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CVS To Stop Selling Tobacco Products At Its 7600 Stores
Because Americans obviously can not be trusted with making the right, or any, decisions, without parental supervision, the CVS Caremark pharmacy chain has decided to do it for them. "CVS Caremark 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."
Well, unless all other major retail chains decide to pull the Bloomberg stunt and follow suit, that only means more money for CVS' competitors. And now we begin the countdown of how long before CVS also pulls all the other "evil", cheap high-calorie, zero nutrient junk foods that dominate its shelves and whose consumption is responsible for the bulk of cardiovascular diseases and premature deaths in the US.
From the press release:
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."
Merlo continued, "As the delivery of health care evolves with an emphasis on better health outcomes, reducing chronic disease and controlling costs, CVS Caremark is playing an expanded role in providing care through our pharmacists and nurse practitioners. The significant action we're taking today by removing tobacco products from our retail shelves further distinguishes us in how we are serving our patients, clients and health care providers and better positions us for continued growth in the evolving health care marketplace."
Smoking is the leading cause of premature disease and death in the United States with more than 480,000 deaths annually. While the prevalence of cigarette smoking has decreased from approximately 42 percent of adults in 1965 to 18 percent today, the rate of reduction in smoking prevalence has stalled in the past decade. More interventions, such as reducing the availability of cigarettes, are needed.
"CVS Caremark is continually looking for ways to promote health and reduce the burden of disease," said CVS Caremark Chief Medical Officer Troyen A. Brennan, M.D., M.P.H. "Stopping the sale of cigarettes and tobacco will make a significant difference in reducing the chronic illnesses associated with tobacco use."
In a Journal of the American Medical Association (JAMA) Viewpoint published online this morning, Brennan and co-author Steven A. Schroeder, Director, Smoking Cessation Leadership Center, University of California, San Francisco, wrote, "The paradox of cigarette sales in pharmacies has become even more relevant recently, in large part because of changes in the pharmacy industryMost pharmacy chains are retooling themselves as an integral part of the health care system. They are offering more counseling by pharmacists, an array of wellness products and outreach to clinicians and health care centers.Perhaps more important, pharmacies are moving into the treatment arena, with the advent of retail health clinics. These retail clinics, originally designed to address common acute infections, are gearing up to work with primary care clinicians to assist in treating hypertension, hyperlipidemia and diabetes all conditions exacerbated by smoking."
CVS Caremark's decision to stop selling tobacco products is consistent with the positions taken by the American Medical Association, American Heart Association, American Cancer Society, American Lung Association and American Pharmacists Association that have all publicly opposed tobacco sales in retail outlets with pharmacies.
"As a leader of the health care community focused on improving health outcomes, we are pledging to help millions of Americans quit smoking," said Merlo. "In addition to removing cigarettes and tobacco products for sale, we will undertake a robust national smoking cessation program."
The program, to be launched this Spring, is expected to include information and treatment on smoking cessation at CVS/pharmacy and MinuteClinic along with online resources. The program will be available broadly across all CVS/pharmacy and MinuteClinic locations and will offer additional comprehensive programs for CVS Caremark pharmacy benefit management plan members to help them to quit smoking. Approximately seven in ten smokers say they want to quit and about half attempt to quit each year.
"Every day, all across the country, customers and patients place their trust in our 26,000 pharmacists and nurse practitioners to serve their health care needs," commented Helena B. Foulkes, President, CVS/pharmacy. "Removing tobacco products from our stores is an important step in helping Americans to quit smoking and get healthy."
The decision to exit the tobacco category does not affect the company's 2014 segment operating profit guidance, 2014 EPS guidance, or the company's five-year financial projections provided at its December 18th Analyst Day.The company estimates that it will lose approximately $2 billion in revenues on an annual basis from the tobacco shopper, equating to approximately 17 cents per share. Given the anticipated timing for implementation of this change, the impact to 2014 earnings per share is expected to be in the range of 6 to 9 cents per share. The company has identified incremental opportunities that are expected to offset the profitability impact. This decision more closely aligns the company with its patients, clients and health care providers to improve health outcomes while controlling costs and positions the company for continued growth.
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As long as the government isn't forcing them to do this, it's great. It's their business; they can run it as they see fit.
Meybe there is more to this story than the CEO's explanation.
CVS is the constant target of unions, who use the government to coerce. For example, in Philadelphia, CVS was attacked by local government for alleged out-of-sell-by-date products on the shelves. Now, Philadelphia has a 99 problems but this ain't one. But Philadelphia local government has corruption and union involvemnt in that corruption, so CVS, a non-union shop, becomes a target.
