CVS to stop selling tobacco products

[redheadbaker]

There's a "do you agree with CVS' decision" pool at the link, which, when I looked at 8 am, was nearly 1,200 voting yes and about 65 voting no.

www.npr.org/blogs/thetwo-way/2014/02/05/271906167/cvs-to-stop-selling-tobacco-products?utm_source=news&utm_medium=facebook&utm_campaign=20140205

Saying it is "the right thing for us to do for our customers and our company to help people on their path to better health," the CEO of CVS Caremark announced Wednesday that the company's 7,600 pharmacies will stop selling cigarettes and tobacco products by Oct. 1.

Larry Merlo also said CVS will try to help those who want to quit smoking with a "robust national smoking cessation program" at its locations.

CVS says the decision will trim about $2 billion in annual revenue — out of what Forbesreports is $125 billion in sales each year. But as Forbes adds, Merlo believes that "continuing to sell cigarettes, which the Surgeon General blames for 480,000 deaths every year from heart disease, lung cancer, and stroke, was anathema to CVS' long-term plan to become a central player in the U.S. health care system."

The news has already won praise from President Obama. Shortly after the announcement from CVS (which had been expected), the White House released a statement from the president which says, in part:

"As one of the largest retailers and pharmacies in America, CVS Caremark sets a powerful example, and 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."

CVS operates the nation's second-largest chain of drugstores. Walgreens has 8,200 pharmacies. Twitter is already buzzing with comments about whether that chain will also stop selling cigarettes. Reuters says that shortly after the CVS announcement Walgreens issued a statement saying "we will continue to evaluate the choice of products our customers want."

[ringstrue]

This is so awesome. Though I wonder if sales were going down steadily for awhile anyway? If Walgreens did it too id be in heaven.

[polarbearfans]

I think it is great. It gives me a more positive view of the company that they would make that choice.

[trigal]

Awesome! It's nice to see a big company take a stand. Even if the sales were down, it's still a loss for them to get rid of the cigarettes, so I am very pleased.

[karinothing]

Nice! Now we need to get rite aid and walgreens and then all groceries stores in on this lol.

[pedanticwench]

I think it's stupid. But I get why they're doing it.

[heyjude]

What about soda and junk food?

[earlgreyhot]

Feb 5, 2014 10:23:14 GMT -5 heyjude said:

What about soda and junk food?

Baby steps.

[meshaliuknits]

I like it in that my local CVS has exactly two people working and people buying cigarettes make everything take longer since they are kept locked up away from the registers. Basically, I'm pro because I'm selfish and don't like waiting longer than I already am.

[mnvegas]

I think it is a good idea. I've shopped at CVS quite a bit, especially when I lived in MA/RI. I really don't ever remember seeing too many people buying cigarettes there compared to some other places.

[ESF]

CVS has been using those rewards cards for years - longer than most places. I am sure they figured out what other items cigarette purchasers buy when buying cigarettes, figured they were crappy customers, and decided they could o without them. I am sure the costs associated with selling it are probably high - tax compliance, keeping them locked up, making sure someone over 18 is available to sell it, etc., and if the buyers aren't buying products with higher profit margins, then the revenues might not really be so great.

[Deleted]

I find it interesting that the White House released that statement. Has Obama quit smoking and I missed it?

[Deleted]

Feb 5, 2014 10:46:02 GMT -5 Lucy Honeychurch said:

Feb 5, 2014 10:44:02 GMT -5 @autiger said:

I find it interesting that the White House released that statement. Has Obama quit smoking and I missed it?

Yes, he quit.

Well, good for him then.  I know how hard it is to quit.

And as for CVS, I think they are well within their rights to not sell tobacco products.  It's their choice to sell or not sell products.

[Deleted]

That wasn't really in response to anyone in particular - it was in response to the article. That was my opinion. I thought that's what we are doing here - sharing opinions on the article.

[ESF]

I just read elsewhere that CVS is investing heavily in the Minute Clinics and trying to build its brand in the health care industry. the move will help them build relationships with hospitals, insurance companies, other health care organizations. So I'm guessing the revenue loss is a pittance compared to what it thinks it can earn prescribing penicillin for routine cases of strep.

[lasagnasshole]

It's actually not even really an opinion that CVS is fully within its rights to stop selling tobacco products. It's sort of a fact.

