[Kingsley Davis]

because they really......care.

"CVS/Caremark, the country’s largest drugstore chain in overall sales, announced on Wednesday that it planned to stop selling cigarettes and other tobacco products by October.

The company’s move was yet another sign of its metamorphosis into becoming more of a health care provider than a largely retail business, with its stores offering more miniclinics and health advice to aid customers visiting its pharmacies.

The company estimated that its decision would shave an estimated $2 billion in sales from customers buying cigarettes and other products, including incidental items like gum that those shoppers might also purchase. That is a mere dent in its overall sales of $123 billion in 2012, the latest figures available."
http://www.nytimes.com/2014/02/06/busine...iness&_r=0

   

[dads]

The CVS by me never had Cope Wintergreen pouches so good riddance.

[Vroom]

When I heard this, the first thing I thought was "why the fuck were pharmacies selling cigarettes in the first place?'

[Aliblahba]

They know something we don't. Corporations don't just decide to give up 2B in revenue. The guv won't make tobacco illegal, but can make it to where selling/using is a huge liability.

[Kingsley Davis]

(02-05-2014 08:40 PM)Vroom Wrote:  

When I heard this, the first thing I thought was "why the fuck were pharmacies selling cigarettes in the first place?'

Obamacare/Affordable Care Act...hmm.

   

[Cincinnatus]

Considering all the licensing, taxation, etc. that goes along with selling tobacco products, I'm wondering if they've simply decided it's not worth the hassle anymore. I bet convenience stores have a low profit margin on cigarettes anyway - my dad was telling me yesterday that the government makes more money on a pack of smokes than manufacturers like Phillip Morris do.

[Drazen]

I don't see how this really hurts them. A very small percentage of their sales is tobacco. Who stops into CVS to pick up a pack of smokes?

Also, by doing this, they are setting themselves to replace doctors clinics in the future as companies reduce costs. These minute clinics are the future. They are getting into the soon to be very profitable business of providing cheaper, lower cost healthcare when the lines at the doc due to Obamacare start getting out of hand.

[Tex Pro]

Someone mentioned that they are doing this because CVS is using a lot more self-checkout aisles and they don't want to have to manually check for ID for cigs. Not sure if that is the main reason, but it sounds reasonable.

[billbudsocket]

Bunch of hypocrites. You can be sure they'll still be selling booze and junk food. So much for caring for everyone's health.

[Kickb]

CVS was fourth on my list for places to buy cigarettes.

1)Gas station
2)Discount cig store
3)grocery store
4)CVS/Walgreens

I'm pretty sure the only times I ever bought squares there was when I was in buying plan B pillz, pregnancy test. or home drug tests. Good riddance!

[DJ-Matt]

I see so many discount places with signs like "all cartons at state minimum", although I do not know what the amount is, if the packs are sold the same way at CVS maybe they really aren't turning a profit because I assume they're staying competitive.

[Menace]

My understanding was that CVS hoped to partner with more health companies, and cigarettes may have legally prevented them from doing so. For example, CVS provides flu shots during flu season. They may be able to provide more (and more profitable) medical services in-store if they no longer sell cigarettes. There has to be a profit motive behind this.

[Faust]

Quote:

My understanding was that CVS hoped to partner with more health companies, and cigarettes may have legally prevented them from doing so. For example, CVS provides flu shots during flu season. They may be able to provide more (and more profitable) medical services in-store if they no longer sell cigarettes. There has to be a profit motive behind this.

Is there some law about being able to partner with health companies if you sell tobacco? I've never heard of one.

[germanico]

Hahaha... I can bet that they just invested a large sum in 7-11 or Circle-K stock.

[Vroom]

(02-05-2014 11:20 PM)Faust Wrote:  

Quote:

My understanding was that CVS hoped to partner with more health companies, and cigarettes may have legally prevented them from doing so. For example, CVS provides flu shots during flu season. They may be able to provide more (and more profitable) medical services in-store if they no longer sell cigarettes. There has to be a profit motive behind this.

Is there some law about being able to partner with health companies if you sell tobacco? I've never heard of one.

I'm not sure about about anywhere else, but here in australia an organisation named "healthway" started sponsoring stadiums and sports teams - on condition that they make their premises smoke free, and forego any other sponsorships from other companies deemed "unhealthy", such as fast food and alcohol.

I don't smoke, but I can't help but think it a bit ridiculous to see the drag racing/sprintcar track become the "quit motorplex". Obviously a fair number of the regular patrons smoke, it's an open air venue, and cigarette smoke can't be worse than the smell of burnt rubber, dirt and petrol fumes. But, they've got the money on offer, so all these clubs will jump through hoops to get it, and to hell with their fans.

[paninaro]

(02-05-2014 08:51 PM)Drazen Wrote:  

I don't see how this really hurts them. A very small percentage of their sales is tobacco. Who stops into CVS to pick up a pack of smokes?

Also, by doing this, they are setting themselves to replace doctors clinics in the future as companies reduce costs. These minute clinics are the future. They are getting into the soon to be very profitable business of providing cheaper, lower cost healthcare when the lines at the doc due to Obamacare start getting out of hand.

I think you're right on this. Cigarettes are a low-margin business, while minute clinics are where the big money is. Most insurers pay a set amount for the procedures there (flu shot, etc) so CVS will just use their economy of scale to keep their costs of providing those procedures relatively low. I'm sure they can underprice doctor's offices since those offices have no scale and are generally inefficient.

I actually use clinics like this for some care, even though I have insurance and a regular doctor. The clinics have better hours and I don't really need to go to my doctor's to receive a flu shot. This is definitely the future of medicine -- use walk-in clinics for the basic stuff, and go to your "real" doctor for more complicated issues.