CVS Caremark to Stop Selling Tobacco at all CVS/pharmacy Locations

[NickNitro]

As a former smoker of 4 years who quit cold turkey I know how it is to have an addiction to tobacco. I also understand the severe health risks involved (some I experienced myself).

Do you think this is a good plan. Do you think other companies will follow? CVS is not a small company...this is not a mom and pop shop...this is a multi million dollar corporation cutting ties with the Tobacco industry.

Could this cripple sales of tobacco? What are your thoughts.


CVS Caremark (NYSE: CVS) announced today that it will stop selling cigarettes and other tobacco products at its more than 7,600 CVS/pharmacy stores across the U.S. by October 1, 2014, making CVS/pharmacy the first national pharmacy chain to take this step in support of the health and well-being of its patients and customers.

"Ending the sale of cigarettes and tobacco products at CVS/pharmacy is the right thing for us to do for our customers and our company to help people on their path to better health," said Larry J. Merlo, President and CEO, CVS Caremark. "Put simply, the sale of tobacco products is inconsistent with our purpose."





http://info.cvscaremark.com/newsroo...top-selling-tobacco-all-cvspharmacy-locations

 

[HauntedKnight]

They are going to lose a ton of money, but ultimately it won't change anything. Especially if you are already addicted, it won't really matter where you have to go.

 

[NickNitro]

I'm talking about their move to care for their customers health rather than feed money into an evil corporation. Do you think this is a smart idea? Could this be a revolution of major corporations backing away from the Tobacco industry?

They may lose revenue but I for one am happy to see a company take a stand against something that clearly has horrible health risks. Goes to show some companies don't all bow down to the all mighty $

Would companies like Walgreen's or other's follow?

 

[PemLam]

As a non-smoker this is a non-issue to me, however if I was a stock-holder in this company I would be beyond pissed off. While tobacco products aren't healthy, they are a massive revenue generator for stores like CVS and Walgreens, etc. By cutting all tobacco sales, the shares will undoubtedly drop in value.

 

[charl_huntress]

When I smoked I never really bought cigarettes from CVS. It was a hassle and easier to get them from the liquor store. It's usually cheaper too.

 

[PemLam]

I'm talking about their move to care for their customers health rather than feed money into an evil corporation. Do you think this is a smart idea? Could this be a revolution of major corporations backing away from the Tobacco industry?

They may lose revenue but I for one am happy to see a company take a stand against something that clearly has horrible health risks. Goes to show some companies don't all bow down to the all mighty $

Would companies like Walgreen's or other's follow?

It's all well and good to "take a stand" against the evil tobacco companies Nick, but when the loss of revenue ultimately ends up costing profits, then the company will have to find some other method of reducing costs and generating revenue. What do you think that will be? It'll probably end up costing jobs and/or cause an increase in prices for their already over-priced merchandise.

 

[Teelie]

I think it's a good idea, one that is long overdue. They are a pharmacy. They are meant to be in the health business.

Would people praise a hospital that decided to sell tobacco? Would you consider that a good investment?

 

[Wolfwood]

I have to imagine that this choice was fueled by the fact that cigarette sales weren't a major portion of their yearly profits. It might be a situation where the positive public image and publicity they'll receive outweigh the potential loss in profit.

 

[charl_huntress]

^^Agreed.

Interestingly enough...I went to CVS to buy the Nicoderm patches to quit smoking when I did, and they were right next to the cigarettes. Of course, I had a moments indecision about quitting because the patches were like $50 and a pack was $5...lol

 

[PemLam]

Tobacco sales generate approximately $2 billion in annual revenue according to their own statements. (http://www.dailyfinance.com/2014/02/05/stock-market-today-cvs-ends-tobacco-sales-and-hbo/)

I applaud their efforts from a health stand-point; I just don't think it's a smart move from a business perspective.

Ultimately, as I said in my first post, this is a non-factor to me because I'm a non-smoker. I probably only go into CVS or Walgreens a couple times a year on an impulse buy for soda or munchies.

 

[Teelie]

I think that from a business perspective you have to look at more than money. It's the most short-sighted, least-intelligent and worst way to run your business.

If you do everything solely to maximize your profits, you'll end up not only reviled but finding that people openly and actively rejecting your business. And eventually, have no business.

That CVS is taking a very bold stand is laudable. $2 billion sounds like a lot but when it's $2 billion out of $123 billion, it's hardly a dent.

In 2012, CVS Caremark reported $123.1 billion in revenues, a 15% jump from $107.1 billion the previous year.

 

[PemLam]

I think that from a business perspective you have to look at more than money. It's the most short-sighted, least-intelligent and worst way to run your business.

