Props to CVS; will end tobacco sales

[Andy9o8 0]

Looks like we should give credit where credit is due when a large, publicly-traded for-profit corporation puts ethical social responsibility on the front burner.

It's always bugged me that pharmacy chains that hold themselves out as "wellness centers" - replete with mini-clinics, etc. - stock dozens of brands of tobacco poison behind the cashier's counter. This is overdue, but I'll take it. Are their competitors listening?

http://www.latimes.com/nation/nationnow/la-na-nn-cvs-caremark-cigarettes-tobacco-20140205,0,6663810.story#axzz2sTSsLwEP

Quote

WASHINGTON — CVS Caremark, the nation’s second-largest drugstore chain, plans to stop selling cigarettes and other tobacco products at its more than 7,600 retail stores by Oct. 1, a landmark decision that would make it the first national pharmacy company to cease tobacco sales.

[normiss 620]

I predict success!
Just like the drug war!

[Andy9o8 0]

Pffft. A good thing is a good thing.

[Channman 2]

Marijuana, it's the future I'm told. That must be it...CVS is looking to get into the marijuana business.

[Boogers 0]

Sacrificing $2 billion in sales...

Hmm... Okay, what about removing wine and beer to fight alcoholism and drunk driving? How about candy and soda to fight obesity? Cosmetics tested by torturing animals? Paper products that kill trees? Do the right thing, CVS!

As long as they still sell Chia pets, I'm okay.

[Andy9o8 0]

Gotta start somewhere...uh..."Boogers".

[weekender 0]

im a cynic and see no reason to applaud them. in the past cigarettes had enough margin that large corporations like CVS, 7-11 and WAWA(shout out to the mid-atlantic) could price them below smaller stores and bodegas. This would get people in the stores to buy other items and refill their prescription. the decline of cigarette smoking in the US and huge increase in taxes has destroyed the margin. so they moved into other things like energy drinks and more groceries. i hear the sushi at the Duane Read on Wall Street is pretty good.

if they did this when it hurt the bottom line i would applaud. now its a gimmick because they can no longer benefit from the sale of cigarettes. this decision was about bottom line and has nothing to due with ethics.

"The point is, I'm weird, but I never felt weird."
John Frusciante

[jclalor 12]

weekender

im a cynic and see no reason to applaud them. in the past cigarettes had enough margin that large corporations like CVS, 7-11 and WAWA(shout out to the mid-atlantic) could price them below smaller stores and bodegas. This would get people in the stores to buy other items and refill their prescription. the decline of cigarette smoking in the US and huge increase in taxes has destroyed the margin. so they moved into other things like energy drinks and more groceries. i hear the sushi at the Duane Read on Wall Street is pretty good.

if they did this when it hurt the bottom line i would applaud. now its a gimmick because they can no longer benefit from the sale of cigarettes. this decision was about bottom line and has nothing to due with ethics.

.

I heard this morning that they do about 120 billion a year with 2 billion coming from tobacco.

[weekender 0]

jclalor

***im a cynic and see no reason to applaud them. in the past cigarettes had enough margin that large corporations like CVS, 7-11 and WAWA(shout out to the mid-atlantic) could price them below smaller stores and bodegas. This would get people in the stores to buy other items and refill their prescription. the decline of cigarette smoking in the US and huge increase in taxes has destroyed the margin. so they moved into other things like energy drinks and more groceries. i hear the sushi at the Duane Read on Wall Street is pretty good.

if they did this when it hurt the bottom line i would applaud. now its a gimmick because they can no longer benefit from the sale of cigarettes. this decision was about bottom line and has nothing to due with ethics.

.