I'd bet that this cigarette move was motivated by some coercive phone call that suggested, for example, that is CVS ever wants to make an acquisition, or expand to some new geography, it had better take this cigarette move or their will be Congressional hearings in perpetuity.
Such is my distrust of this government.
They probably did it to receive some sort of favored pharmacy status with the Obamacare snake coil. They wouldn't ditch a couple billion in revenue becaue they care abou you, they're doing it for increases profits through Obamacare.
They still carry paxil and zoloft, fluoride toothpaste and aspartame snacks, so their reputation of looking after your health interests remains stable.
A "couple billion" from a low-margin product that their customers generally don't even buy?
Hahahaha.
From the actual press release:
The decision to exit the tobacco category does not affect the company's 2014 segment operating profit guidance, 2014 EPS guidance, or the company's five-year financial projections provided at its December 18th Analyst Day.The company estimates that it will lose approximately $2 billion in revenues on an annual basis from the tobacco shopper, equating to approximately 17 cents per share
2B is their words, not mine.
I thought about writing something snarky but I don;t even know where to start...
\facepalm
No worries....we'll send an Obamacare coach over to tell you what to think.....right after the next one gets cleared for parole.
Let's see how the moron brigade that the ZH board has become over the years would jump on the opportunity to showcase their splendid doble-digit IQ to trash a pharmacy chain that decided to stop selling cigarets.
They appear to be out in full force...
Doesn't it make sense that a pharmacy would not sell cigarettes? This is not a nanny state thing this is a non hipocricy thing.
It actually does, but not to a ZH reader. To a ZH reader it is yet another sign of a Goldman-sponsored conspiracy to turn America into a socialist Nazi state with devalued fiat currency and 350% income tax. This Orwellian state where everyone has health coverage, which is a bad thing, of course would be rulled by an international bankers cabal with their top echelons organized under the umbrella of Federal Reserve.
That's right America you'll do what your told...
Is Ron Johnson running CVS now??? It's a stupid business decision. They'll lose cigarette sales and other stuff that smokers purchased at their stores. It's almost as bad as when JCP stopped having sales and giving out coupons. I wouldn't buy their stock anytime soon.
CVS is ground zero for corporate fascism. Worse than Wall-mart IMO. We know what the viagra is for...
http://www.nytimes.com/2013/05/07/business/pfizer-begins-selling-viagra-...
God forbid these people get cigarettes while they pick up their oxycodone, amphetamine, xanax, hydrocodone
No cigs, but my underage daughter can still get the Plan B pill without issue right?
Maybe you should have a talk with your daughter if that is your concern...
Or maybe you really want to be grandparent?
I'm sure she'll just goto walgreens for both now... two birds one stone...
Plus why do I need to talk with her, its been ruled she can make her choice without parental guidence. I might say keep it... U get the father's child support, then Housing assitance, EBTs and other forms of welfare from daddy government.
Stupid is as stupid does....
I see some of you guys do not understand retail. At least retail in 2014.
Tobacco is just too much trouble to stock -- there is a high risk of pilerage do to cost and potential resale, no "pull up man" to merchandise it for you, customers who want it are sketchy and usually pay in cash (another hassle), your English as a second-language front-end staff has to ask for ID and otherwise interact with customers in ways that do not add revenue, etc. Stores with the foot-print and staffing of a CVS or a Walgreens just do not need it. They want to have ONE front end person to ring up high-margin junk while the back-up prints money by billing various insurers and/or gov't agencies.
That CVS is lathering the move up in "health" agit-prop should tell you it has nothing to do with health.
"Sports guy chest bump"!!
Around 21% of adults smoke in the USA. That's a lot of potential customers to lose. I bet the CEO gets fired within 18 months.
No, because his labor costs should hit the floor. He'll be able to rely on vendors and temp agencies for his stocking and merchandising of high-margin non-script junk while running his front-end with a single FTE 80% of the time. Meanwhile, his auto refill scam prints money at the back of the store. I hate CVS and I hate the feds, but this move is the future of retail.
Went into a Kroger for the first time in forever the other day to confirm some trends. It was clear the entire store was vendor/temp merchandised to the greatest extent possible. Produce you can't do that way, so that is why Kroger produce has always sucked. The little "natrual foods" ghetto another out-lier -- stuff is very high margin and is functionally a required "cache carry" in some zips -- but typically no vendors to handle it, so you jam it ALL TOGETHER without rhyme or reason dry/frozen/cold in a tiny area so ONE of your FTEs (two or three actual people) can service it in the minimum time possible.
