“Ok, to recap from the other thread: CVS is discontinuing sales of low margin tobacco products (less than 2% of their gross revenue) so that they can begin offering higher margin health services (in store clinics). Projected revenue lost from tobacco sales in the first year is $2 billion. Projected revenues gained from health services the first year is ... $2 billion.”
What does one have to do with the other? Are the new CVS health services going to be installed in the cigarette rack behind the counter?
It’s a crock of crap publicity stunt to say “we’re thinking of you so no more smokes”.
From the more in depth articles (like the BusinessWeek one) it seems like they’re trying to form partnerships with outside providers. They believe that getting rid of tobacco will give them a leg up in that regard.
Knowing the emphasis places like Kaiser put on non smoking, it’s a logical rationale.
There is a carrying cost to sell tobacco product inventory.