I heard this morning that they do about 120 billion a year with 2 billion coming from tobacco.

i reject your reality and substitute my own.

i mentioned my opinion to my assistant and he pointed out what you shared with me. i suppose i have to admit my opinion seems to not be based on very sound logic. i hate when the facts do not align with my opinion. i will admit my possible error here. i made my assistant get my dry cleaning for pointing out my error at work though. that will learn him to question my brain.

edit to add: im being told thats about 6-9 cents a share this year and 17cents a share annually. thats not a rounding error. thus confirming my fallibility.

also, im kidding about my assistant. i thanked him for bringing me up to speed.

"The point is, I'm weird, but I never felt weird."
John Frusciante

[wolfriverjoe 1,340]

weekender

******im a cynic and see no reason to applaud them. in the past cigarettes had enough margin that large corporations like CVS, 7-11 and WAWA(shout out to the mid-atlantic) could price them below smaller stores and bodegas. This would get people in the stores to buy other items and refill their prescription. the decline of cigarette smoking in the US and huge increase in taxes has destroyed the margin. so they moved into other things like energy drinks and more groceries. i hear the sushi at the Duane Read on Wall Street is pretty good.

if they did this when it hurt the bottom line i would applaud. now its a gimmick because they can no longer benefit from the sale of cigarettes. this decision was about bottom line and has nothing to due with ethics.

.

I heard this morning that they do about 120 billion a year with 2 billion coming from tobacco.

i reject your reality and substitute my own.

i mentioned my opinion to my assistant and he pointed out what you shared with me. i suppose i have to admit my opinion seems to not be based on very sound logic. i hate when the facts do not align with my opinion. i will admit my possible error here. i made my assistant get my dry cleaning for pointing out my error at work though. that will learn him to question my brain.

No, I tend to be cynical too, and as long as they are selling junk food and other "unhealthy" items, I will question their integrity.

It's a marketing decision, pure and simple. The positive publicity they will gain from this will offset the loss in sales & profits. Their cigarette sales have probably dropped to the point that they aren't going to take too big of a hit by dropping the product completely. They may have fairly big sales numbers, but I'd guess the profit margin on them is pretty slim. They have to price them in line with everyone else, or they won't sell any. Just like gasoline, people will go a pretty good distance to get the best price. The Indian tribes do very well for themselves selling cigarettes with no state taxes.
They will save a fair amount by no longer having to inventory a very costly product. No more concerns about counts coming up short (cigarettes are one of the most commonly stolen items, both by customers and employees), no more concerns about underage sales and the costs (training and penalties) associated with them. There are probably other cost benefits that I'm not thinking of at the moment.

Plus the "Do-Gooder" points.

"There are NO situations which do not call for a French Maid outfit." Lucky McSwervy

"~ya don't GET old by being weak & stupid!" - Airtwardo

[weekender 0]

>"No, I tend to be cynical too, and as long as they are selling junk food and other "unhealthy" items, I will question their integrity."


i totally agree with you. it can free up tons of prime real estate for even higher margin items. they are talking about strategic partnerships with hospitals and medical practices. thats just few examples of why im a cynic on this. i have no doubt the decision was about the bottom line and not ethics.

With that said, however, my original comment was on cigarettes having no margin left. that was wrong and i have to man up and admit it.

"The point is, I'm weird, but I never felt weird."
John Frusciante

[SkyDekker 1,121]

Andy9o8

Looks like we should give credit where credit is due when a large, publicly-traded for-profit corporation puts ethical social responsibility on the front burner.

It's always bugged me that pharmacy chains that hold themselves out as "wellness centers" - replete with mini-clinics, etc. - stock dozens of brands of tobacco poison behind the cashier's counter. This is overdue, but I'll take it. Are their competitors listening?

http://www.latimes.com/nation/nationnow/la-na-nn-cvs-caremark-cigarettes-tobacco-20140205,0,6663810.story#axzz2sTSsLwEP

Quote

WASHINGTON — CVS Caremark, the nation’s second-largest drugstore chain, plans to stop selling cigarettes and other tobacco products at its more than 7,600 retail stores by Oct. 1, a landmark decision that would make it the first national pharmacy company to cease tobacco sales.