Staffing is concentrated up front at check out, near high-margin, high-risk things like cigs (and baby formula in some markets) to help keep those items from walking out and to give customers the illusion of having a lot of friendly Kroger help on-hand. But in reality Obama's part-time, Food Stamp America is all around them.
news just yesterday reported that sugar from soft drinks and candy DOUBLE your risk of heart disease. have you seen the size of the candy aisle in these stores?
You see the size of the HFCS lobby in DC?
Yeah but they'll be stocked with maryj
Did ZH not have their coffee this morning? How are they criticzing a business decision made independantly and not forced on them by government? Isn't that their entire philosophy. I hardly think stopping the sale of a low margin product like cigarettes is going to destroy CVS. Not everything is an Obamacare/Bloombergian consipiracy.
Get a grip ZH, you're starting to lose it!
This will last for all of 1 quarter.
"Because Americans obviously can not be trusted with making the right, or any, decisions, without parental supervision, the CVS Caremark pharmacy chain has decided to do it for them."
BS! This is a business making a decision about what it does and does not want to sell. Anyone with sufficiently strong disagreement can shop elsewhere (I already do, but only because they won't stop asking for a CVS card I refuse to get).
People here at ZH talk about freedom, but seem to think that businesses who don't choose to sell a particular unhealthy product are restricting their own personal freedom. Whiners.
Selling cigarettes in a pharmacy? Are you serious?
It's gotta be April 1st.
Breaking: CVS has hired Don Draper to lead their 2014 marketing campaign.
Troy, if your company truely believed that, you would stop selling junk food too. Bullshit much?
ZH seems to be confused about it's free market ideology these days
You think this fascist crony gangster inverted imperialism is free market capitalism?
You think this specific decision of CVS's is a facsit crony gangster influenced decision?
Absolutely. CVS: Sleazy mongrels licking the feet of globalist big pharma. Get your synthetic heroin and refined heroin extracts there. All by the unconstitutional rules of their greater criminal monopoly. Dispensers of Bayer products. Bayer the knowing providers of millions of AIDS tainted vaccines - to children. WTF is Bayer doing with live AIDS cultures in their vaccine production facility? No cigs, no weed, np shilling poison.
But if the computer link to the State is down, they won't sell you any medicine at all, even if you're dying. It's for the children.
Wow, it sounds you like you need to march yourself right down to CVS and get your meds refilled.
What a feeble rebuttal.
CVS = Chinese Versions of Stuff we made before Clinton double NAFTA-ed us. Don't let Barry TPP the rest of the economy.
What type of health products company sells cigarettes and moonshine?
Has .gov told CVS to stop selling cigarettes in order to be an approved pharmacy provider for Medicare? Smart CEO''s don't generally discontinue a product that brings $2B to the bottom line.
Uhhhhh, Tyler, you're always railing against government regulation because businesses should have the freedom to make their own decision and sell whatever they want to sell. So, now a business has decided what it's going to sell and what it's not going to sell and you're pissed about that too? I'm having trouble understanding your objections here. I suppose an objection as a stockholder could be warranted (based on the possibility of lower profits), but, it sounds like your objection is morally based on CVS trying to play national parent. Who cares? Last I checked, there were no shortage of places to buy cigarettes. CVS is certainly obligated to defend what it decides not to sell to its stockholders, but, they can and should have the freedom to sell whatever they want.
The real underlying story here is that selling cigarettes is essentially acting as a poorly-compensated revenuer for governments. More than a FU to smokers this is a FU to tax collectors, the only people left who profit from the trade.
I think what the article is suggesting is that its another case of legislating morality, when no one, governments or corporations, actually has the right nor the moral high ground to decide what is actually in the peoples best interest. Kind of like drugs, how is putting a 15 year old in jail and limiting his future to Wal-Mart and Mcdonalds for smoking a joint, in his best interest? How is putting the drug dealer in jail when because he was put in jail for smoking a joint which made him unable to get a job which made dealing the only reason he has not starved to death yet, in his best interest? That whole cycle would not have happened if the government wasn't so over zealous in their "protection" of us and finally got the message to just fuck off and quit meddling in things they are too goddamn stupid to understand.
Biff likes it this way, McFly. Whadya gonna do about it?