If you do everything solely to maximize your profits, you'll end up not only reviled but finding that people openly and actively rejecting your business. And eventually, have no business.

That CVS is taking a very bold stand is laudable. $2 billion sounds like a lot but when it's $2 billion out of $123 billion, it's hardly a dent.

We'll have to agree to disagree on this point. There are countless businesses that started up and failed because they didn't consider the financial aspect. You absolutely MUST have a healthy respect and knowledge of the financial aspect of your business if you hope to survive.

I agree that doing everything solely for profits isn't the smartest approach. But to me, the businesses that are doomed to failure are the ones that don't consider the financial side as one of the most important.

I'm sure CVS considered this impact...my point is more towards the smaller businesses. (Though it certainly can apply to larger ones as well).

 

[NickNitro]

CVS though is a well established company with hundreds of millions of dollars in the pharmaceutical and product industry.

Like what's been said before, I believe their financial advisers have assessed the situation, have weighed the pros and cons of dropping Tobacco from their sales, and have found 2 things.

1. The movement away from Tobacco falls right in line with their business model, and image they are trying to set for themselves

2. The financial loss will not destroy the company.

 

[HauntedKnight]

I'm talking about their move to care for their customers health rather than feed money into an evil corporation. Do you think this is a smart idea? Could this be a revolution of major corporations backing away from the Tobacco industry?

They may lose revenue but I for one am happy to see a company take a stand against something that clearly has horrible health risks. Goes to show some companies don't all bow down to the all mighty $

Would companies like Walgreen's or other's follow?

I see. Yes, it's a great idea. Really does say a lot about their policies. Hopefully it doesn't indeed put too much of a strain on business.

It might help others, but again they might just see it as a profit gain unless PR seems like it could be benefited. Really could go either way!

 

[NickNitro]

This seems like the first major corporation to take a stand against Tobacco sales.

 

[DDS]

Part of me thinks consenting adults should be able to buy what they want, granted they know the facts about potentially harmful substances, and consume them in an environment that makes it so it'll only harm them. The other part of me thinks cigarettes specifically are just disgusting, and would welcome their demise.

 

[Destructus86]

Sounds like a great decision to me. I'm all for it. I welcome the slow, eventual demise of such a disgusting and unhealthy habit.

 

[NickNitro]

Imagine a world where tobacco is taboo and cannabis is legal? My lord......

 

[Destructus86]

Imagine a world where tobacco is taboo and cannabis is legal? My lord......

You know what...I would support that 100%!

 

[NickNitro]

One has little health risks and is illegal, the other causes cancer...and is legal.

Dat logic

 

[Teelie]

We'll have to agree to disagree on this point. There are countless businesses that started up and failed because they didn't consider the financial aspect. You absolutely MUST have a healthy respect and knowledge of the financial aspect of your business if you hope to survive.

I agree that doing everything solely for profits isn't the smartest approach. But to me, the businesses that are doomed to failure are the ones that don't consider the financial side as one of the most important.

I'm sure CVS considered this impact...my point is more towards the smaller businesses. (Though it certainly can apply to larger ones as well).

Not the same thing by any means. I never said to ignore finances. I said you can't place them above all else like you were saying. And this is hardly some start up or struggling business. That CVS is going to lose $2 billion is like .016% of their profits. That's a tiny amount compared to the goodwill and positive publicity they'll get. And the health benefit to the country as the trend grows when more businesses begin to adopt the same practice.

To ignore the moral, ethical, legal and publicity of your company's image can do more harm than making a small sacrifice to the profits.

Short term thinking like that is what dooms so many companies. I think if anything CVS is going to end up doing better in the long term.

 

[Pink Ranger]

One has little health risks and is illegal, the other causes cancer...and is legal.

Dat logic

It's a self-fulfilling prophecy, isn't it? One drug causes cancer, the other drug is used by cancer patients to to relieve their suffering.

Soon enough, you'll have the same big corporations making both smokes and joints. From a business perspective, that's a licence to print money.

 

[charl_huntress]

Yet you wonder why it's the pharm companies that work hard to keep marijuana a schedule one drug.

 

[Pink Ranger]

Yet you wonder why it's the pharm companies that work hard to keep marijuana a schedule one drug.

Mainly because most of us here can grow weed in a consumable form in our own homes, whereas most of us can't make our own anti-depressants or painkillers.

Still, the pharma companies should think longer-term; yes, people would grow and roll their own at home at first, but then will realize it's easier to buy it. Just like we can bake our own cookies, but after a while, a lot of people say "**** it" and buy a case of Oreos.

 

[charl_huntress]

Bingo.

I'm waiting for the day when the tobacco lobby decides to really put its money behind the marijuana initiative. That will be the day lobbyist actually fight on the hill a la the Hunger Games.