CVS To Stop Selling Tobacco, Sacrificing $2 Billion In Sales

[Kryyptyk]

"CVS, the largest pharmacy chain in the United States, will stop selling cigarettes and other tobacco products in all of its 7,600 stores by October 1, its parent company CVS Caremark announced this morning. It is the first time any retailer has ever dropped this deadly cash cow, and it is part of a major shift in direction for the drugstore giant."

Kicking The Habit: CVS To Stop Selling Tobacco, Sacrificing $2 Billion In Sales For Public Health And Future Growth - Forbes

On one hand, I'm really happy to see this. Its about time a retailer took a stronger stance against tobacco.
On the other hand, however, if ecigs and vape supplies are termed as 'tobacco products' will they also be included in this?
I know that CVS doesn't sell ecigs at the moment, though they do sell NRTs. It would make perfect sense to sell ecigs as a viable alternative to the cigarettes they are ditching.
Unfortunately, business sense isn't exactly on good terms with commen sense these days...

 

[Rickajho]

Sheesh - doesn't anyone proof read their work any more? I'll pass on pointing out the "CVS Storys" etc. in the article and move on to the point: CVS isn't doing this to be all nicey nicey. As was mentioned more than once in the article CVS/Caremark wants to expand their horizons in the health care industry. If they are angling to get joined at the hip with insurance plans and have more direct contact services with patients... just what the hell is CVS planning on turning itself info anyway? Consumer Value Store seems to be irrelevant based on the moves they are making. Perhaps it's time to drop the name along with the cigarettes.

 

[cyberwolf]

It would be almost too much to hope for to have CVS continue selling ecigs after this announcement. I'd love to see that, though. Assuming that they really are looking to align themselves with the healthcare and insurance juggernaut, then they'll likely take up their negative stance on ecigs.

 

[Sbowlden]

Sine the move is based on increasing their Caremark footprint and is independent of the retail side of their business, I would be very surprised to see ecigs in CVS stores.

 

[Funk Dracula]

Yup, well on the pathway of being a streamlined one stop depot for Big Pharma.

Soon the 99% will be able to walk in to a CVS, get seen by a "doctor," and peddled prescription drugs.

That's neither here nor there, just me being cynical.

I'm for one am always happy to see BT suffer more... The flipside of this blade is if this kind of move becomes more trend worthy (Walgreens, Walmart, etc), how much will that influence the immediate need to "sin tax" e-cig products by legislatures?

 

[Kryyptyk]

I'm for one am always happy to see BT suffer more... The flipside of this blade is if this kind of move becomes more trend worthy (Walgreens, Walmart, etc), how much will that influence the immediate need to "sin tax" e-cig products by legislatures?

My mode of thinking exactly. This is going to seriously dip into the profits of BT. So far the losses have been from voluntary quitting and switching to NRTs and vaping. This is a game changer. I think we might see a more desperate BT as a result.

 

[exnihilo]

2 billion in sales for BT, have you guys ever seen the profit margin of tobacco for the reseller? They actually sell at a loss and are then reimbursed by BT, after the fact.

Sent from my LG G2, using Smack-a-talk HD.

 

[Kryyptyk]

2 billion in sales for BT, have you guys ever seen the profit margin of tobacco for the reseller? They actually sell at a loss and are then reimbursed by BT, after the fact.

Sent from my LG G2, using Smack-a-talk HD.

No, no. $2 billion in sales for CVS. Thats not counting BT's take.

Really I think this is just the first domino to fall, the rest will come later and we'll see what happens.

 

[AlexStiff]

I'd actually be VERY happy if when they stop selling analogs, they sold more ecigs like Blu. Now, i'm not a big fan of Blu, but it did expose me to the vaping community and got me hooked on the vape lifestyle. Even to the extent of wanting to work for a vape company! So I think its a smart move on their end (If they actually do start carrying more eCigs)


Now if I was still an analog smoker hearing this, id be MAD because that's where I always got mine (and it was the least expensive) hahaha.

 

[Ohms Lawbreaker]

Relax, you can still get the stuff that makes you commit suicide, or grows boobs in young boys, or makes you more leaky than an old Fasttech CE4. You know, the stuff that is so toxic some people shouldn't even get near it. The safer stuff.

 

[AgentAnia]

More on this from the Washington Post: http://www.washingtonpost.com/blogs...-by-ending-cigarette-sales/?wpisrc=al_comboNE

Interesting that in the Post article, the two comments are from the Legacy Foundation and ACA...

I have to assume that CVS is looking to curtail their sales from sundries and non-pharmaceutical products and expand into the primary health-care market. And that they're not worried about lost revenue from general sales to smokers, who will take their business elsewhere.

I'm off to Walgreens...

 

[pamdis]

They have over 4200 comments on this announcement on their FB page. Mostly negative. On one supportive comment, CVS responded:

thank you for your support of our mission to help people lead tobacco-free lives! In addition to removing cigarettes and tobacco products for sale, we will undertake a robust national smoking cessation program with the goal of helping millions of Americans quit smoking. Our program will launch this Spring. Currently we offer information on smoking cessation products and enhanced counseling programs at MinuteClinic locations and with our pharmacists.

I asked if this program would include selling e-cigarettes, but haven't received a reply.

 

[patkin]

I saw on TV that the FDA is gearing up for a two-week anti-smoking blitz and spending millions on it. I think it just started or will very soon. Maybe CVS waited to announce during that. It will be interesting to see if the FDA includes ecigs in their blitz.

 

[AgentAnia]

IMO these are yet more indicators of how successful and revolutionary ecigs are, and how desperate the antis are...

 

[AgentAnia]

Lest you think this isn't part of a well planned, far-reaching strategy, consider this: (from CVS stores to stop selling tobacco - CNN.com)

Most tobacco is sold in convenience stores, which would be "a tougher nut to crack" in terms of stopping tobacco sales, [chief cancer control officer at the American Cancer Society Dr. Richard] Wender said.

But pharmacies are a good place to start, Wender said.

And we do know that ecigs will be tossed under the bus as well. Don't we?

 

[squee]

And they aren't sacrificing $2B in sales, unless that retail space will remain empty. No, they'll just fill it up with other products and profit off of them. wonder if they'll get rid of all the unhealthful candy, too?

 

[ut1205]

What? Everyone that buys cigarettes from CVS is now going to be forced to quit smoking? Give me a break. How many people that bought their smokes there also picked up a candy bar, a soft drink, razor blades, a magazine, shampoo, makeup, ect. I'm sure that Walgreens and Rite Aid are not upset with CVS's "holier than thou" marketing move.

I don't think that in the 40+ years I smoked that I ever bought a pack from CVS.

 

[Jman8]

Time to get cigs online, even if that not be exactly legal.

 

[MorpheusPA]

Eh, I think it has more to do with streamlining the automatic checkout process. No cigs = fewer age checks = fewer human clerks.

So it's really a move to reduce their already lousy customer service to downright horrible. That puts them on a par with most other health-care companies...including the one that lost three months of my medication, blamed me, and forced me to pay $900 out of pocket because they never shipped the stuff. That was the last time I ever used the mail-in service.

What, me, cynical on this point? Never.

It's interesting to note that CVS's stock has been dropping for the last month or so. It's nothing severe, but it is a bit disturbing.

 

[yzer]

Doesn't effect me a bit. Just as long as they keep selling me the Glycerin USP I'll be happy. I'm sure CVS will continue to sell nicotine gum and other NRTs. I've never looked for e-cigs there.