher, reaching 49 per cent among those aged 35-44 and 47 per cent among 18-24-year-olds.

Price is a major driver. Some 62 per cent of smokers who purchase illicit cigarettes said they do so because they are cheaper.

Co-op’s undercover work also illustrates the scale of the price gap: of 24 seemingly legitimate shops visited in one small geographical area, 18 (75 per cent) were found to be selling illegal tobacco. The average price was just £5 a pack, with the most expensive reaching £8.

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“The evidence we have collated shows how shadow and illicit economies are shaping the face of high streets up and down the UK, creating an unsafe environment, impacting legitimate businesses, preventing £1.4bn reaching the public purse,” said Co-op’s director of public affairs and campaigns Paul Gerrard.

The report highlights the role of apparently legitimate premises in the illicit market. Among smokers buying illegal cigarettes, 44 per cent said they purchased them from corner shops, while 15 per cent cited vape shops and 11 per cent independent supermarkets.

Co-op’s Freedom of Information research found that councils in England visit an average of just four shops a month to investigate illegal cigarette sales and confiscate illegal cigarettes from approximately one shop every two weeks.

When councils do visit suspected premises, illegal cigarettes are found in 43 per cent of cases, with an average seizure of around 8,000 cigarettes.

Gerrard added: “Co-op has been the leading voice on tackling retail crime within our own shops, but we need government and local authorities to invest more time, money and effort into fighting the illicit tobacco trade, which is growing to unprecedented levels, as the £30m committed by the government to this issue, won’t even touch the sides of the problem.

“Increased investment now will reap long term benefits, not only to the public purse, but to drive social and commercial benefits of thriving high streets and communities.”

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