In Ontario it has been against the law for pharmacies or retailers containing a pharmacy within their walls to sell tobacco products.

It is now also against the law in Ontario to openly display tobacco products. They have to be kept hidden. They cannot even been shown without being specifically asked for, by brand name.

This last measure has been especially hard for cigar vendors, since they technically are not allow to show you their products after asking them for their selection of cigars.

[SkyDekker 1,121]

Quote

With that said, however, my original comment was on cigarettes having no margin left. that was wrong and i have to man up and admit it.

In Ontario their margin is significantly lower than those of prescription medication.

[normiss 620]

Right.

While they continue to sell beer, wine, liquor, CHEEEEEP liquor and beer, snack foods, GMO food products, and homepathic crap.

For the health of customers my ass.

[grimmie 173]

Just keep selling the Twinkies!!!!

[Andy9o8 0]

normiss

Right.

While they continue to sell beer, wine, liquor, CHEEEEEP liquor and beer, snack foods, GMO food products, and homepathic crap.

For the health of customers my ass.

I say again, you gotta start somewhere, and a good thing is still a good thing, no matter how you spin it.

They're removing the one particular hypocrisy of selling tobacco poison in a store ostensibly dedicated to health and wellness. There's no down side to that. The fact that they may have farther to go doesn't negate that.

Oh, and btw, there are lots of US states in which alcohol sales in places like CVS is not permitted by that state's liquor laws.

[Pacific 0]

CVS is a business. Are you going to avoid them now because of your cynical ethics arguement?

I avoid Circle Ks and 7/11s because of the trashy element that frequents these places. CVS will no longer attract smokers or cigarette thieves. I'm sure CVS is aware of this and their non-smoking customers will likely take notice too. Their move to stop selling cigarettes is also good for the non-smoker.

I hate smoking and avoid smokers...so I've just become a loyal CVS customer regardless of CVS's true motives.

[lawrocket 3]

I see no reason to either applaud or not applaud. CVS is making a business decision, and apparently doing so in the absence of government mandate.

I agree - they've got alcohol and junk food up the wazoo. Those help the bottom line (imagine selling insulin and hawking twinkies at the same time). $2 billion in sales is no joke. But if it doesn't meet the profit margin of an 18 pack of Coors light, then it makes sense to toss them.

I just think it's fantastic to be able to drop a product and get applauded.

My wife is hotter than your wife.

[normiss 620]

I'm curious what dollar value to the bottom line the smoking cessation programs and products will add.

[SkyDekker 1,121]

jclalor

***im a cynic and see no reason to applaud them. in the past cigarettes had enough margin that large corporations like CVS, 7-11 and WAWA(shout out to the mid-atlantic) could price them below smaller stores and bodegas. This would get people in the stores to buy other items and refill their prescription. the decline of cigarette smoking in the US and huge increase in taxes has destroyed the margin. so they moved into other things like energy drinks and more groceries. i hear the sushi at the Duane Read on Wall Street is pretty good.

if they did this when it hurt the bottom line i would applaud. now its a gimmick because they can no longer benefit from the sale of cigarettes. this decision was about bottom line and has nothing to due with ethics.

.

I heard this morning that they do about 120 billion a year with 2 billion coming from tobacco.

Yeah so I looked it up....those are sales numbers, not profit numbers.

They say nothing about the actual margin on cigarettes.

[jclalor 12]

SkyDekker

******im a cynic and see no reason to applaud them. in the past cigarettes had enough margin that large corporations like CVS, 7-11 and WAWA(shout out to the mid-atlantic) could price them below smaller stores and bodegas. This would get people in the stores to buy other items and refill their prescription. the decline of cigarette smoking in the US and huge increase in taxes has destroyed the margin. so they moved into other things like energy drinks and more groceries. i hear the sushi at the Duane Read on Wall Street is pretty good.
if they did this when it hurt the bottom line i would applaud. now its a gimmick because they can no longer benefit from the sale of cigarettes. this decision was about bottom line and has nothing to due with ethics.