(And this is where CEP eats its young and drives off newbs. I KNOW. This kinder, gentler thing is HARD, y'all.)

[msmerymac]

Feb 5, 2014 11:05:30 GMT -5 ESF said:

I just read elsewhere that CVS is investing heavily in the Minute Clinics and trying to build its brand in the health care industry. the move will help them build relationships with hospitals, insurance companies, other health care organizations. So I'm guessing the revenue loss is a pittance compared to what it thinks it can earn prescribing penicillin for routine cases of strep.

They are also heavily promoting their own mail-order prescription system. At least, my husband almost got a job with them working on that system, which is poised to be big - they hope.

[Deleted]

Then I stated fact. It doesn't really matter - it's a posting on an article, not directed at or to anyone. I never said anyone made the allegation that they are not within their rights to sell products, whatever they are. I simply stated that they can do what they want. I stand behind that fact that they can do what they want. That was my point.

[downtoearth]

Feb 5, 2014 10:44:02 GMT -5 @autiger said:

I find it interesting that the White House released that statement. Has Obama quit smoking and I missed it?

Plus, even if he hadn't quit smoking, most people know that cigarettes are bad for them and so they know something like this could be a good move, as far as health is concerned, even if they can't or don't want to quit.  So even if the president still smoked, I wouldn't bat an eye at the White House applauding CVS for doing this.

[downtoearth]

Personally, I wonder if my mom, who is a closet/secret smoker, will start using Walgreens for her prescriptions.

[Deleted]

I dont' really care about this either way. At the end of the day, a store can sell whatever it wants.

I do think given that we know smoking is one of the most terrible things for people, a drugstore probably shouldn't be selling, but again, whatever.

You can't buy cigarettes in drugstores in Canada so I've never known any different.

[doctordonna]

Does this include smoking cessesion products? I can't tell from the article.

[Deleted]

Feb 5, 2014 10:23:14 GMT -5 heyjude said:

What about soda and junk food?

have you been reading the comment sections of my local paper 

[tef]

Feb 5, 2014 11:05:30 GMT -5 ESF said:

I just read elsewhere that CVS is investing heavily in the Minute Clinics and trying to build its brand in the health care industry. the move will help them build relationships with hospitals, insurance companies, other health care organizations. So I'm guessing the revenue loss is a pittance compared to what it thinks it can earn prescribing penicillin for routine cases of strep.

Per my FB feed (so, obviously, well sourced), it could cost them 2 billion in sales.  I have no idea over how long, but good for them. 

And, yes, their Minute Clinics are really expanding to include Weight Loss aid,e tc.

[pescalita]

Feb 5, 2014 11:52:30 GMT -5 tef said:

Feb 5, 2014 11:05:30 GMT -5 ESF said:

I just read elsewhere that CVS is investing heavily in the Minute Clinics and trying to build its brand in the health care industry. the move will help them build relationships with hospitals, insurance companies, other health care organizations. So I'm guessing the revenue loss is a pittance compared to what it thinks it can earn prescribing penicillin for routine cases of strep.

Per my FB feed (so, obviously, well sourced), it could cost them 2 billion in sales.  I have no idea over how long, but good for them. 

And, yes, their Minute Clinics are really expanding to include Weight Loss aid,e tc.

I keep hearing this $2B number, but nothing about the COGS. That's not $2B in profit. Like ESF says, that could be completely eaten up in taxes and lock ups, not to mention the revenue potential elsewhere.

I'm happy to see it, and I think it could end up a profitable decision. They certainly are getting the press about it today.

[ringstrue]

Well Obama has quit smoking until he wants to campaign for something again .

The CVS Caremark thing is sort of a scary big pharm/ ins. company relationship, so I'm not gonna go full on rah rah CVS just over this. My last employers ins coverage had us ONLY be able to use CVS and some sort of weird 90day supply rule for on going prescriptions.

And I agree that with Big Data availability they could see that cigarette customers were not very profitable compared to other consumers.

And buying soda at CVS is a dumb move anyway cuz everyone knows it's more expensive there than pretty much everywhere else.

[Velar Fricative]

I'm only surprised because every CVS I go into has almost all self-checkout lanes. You can't find a cashier for shit, so I assumed they were penny-pinching and wonder if they could afford the $2 billion loss in revenue (though the heavy investment into Minute Clinic make sense).