This Obama?
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 ...
Nanny State PING!
I still find this hard to believe. I’m not a smoker, but there is a CVS near me and I often go there to get photos developed and pick up odd items. My impression is that about a third of the store’s customers show up to buy cigarettes, and often pick up a few additional items while they are there.
Rent-seeking. Somewhere in this is a deal or an expectation that Obama will grant boons to CVS.
This is inevitable when you have a government that is this big, this powerful and this lawless.
It’s being reported this morning that CVS is no longer carrying odd items.
If this is such a good idea then why wait until October to implement it? Start now by selling all of the cigarettes they have then not order any more.
Talk about an opening for Niche Marketing!!.....Smoke shops will spring up next door to CVS store all over the nation!
As long as they continue to carry additional items, it should not be a problem.
Oh hell yes.
At least one of the local TV stations in Miami gave CVS the full treatment of praise, being VERY OBVIOUS about OBAMA PRAISING THE DRUG STORE...
it was revolting.
Hmmm, maybe they’re going to be the sole source of socialized prescriptions when der fuehrer makes more strides in the field of socialized health care?
yep, Walgreens, Rite-Aid... CVS isn’t the only game in town...
CVS is planning on partnering with insurers and health care systems. This gives them an edge over their competition. Would not be surprised if buried somewhere in the ACA is regulations prohibiting the above from partnering with any company that sells tobacco, or alcohol. Or Firearms....
Gotta make room for pot.
ANY company CEO who decides to give up TWO BILLION dollars in this horrible economy should be canned. Immediately.
If not, I would be an immediate seller of the stock.
The CEO should be only interested in getting as much revenue through the door as possible. THAT IS HIS/HER ONLY JOB.
You can partner with health systems and also sell legal products. The two are not mutually exclusive.
Bet that Walgreens and Riteaid will also be partnering in the future; that does not mean they cannot sell cigarettes also.
Exactly!
And if it is so easy to replace revenue, then why don’t all of their competitors simply mimick what CVS is doing? Hint: It ain’t easy to replace lost revenue.
Actually, for every CVS in my area, and there are lots, there's a competing Walgreens.........Fortunately I get my prescriptions from a local Walgreen so CVS hasn't lost my business in that respect since they never had it.
This Obama?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.