Posted on 08/06/2015 10:40:07 AM PDT by rktman
Last September, CVS became the first major pharmacy chain in America to stop selling cigarettes and other tobacco products in its stores. The drug store chain said it was the right thing to do -- even though it would hurt sales.
Now CVS (CVS) is detailing just how much the tobacco ban is impacting the company. While prescription sales continue to rise, general merchandise sales tumbled nearly 8% last quarter on a same-store basis.
CVS blamed the slump on the tobacco ban. The company said front-store sales would have been flat compared with the year before if they didn't make the change.
(Excerpt) Read more at money.cnn.com ...
Hold on there, Hoss. No one said anything about taking away your Viagra. I was merely making the point that the advertising for such products seems greatly disproportional to any legitimate incidence of medical need.
“....open your app and have these items delivered to your doorstep within an hour.”
Via drone. And I’m not talking about obamabots either. :>}
Sorry, I won’t be around in 50 years when the “scientific” MJ studies come out decrying the use of it because it’s not good for you. Unless I make it to 118. :>}
Heck, I still have to use RCS on some projects....
I'm not sure about the drones yet but for sure, we will literally have delivery trucks (similar to the brown UPS trucks) circling neighborhoods and filling orders on demand. There will be one distribution center in each metro area that these trucks will load up at.
When they started pushing cessation of cigarette sales in a commercial, they had the nerve to insert an applause track at that statement. A month or so later, that applause was faded into the background... perception of applause of the BS decision must have been “unfavorable” (like mine).
I hope their wonderful public health decision hurts their bottom line in a horrible fashion, I don’t shop there anymore
“I hope their wonderful public health decision hurts their bottom line in a horrible fashion, I don’t shop there anymore”
Same here, have not been in since they BANNED a legal product.
Besides, the prices there are insane.
Somehow I doubt this comes as a surprise to CVS. I’m sure they crunched the numbers, saw cigarette sales were declining anyway, due to increased taxes almost every year and simply more people quitting every year, and simply decided to get out in front of the reality and stop the sales before everyone else. For publicity sake.
It never made sense to me anyway, for a pharmacy, a business allegedly IN business to make money by helping people be healthier, would sell cigarettes and other tobacco products. It makes no sense, other than a financial reason to do so. But since (probably) sales of cigarettes were down anyway (due to the reason above) they decided to end it early. Rip the bandaid off so to speak, realizing they would take a hit initially but in the long run, the benefit to their image as a pharmacy (as well as projected sales of cigs diminishing anyway) offset the initial financial losses in their opinion.
I say all of this as a pack a day smoker myself. I’m not offended at all that they stopped selling cigarettes. It makes a heck of a lot more sense as a business supposedly in the business of helping people’s health to not sell one of the most toxic legal products on the market.
Now if they really wanted to take the moral high road (so to speak) they would stop selling anything but prescription and over the counter drugs. No Doritoes or sodas. No candy or even beer and wine (which they do indeed sell in states like Virginia where one can buy such beverages at virtually any store). So there is a bit of hypocrisy there. But it only serves my claim more that ultimately this was a financial decision really. They saw cig sales declining anyway and decided to get out of Dodge early.
40% gain in a year is very, very impressive. Yeah I know the addicts have their panties in a twist, but 40% gain is outstanding.
“Do you have any doubt that they’ll sell MJ once it’s regulated and taxed? “
Not to mention millions in sales from ‘home remedies’ ...
Yeah...GIT off my process tree!
I don’t smoke any more, but I used to buy my cigarettes at CVS because it was the closest place to go. Guess what, I would also pick up milk, bread and other assorted items when I went into the CVS. When they stopped selling cigarettes I started going somewhere else. So they probably lost $500+ a month in revenue from me with that decision. Multiply that by a few hundred other people doing the same thing and you are soon talking about a LOT of money. Stupid decision on their part ...
CVS could probably recoup their losses by selling ammunition. I guess I shouldn’t hold my breath waiting for that to happen.
That's a bit misleading. According to this article, CVS/Caremark will no longer include Viagra in its formulary, meaning CVS will still fill prescriptions for it but if you use their prescription-benefit plan you have to accept Cialis instead.
http://finance.yahoo.com/news/cvs-strips-viagra-other-top-213744651.html
They’re a private business and can do as they believe. But I have to guess they are liars and cut cigs because they hate smokers. BTW, I don’t smoke.
CVS and Rite Aid are both far more expensive—at least in non-prescription items, since I only have one scrip I get mail order—than Walmart. Things like deodorants, shampoo, body wash/soap, and presumably other off the shelf items that female freepers might use, are far too expensive at dedicated drugstores than they are at Walmart or Target. If sales are hurting, I’m guessing that’s the reason.
The investors liked what they saw with a 40% increase in stock price in the last year. It’s a shame this gets wrapped up in the pro/anti smoking debate but on the financial side the investors love it.
“So they probably lost $500+ a month “
A pack a day buys a new car!
LOL!
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