Posted on 02/07/2014 1:51:09 AM PST by Tolerance Sucks Rocks
When CVS Caremark Corp. Chief Executive and President Larry Merlo announced that his drugstore chain would stop selling tobacco products , one of the first to respond was the president of the United States.
The speed of the president’s statement indicates that CVS’s decision was likely coordinated with the White House. Every day, countless business decisions are made without any comment from the White House. Something unusual was going on.
This is troubling. It gives the appearance of preference for those who curry favor with the powerful, and it squeezes out smaller entrants who can supply innovative products and services to consumers. What do you think about CVS’s decision? Take our poll.
The president said: “I applaud this morning’s news that CVS Caremark has decided to stop selling cigarettes and other tobacco products in its stores, and begin a national campaign to help millions of Americans quit smoking instead.”
The president congratulated Merlo by name, as well as “all who helped make a choice that will have a profoundly positive impact on the health of our country.”
As long as businesses are acting within the law, they should not be trying to please the federal government. Nor should they refrain from acting because they expect government’s praise. There is no upside to such behavior, and much downside.
As everyone knows by now, CVS, the No. 2 drug store chain, will give up $2 billion in revenues by halting sales of tobacco products. CVS’s stock declined in response to the announcement, but it is not clear that shareholders’ long-term interests will be undermined.
(Excerpt) Read more at marketwatch.com ...
Yep.......It's likely CVS will become the primary dispenser of drugs under whatever Obama drug plan goes into effect.
While all pharmacies are basically the same when it comes to selling prescriptions via their stores, the BIG money is in the 90 day mail order programs which are currently administered by the individual's current health plan.
For example, my maintenance drugs have to be ordered thru CVS-Caremark.
Bingo! You nailed it!
What will CVS and this CEO be getting in exchange? That’s the 2 billion dollar question.
Never mind the huge alcohol displays 20 feet from the cigarettes. You know the one, right past the entire aisle of CVS branded candy. And if those don’t get you, why the entire checkout stand is one big candy aisle. And lest we forget, don’t forget to drop by the pharmacy for your “don’t ask, don’t tell” morning after pill.
Bet CVS gets an ACA exemption.
My daughter is trapped by her med. insurance into CVS for her prescriptions.
Every time she goes to get a Rx filled they have to order the drug. Not something exotic, simple antibiotics, etc.
Nine times out of ten, when I shop at CVS, I am in the line behind someone buying cigarettes.
CVS thinks they have made a deal with Obama for favors in Obamacare. Just wait, the double cross is coming CVS, just like it did to Christy.
CVS is now in first place for the next fed bailout !!
By geting rid of tobaco products, CVS will have more shelf space for healthy products like beer, wine, Doritos, Pringles, and other artery clogging waist enhancers.
Walgreens supports AARP.
Bingo.
It’s all about 0Care. They’re appointed navigators, I’ve read.
Isn’t ironic that 0 would “applaud this morning’s news that CVS Caremark has decided to stop selling cigarettes and other tobacco products in its stores, and begin a national campaign to help millions of Americans quit smoking instead”, but thinks it’s okay to keep smoking pot?!
Strange days, indeed.
Or, make room for smoking cessation meds and programs. Which, like the diet industry, have a high rate of failure and repeat business. Cha-Ching!
I wonder what the reaction would be if CVS announced that they found selling the Plan B abortifacient and infant products contradictory, and decided to stop selling Plan B?
I’m just saying...
*sigh*, haven’t we covered this before, somewhere else?
CVS isn’t giving up $2 billion in revenue. From their perspective they’re trading $2 billion in revenue from a low margin, declining product (tobacco) for $2 billion from a high margin rising product (health services and the associated revenue from filling prescriptions written in their stores.
And that’s just the first year. They’re projecting that they will see gross and net increases in the following years, while sales of tobacco products continue to decline.
Yes, it poses a possible risk, but only if the health services aspect doesn’t pan our. So it’s still a good bet/decision from a practical business standpoint.
but Walgreens does sell tobacco products...
Who cares? Its a pharmacy not a tobacco shop. Their prices on pipe tobacco are too high anyway. Pharmacies used to sell gasoline when the first cars came out. It was the only place you could buy it. Now they don’t. Who cares? They used to sell Laudenum over the counter too. Times change.
Amazing, isn't it? Nobody goes into CVS just to buy cigarettes; now they'll go elsewhere for all of those other items. I would also argue this move by CVS is HARMFUL TO SMOKERS. It would've been far more helpful to keep selling tobacco products, but offer deep discounts on anti-smoking drugs and free stop smoking clinics to CVS card members who smoke. The approach of not selling cigarettes shows a complete lack of careful thought by them.
That being said, I can't imagine why smokers buy their cigarettes at their drug store, and probably use their courtesy discount card. It identifies them as smokers for the nanny state to rehabilitate. Better they buy their cigarettes cash, no courtesy card, at the local gas station. Unless they want Nanny raising their insurance costs and forcing them into rehab programs.
PS: I'm a former smoker; quit over ten years ago, after 40 years of smoking. People will quit when their ready, even if it's difficult. JMHO
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