Health & Medicine
CVS Will Stop Selling Tobacco in 2014
Thomas Carannante
First Posted: Feb 05, 2014 11:25 AM EST
CVS Caremark Corp. has announced this morning that their 7,600 stores nationwidewide will no longer sell cigarettes or any other tobacco products. The decision will go into effect in October. They are the first drugstore chain in the United States to make this decision.
As the No. 2 drugstore chain in the United States, healthcare experts believe that CVS' decision will pressure other chains and stores to do the same, especially if others want to be seen as a "healthcare provider."
However, the decision is not the first of its kind. Boston and San Francisco have already banned the sale of tobacco products in pharmacies. In addition, retailers such as Target and Wegmans Food Markets did the same in 1996 and 2008.
President Obama had nothing but positive things to say about the decision by CVS.
"Today's decision will help advance my Administration's efforts to reduce tobacco-related deaths, cancer and heart disease, as well as bring down health care costs--ultimately saving lives and protecting untold numbers of families from pain and heartbreak for years to come," the president said in a statement in this FOX News article.
Although it may seem CVS will take a huge hit in profits, the projections don't see that happening. The drugstore chain has projected a loss of $2 billion in annual sales while they expect $132.9 billion in revenue this year. Thomson Reuters has reported that CVS is also expected to make a profit of $4.47 per share. CVS has most likely been weighing this decision for a while, and when they observed the 31.3 percent drop in cigarette sales over the past decade they realized ceasing tobacco sales would have minimal effect.
The decision is also probably a result of CVS' corporate activity. In December they signed a 10-year agreement with Cardinal Health Inc., a pharmaceutical distributor, which established the largest generic drug sourcing operation in the country. They also announced their plan to substitute their losses in tobacco sales with smoking cessation programs--a strategy they believe will also help them land more corporate contracts.
To read more about CVS and their decision to no longer sell tobacco products, visit this FOX News article.
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First Posted: Feb 05, 2014 11:25 AM EST
CVS Caremark Corp. has announced this morning that their 7,600 stores nationwidewide will no longer sell cigarettes or any other tobacco products. The decision will go into effect in October. They are the first drugstore chain in the United States to make this decision.
As the No. 2 drugstore chain in the United States, healthcare experts believe that CVS' decision will pressure other chains and stores to do the same, especially if others want to be seen as a "healthcare provider."
However, the decision is not the first of its kind. Boston and San Francisco have already banned the sale of tobacco products in pharmacies. In addition, retailers such as Target and Wegmans Food Markets did the same in 1996 and 2008.
President Obama had nothing but positive things to say about the decision by CVS.
"Today's decision will help advance my Administration's efforts to reduce tobacco-related deaths, cancer and heart disease, as well as bring down health care costs--ultimately saving lives and protecting untold numbers of families from pain and heartbreak for years to come," the president said in a statement in this FOX News article.
Although it may seem CVS will take a huge hit in profits, the projections don't see that happening. The drugstore chain has projected a loss of $2 billion in annual sales while they expect $132.9 billion in revenue this year. Thomson Reuters has reported that CVS is also expected to make a profit of $4.47 per share. CVS has most likely been weighing this decision for a while, and when they observed the 31.3 percent drop in cigarette sales over the past decade they realized ceasing tobacco sales would have minimal effect.
The decision is also probably a result of CVS' corporate activity. In December they signed a 10-year agreement with Cardinal Health Inc., a pharmaceutical distributor, which established the largest generic drug sourcing operation in the country. They also announced their plan to substitute their losses in tobacco sales with smoking cessation programs--a strategy they believe will also help them land more corporate contracts.
To read more about CVS and their decision to no longer sell tobacco products, visit this FOX News article.
See Now: NASA's Juno Spacecraft's Rendezvous With Jupiter's Mammoth Cyclone