Supermarkets are considering a once-unthinkable move to ditch tobacco from their shelves, as the illegal trade makes stocking cigarettes almost unviable.

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The immense scale of the loss of legal sales and retailers revenue is clear from financial reports issued this season.

Quarterly data posted by Woolworths on Wednesday showed sales down 51 per cent compared with the same three months in 2024, while Coles sold 30 per cent less tobacco across the past financial year.

Sales at wholesalers Metcash are down almost half compared with four years ago

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