CVS ending cigarette sales

[supton]

http://www.cnn.com/2014/02/05/health/cvs-cigarettes/

Quote:
"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," Larry J. Merlo, president and CEO of CVS Caremark, said in a statement. "Put simply, the sale of tobacco products is inconsistent with our purpose."


Quote:
Stopping cigarette sales comes at a price. CVS Caremark estimates it will take an annual loss of $2 billion from tobacco shoppers -- $1.5 billion in tobacco sales and the rest from other products tobacco shoppers purchase while in the store.



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


So less than 2% drop in revenue. I say good for them.

 

[bdcardinal]

Nobile decision yes, however they truly don't care about the health of their customers if they continue to sell alcohol, Rockstar/Monster, and 5 Hour Energy.

 

[Quattro Pete]

Someone mentioned that they are just making room for medical marijuana displays.

 

[DBMaster]

^Not that I am a fan of the product, but what do you find objectionable about 5-Hour Energy?

 

[Quattro Pete]

Originally Posted By: DBMaster
^Not that I am a fan of the product, but what do you find objectionable about 5-Hour Energy?

It doesn't exactly help people on their path to better health...

http://www.forbes.com/sites/davidkroll/2...r-energy-drink/

 

[supton]

Originally Posted By: bdcardinal
Nobile decision yes, however they truly don't care about the health of their customers if they continue to sell alcohol, Rockstar/Monster, and 5 Hour Energy.


I dunno, those take in moderation probably won't hurt the customers. I'm not aware of a moderate intake level for tobacco products, or a level that doesn't cause harm.

 

[bdcardinal]

Originally Posted By: DBMaster
^Not that I am a fan of the product, but what do you find objectionable about 5-Hour Energy?


FWIW I used to drink it fairly often, but I know people that have like 3 or 4 a day on a slow day.

 

[surfstar]

Seems like stockholders could file a suit against CVS - sorry, but a CEOs responsibility is to maximize profits when it is a public company.

Plus its win, win - people buy cigs, have health problems, get prescriptions filled at CVS. Cutting off their ear...

 

[Trav]

People will buy them somewhere else regardless. A 2% hit is a lot just to be stylish, i wonder how the shareholders are going to react.

 

[supton]

Shareholders might not like it, but, other than oust whoever made the decision (any chance they want out?) I'm thinking it's a done deal. What would be the backlash if they changed their mind?

Could be part of a larger plan. "Look, we're interested in your health! Shop for you meds here, instead of a pharmacy that is all too happy to sell you cancer sticks in order to make you come back."

 

[NewC6]

5 hour energy debate has been on and off again. Most folks, including myself, have no issue with the caffeing and B vitamins included. Like ANY product, it should be taken when needed and not abused, IE in moderation. Folks can take on alcohol and tobacco all they want but 5 Hour energy is very low on the danger scale.

 

[Quattro Pete]

Originally Posted By: supton
So less than 2% drop in revenue. I say good for them.

That's assuming they won't replace the cigarettes with something else. I'm sure they'll find other stuff to sell in place of cigs to make up the loss.

 

[DBMaster]

Originally Posted By: surfstar
... a CEOs responsibility is to maximize profits when it is a public company...


True. If you are an advocate of TRUE capitalism, this is a very good observation. It will be interesting to see how this plays out in market share. Around here Walgreen's and CVS are ubiquitous. I have no clue about why people pick one over the other.

 

[Quattro Pete]

Originally Posted By: surfstar
a CEOs responsibility is to maximize profits when it is a public company.

And maybe he will... in the long run.

 

[eljefino]

Shareholders in Amazon don't seem to mind that they're "building goodwill" instead of making a profit.

CVS could always rent kiosk space to a tobacco sales guy, much like walmart rents out the eye exam room.

 

[Chris142]

Our bodies already have cancer cells that lay dormant.Those monster drinks are very acidic. Cancer cant live is an alkaline body and those monsters invite cancer with there acidity.

 

[CHARLIEBRONSON21]

I always wondered why a "health" store sold tobacco and alcohol.

 

[SwampSurvivor]

Today, everything is about PR. If you can make your company look good, people will go to your company.

Do you know how many times I saw this "shared" on Facebook today? No doubt, there were people that will now be shopping at CVS before - ONLY because they saw the post from CVS where CVS no longer sells cigarettes.

If you can make your company look "good" in some way, it's almost a guarantee.

If they really cared about people's health, they would stop selling:
- Cigarettes
- Energy Drinks
- Half of the prescription medications that have 10000 side effects and don't actually make people better.

 

[NateDN10]

Originally Posted By: Miller88
Today, everything is about PR. If you can make your company look good, people will go to your company.

Do you know how many times I saw this "shared" on Facebook today? No doubt, there were people that will now be shopping at CVS before - ONLY because they saw the post from CVS where CVS no longer sells cigarettes.

If you can make your company look "good" in some way, it's almost a guarantee.

If they really cared about people's health, they would stop selling:
- Cigarettes
- Energy Drinks
- Half of the prescription medications that have 10000 side effects and don't actually make people better.

+1
Maybe they lose 2% in revenue, but IMO they're more than making up for it in free advertising and goodwill.

 

[simple_gifts]

Originally Posted By: surfstar
Seems like stockholders could file a suit against CVS - sorry, but a CEOs responsibility is to maximize profits when it is a public company.


Who said that is the stock holder's priority?

Companies have stated corporate mission statements; if current sales violates that mission statement it is the CEOs responsibility to align the store's product line with that mission; if share holders didn't read that prior to investing, sucks for them.

http://info.cvscaremark.com/about-us/our-purpose-building-bridge-better-health

Quote:

Purpose:Helping people on the path to better health


Surely you are not suggesting every company pursue profits with no regards to the consequences of their business activity?