Posted on 02/05/2014 5:01:07 AM PST by Red in Blue PA
CVS Caremark is kicking the habit of selling tobacco products at its more than 7,600 drugstores nationwide as it focuses more on providing health care.
The nation's second-largest drugstore chain said Wednesday that it will phase out cigarettes, cigars and chewing tobacco by Oct. 1, a move that will cost about $2 billion in annual revenue but won't affect its 2014 earnings forecast. CVS Caremark leaders say removing tobacco will help them grow the company's business of working with doctors, hospitals and other care providers to improve customers' health.
(Excerpt) Read more at finance.yahoo.com ...
I don't imagine the margin is that high. You have to remember most of the price of a pack of cigarettes is federal, state, and local taxes.
I tried their in house health clinic and it was awful. Keep telling me I had an ear and sinus infection, when I did not. Turns out I have a jaw disorder so I was taking unnecessary medication. I think they have them just so they can get you to buy prescriptions at their store.
Unless it's offset by an increase in customers brought in by the publicity generated by their decision. I suppose the next few quarter financials will tell.
Well they do their best to hide it. I had to ask staff where it was. You could walk past it and never know what was being sold.
Screw them
They quit selling dip a while back
Yep. It’s probably part of their 0DeathCare Navigator’s Agreement. Socialist sell-outs.
And its the customers right to let them know they don’t approved
Like Cracker Barrel and the duck thingie
The hubris of their concern given over half their business is dealing narcotics
At least half
Absolutely! That’s what a free market is all about.
The Coca-Cola company makes much more than just Coke. They make bottled waters (several brands), teas (again, several brands), and a range of other "healthy" beverages (coconut water, etc.) And that's not to mention the diet/"Zero" versions of Coke's soft drinks. Indeed, the obesity ads you are criticizing so heavily specifically directed consumers towards KO's no- and low-calorie beverage options. As I mentioned above, it's clear from the ads that KO is following an emerging trend, not leading it. They know that the trend is towards health conscious consumers and away from soft drinks, and they want to make sure that consumers who give up/reduce soft drink consumption in favor of other beverages purchase their other beverages. Again, think long-term.
Soda is by FAR their biggest product. They sell water like Strum Ruger sells pepper spray. Not their main product and never will be; not even close.
And you know this.
The space dedicated to tobacco products will not remain vacant. Look for CVS to find other products with higher margins and lower regulations than tobacco to sell in that space. I think the CVS stores will discover (or maybe they already have discovered) products which will make more than the $2 billion being made selling tobacco products.
Retailers often decide not to sell products of one sort of another. Those decisions are often made based on what other products they can sell given the limited space in their stores. Those decisions are not covered by the media, but this one is. The reason for that coverage is the media’s hatred of tobacco products.
Note: The claim that CVS will lose $2 billion in profits is a government-type of economic prediction which assumes CVS will not substitute products for sale in the space now filled by the product which will no longer be sold.
You are looking at one day's performance. Heck, less than that - half of one day's performance. An intraday 1% drop (yes, it has "rebounded" a bit) in half a day is meaningless to anyone other than idiot day traders.
The current regime truly cares about power and making America, Marxist.
You honestly believe it will be that easy to make up for a loss of $2 Billion in revenue?
If that is the case, everyone should simply sell what CVS puts on the shelf where tobacco once was.
They will have a difficult time replacing this revenue an the stock market knows it as the stock is down 3 times the percentage of the over all market. If I held the stock, I would sell this morning. This is the move of a very weak CEO.
What the heck are you talking about? Big Brother? Where the hell have I said anything to advocate Big Brother? I have been defending this move as a smart long-term BUSINESS DECISION. And because I defend a private company's right to make decisions that it believes are in its long-term interests, you're accusing me of supporting Big Brother? Nonsense.
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