CVS to Stop Selling Tobacco Products

[bjl584]

http://www.cnbc.com/id/101390122

In a move hailed by President Barack Obama, CVS Caremark said Wednesday it is getting out of the business of selling cigarettes, a decision that will cost its retail division $2 billion in annual sales.

"We made this decision as a business decision because we are positioning ourselves as a health-care company," said Helena Foulkes, CVS/pharmacy president.

[disneysteve]

This is fantastic. I hope other retailers follow their lead. The fact that with everything we know about the dangers of smoking, it remains legal and readily available is a disgrace. Of course, the problem is the billions of dollars it generates. Most mini market type stores are essentially tobacco shops. Take away cigarettes and they'd be out of business.

[creditcardfree]

I think this is fantastic! It is definitely contradictory to be selling these products when they are primarily a health care business.

[disneysteve]

I see that they are saying the change will take effect by October 1. I do wonder why they need almost 8 months to make the change. How about not ordering any more cigarettes starting today and when your stock is gone, you're done?

[bjl584]

I see that they are saying the change will take effect by October 1. I do wonder why they need almost 8 months to make the change. How about not ordering any more cigarettes starting today and when your stock is gone, you're done?

Probably because when they do their purchasing they do it with long term contracts and blanket orders. The order will be structured something like, "CVS agrees to purchase 10,000 units of X over the next 6 months whereby CVS will take delivery of 1666 units per month." Also, the cigarette manufacturers have probably paid for space of CVS's shelves. This was also done under a long term contract. CVS needs to wait until they fulfill the contractual obligations that they have with their suppliers before they can pull the items off the shelf.

[disneysteve]

Probably because when they do their purchasing they do it with long term contracts and blanket orders. The order will be structured something like, "CVS agrees to purchase 10,000 units of X over the next 6 months whereby CVS will take delivery of 1666 units per month." Also, the cigarette manufacturers have probably paid for space of CVS's shelves. This was also done under a long term contract. CVS needs to wait until they fulfill the contractual obligations that they have with their suppliers before they can pull the items off the shelf.

That makes sense. I wasn't thinking "corporately".

[disneysteve]

Kind of a sad statement from WalMart on this issue.

“There are still a tremendous number of our customers who smoke,” Walmart CEO Lee Scott has said. “We’ve got a market to serve, and second we’ve got shareholders to think about."

So they freely admit that they are more concerned with their bottom line than with doing the right thing. They care more about money than about the health and well being of their customers.

[Joan.of.the.Arch]

Well, I rewarded CVS with some of my business today.

I have two Walgreens within easy walking distance. I regularly make purchases there. Today, in response to the no-cigs news I instead drove 4.5 miles to CVS to make my purchase.

Later I remembered there is another CVS in a direction I more often travel, so I can combine CVS drugstore visits with other errands.

Can't say I'll give up the convenience of Walgreens all together, but I will ain for CVS more often, for sure.

[bjl584]

Kind of a sad statement from WalMart on this issue.



So they freely admit that they are more concerned with their bottom line than with doing the right thing. They care more about money than about the health and well being of their customers.

We could probably argue that issue until the end of time on these forums. Walmart sells lots of things that people disagree with. Guns and ammunition is a big one. What about pretty much everything on their shelves full of fat? Full of caffeine? Full of high fructose corn syrup? Everything made in Chinese sweat shops? If Walmart got rid of everything that people disagreed with or didn't like the shelves would be empty.

[bjacksss]

I think this is a great move for the company both morally and financially. Cigarettes is the cause of numerous deaths in the US and they still remain legal. Financially speaking, it may be a tough loss now but I see the use of cigarettes in the future declining due to the number deaths, disease, and the legalization of marijuana.