How to combat declining sales

For the last few decades, cigarettes have been the #1 sales driver at just about every convenience store, corner store and mom and pop's liquor store. Despite heavy taxation in states like New York and California, increased public awareness of the negative impact of cigarettes, and economic recession,  cigarettes are still the top grossing category in nearly every store where sold.
Compounding the problem is nearly 1 in 10 tobacco sales at gas stations/convenience stores are sold to people under the age of 18, according to a study from HealthDay News.

As a rule of thumb, cigarette sales generally account for ~25% of total sales dollars.  Of course, the problem is cigarette sales continue to decline year after year. Healthier habits and increasing tax prices are forcing consumers to quit or find other less expensive addictions. This has left many store owners and retailers scrambling to find new ways to increase sales and more importantly keep their regular customers coming through the doors.

Enter the "Electronic Cigarette" or "E-cigarettes". The personal vaporizer is a battery-powered device that provides inhaled doses of nicotine by way of a vaporized solution. The vapor provides controlled amounts of nicotine as well as physical sensation similar to that of real cigarettes. Plus many smokers trying to quit crave the physical sensation of holding the cigarette to their mouths and taking a puff.
The e-cig's help accomplish what the patch does not.

The health effects of using e-cigarettes are currently still in testing and the long-term effects are unknown. However, the manufactures of e-cigarettes claim because there is no combustion, there are no harmful carcinogens to cause the health problems that actual cigarettes do.

Since the FDA has allowed the sale of e-cigarettes by those with tobacco licenses, retailers can take advantage of this hot new item. Retailers have the opportunity to get ahead of the competition by simply carrying e-cigarettes, which is a new sales platform they may help offset the decline in traditional cigarettes. Customers often purchase a "starter kit" first which contains the Mouthpiece, or cartridge, the heating element, and a battery or charger. One cartridge is generally the equivalent to one pack of cigarettes and a 5pk cartridge is touted as a cost-effective carton of cigarettes.

While introducing electronic cigarettes may not completely offset the decline of traditional cigarettes, it will certainly help lessen the impact and may also help drive in new business and customers.
Upon the introduction of "e-cigs" to many of my 7-eleven stores in Northern California, sales quickly jumped to approximately $800 a month with a Gross Profit margin of ~38% depending on manufacture. The first vendor we used was a company called  X-hale 02 cigarettes. The X Hale O2 starter kits  sale for $19.99. Their website is http://e-hookah.com.