.

I heard this morning that they do about 120 billion a year with 2 billion coming from tobacco.

Yeah so I looked it up....those are sales numbers, not profit numbers.

They say nothing about the actual margin on cigarettes.

Being an x-smoker, I can tell you stores like CVS had rediculous prices for smokes, sometime 3 bucks a pack more than a gas station. I bet they made 20-40%

[ryoder 1,381]

normiss

Right.

While they continue to sell beer, wine, liquor, CHEEEEEP liquor and beer, snack foods, GMO food products, and homepathic crap.

For the health of customers my ass.

That shit's dangerous!
I had a cousin OD on it.

"There are only three things of value: younger women, faster airplanes, and bigger crocodiles" - Arthur Jones.

[weekender 0]

SkyDekker

******im a cynic and see no reason to applaud them. in the past cigarettes had enough margin that large corporations like CVS, 7-11 and WAWA(shout out to the mid-atlantic) could price them below smaller stores and bodegas. This would get people in the stores to buy other items and refill their prescription. the decline of cigarette smoking in the US and huge increase in taxes has destroyed the margin. so they moved into other things like energy drinks and more groceries. i hear the sushi at the Duane Read on Wall Street is pretty good.

if they did this when it hurt the bottom line i would applaud. now its a gimmick because they can no longer benefit from the sale of cigarettes. this decision was about bottom line and has nothing to due with ethics.

.

I heard this morning that they do about 120 billion a year with 2 billion coming from tobacco.

Yeah so I looked it up....those are sales numbers, not profit numbers.

They say nothing about the actual margin on cigarettes.

yes those are the topline numbers, however, i already showed the bottom line numbers too. the cents per share. it was not a rounding error. it was a real number.

"The point is, I'm weird, but I never felt weird."
John Frusciante

[SkyDekker 1,121]

jclalor

*********im a cynic and see no reason to applaud them. in the past cigarettes had enough margin that large corporations like CVS, 7-11 and WAWA(shout out to the mid-atlantic) could price them below smaller stores and bodegas. This would get people in the stores to buy other items and refill their prescription. the decline of cigarette smoking in the US and huge increase in taxes has destroyed the margin. so they moved into other things like energy drinks and more groceries. i hear the sushi at the Duane Read on Wall Street is pretty good.
if they did this when it hurt the bottom line i would applaud. now its a gimmick because they can no longer benefit from the sale of cigarettes. this decision was about bottom line and has nothing to due with ethics.

.

I heard this morning that they do about 120 billion a year with 2 billion coming from tobacco.

Yeah so I looked it up....those are sales numbers, not profit numbers.

They say nothing about the actual margin on cigarettes.

Being an x-smoker, I can tell you stores like CVS had rediculous prices for smokes, sometime 3 bucks a pack more than a gas station. I bet they made 20-40%

Right...but the 120 billion and 2 billion mentioned above are still sales numbers and give absolutely no indication on the margin on cigarettes during that sales period.

You couldn't even calculate it from those numbers....it doesn't even say anything about profits.

[weekender 0]

Pacific

CVS is a business. Are you going to avoid them now because of your cynical ethics arguement?

I avoid Circle Ks and 7/11s because of the trashy element that frequents these places. CVS will no longer attract smokers or cigarette thieves. I'm sure CVS is aware of this and their non-smoking customers will likely take notice too. Their move to stop selling cigarettes is also good for the non-smoker.

I hate smoking and avoid smokers...so I've just become a loyal CVS customer regardless of CVS's true motives.

I'm a free market guy. that is why i am cynical about motives. i have a good understanding why public companies make decisions. its about their balance sheets NOT their ethics.

it has no bearing on where i will shop. i shop where i want based on customer service and prices.

"The point is, I'm weird, but I never felt weird."
John Frusciante