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CVS becomes first big US drugstore chain to drop tobacco

Until they can't buy them there anymore either.

nah, they'll just keep raising the price. if you think the marijuana black market is bad, try illegal tobacco on for size.

so glad to be out of that game.
 
It seems strange for a profit motivated corporation to suddenly become unnecessarily altruistic.

One wonders if the hand of a corrupt, rogue president is in here somewhere. Did one of the tobacco companies fail to sufficiently contribute to Democrats?

I doubt it's some elaborate conspiracy.

They already stated that the profit margin on cigarettes wasn't that significant to their business, and the publicity and favor this will probably curry with a certain brand of consumers will probably off set that.
 
Right Wingers should be applauding that a private business is making their own decisions.

They did make their own decision I just hope they really are ready for the lost revenue that is about to happen.
 
They did make their own decision I just hope they really are ready for the lost revenue that is about to happen.

they won't lose that much, according to the news their annual revenues are 130 billion and tobacco sales are about 2 billion of that. hardly a drop in the bucket.

Central Market grocery stores here in WA don't sell Tobacco, and I believe whole food doesn't either. they don't seem to be at a loss for it.
 
I doubt it's some elaborate conspiracy.

They already stated that the profit margin on cigarettes wasn't that significant to their business, and the publicity and favor this will probably curry with a certain brand of consumers will probably off set that.

If that demographic was that big of a money maker, retailers would be dumping tobacco products left and right.

I believe it all boils down to having enough anti-smoking members on the board of directors, to vote to discontinue tobaccos sales.
 
they won't lose that much, according to the news their annual revenues are 130 billion and tobacco sales are about 2 billion of that. hardly a drop in the bucket.

Central Market grocery stores here in WA don't sell Tobacco, and I believe whole food doesn't either. they don't seem to be at a loss for it.

Something you have to take into consideration, are the sales of other products that will drop when tobacco buyers go elsewhere. Most buyers didn't come into CVS just to buy tobacco; they would probably purchase other products as well, whether it be intentional, or impulse purchases. How many tabacco buyers brought their kids with them? It's damn near impossible to bring a kid into any given store without buying a candy, or a coke.
 
Something you have to take into consideration, are the sales of other products that will drop when tobacco buyers go elsewhere. Most buyers didn't come into CVS just to buy tobacco; they would probably purchase other products as well, whether it be intentional, or impulse purchases. How many tabacco buyers brought their kids with them? It's damn near impossible to bring a kid into any given store without buying a candy, or a coke.

I just don't think it's as big a deal as people make it out to be. I would be very surprised if Tobacco products remain available in retail stores outside of specialty tobacco stores in 20 years time, the share of smokers is declining in the United States and will continue to do so...... it becomes to the point where tobacco will take up shelve space that something else can occupy. large corporations rarely make decisions as part of a "moral stand" unless they see profit in the message. I'm sure internal studies CVS has conducted indicate a possibility of more profit doing something else.....
 
I just don't think it's as big a deal as people make it out to be. I would be very surprised if Tobacco products remain available in retail stores outside of specialty tobacco stores in 20 years time, the share of smokers is declining in the United States and will continue to do so...... it becomes to the point where tobacco will take up shelve space that something else can occupy. large corporations rarely make decisions as part of a "moral stand" unless they see profit in the message. I'm sure internal studies CVS has conducted indicate a possibility of more profit doing something else.....

If tobacco users were declining as you say, more retailers would be discontinuing tobacco sales more rapidly. Tobacco has been quite popular for a few hundred years now and will continue to be for some time to come.

At the end of the day, it may see a drop in collateral sales, or it might not make a difference. Will it cause an increase in overall sales? Doubtful. They may see increases in individual locations, especially those located in the bible belt--ironically, the dreaded "bible beaters" will help the anti-smoking Libbos out on this one.
 
Something you have to take into consideration, are the sales of other products that will drop when tobacco buyers go elsewhere. Most buyers didn't come into CVS just to buy tobacco; they would probably purchase other products as well, whether it be intentional, or impulse purchases. How many tabacco buyers brought their kids with them? It's damn near impossible to bring a kid into any given store without buying a candy, or a coke.

The article I read on this today says that the other purchases are built into the $2 billion estimated sales loss. Tobacco products are about $1.5 billion and another $500 million of other stuff, just as you mentioned.

As a stockholder, I would have preferred if they let someone else be the trailblazer and if it enhances business then great. Time will tell ( in future earnings statments) if this was a good idea.
 
If tobacco users were declining as you say, more retailers would be discontinuing tobacco sales more rapidly. Tobacco has been quite popular for a few hundred years now and will continue to be for some time to come.

At the end of the day, it may see a drop in collateral sales, or it might not make a difference. Will it cause an increase in overall sales? Doubtful. They may see increases in individual locations, especially those located in the bible belt--ironically, the dreaded "bible beaters" will help the anti-smoking Libbos out on this one.

The big tobacco companies are doing more business overseas these days anyway...Look at the millions of new customers they are expecting. They won't lose money. :naughty:

Greetings, apdst. :2wave:
 
The article I read on this today says that the other purchases are built into the $2 billion estimated sales loss. Tobacco products are about $1.5 billion and another $500 million of other stuff, just as you mentioned.

As a stockholder, I would have preferred if they let someone else be the trailblazer and if it enhances business then great. Time will tell ( in future earnings statments) if this was a good idea.

Tobacco and alcohol are just a draw, to get people in the door and purchase products with a higher profit margin.

Tobacco and alcohol are usualy single digit markups, but they create profit with impulse buys that could be as much as a 20% markup.
 
Who would buy cigarettes at CVS, anyway? When I saw the clip on the news, it showed "B reel" of an employee stocking the cigarettes, and they were like $8.50 a pack. A pack. Just one.

CVS has the right to do what they want to do, but a 2 billion dollar a year loss of income is pretty substantial.
 
Eh, I haven't smoked in 15 years so this doesn't affect me in the least. I have no problem with any company or private business deciding not to sell tobacco... or alcohol, or junk food, or red meat for that matter.

I would have a problem if there were local/federal mandates requiring companies and private business to cease selling these products. That isn't the case here, so meh. :)
 
I have a lot of respect for him and his company. They are making a morally correct choice. A company that is there to dispense medical products should not sell something that will kill the people who use it.

Do not most medical products have the same potential ;). Its all about how it is being used.

Being a smoker I have no issue with their decision and I cannot believe that anyone would.
 
I'm sure large retailers get a better deal, but in the 80s I had a coffee shop in The Imperial Palace casino. We sold cigarettes and I remember the margins as being pretty low.

With a smoke shop every 500 feet I can't imagine who buys cigarettes in a CVS? I think they made a wise decision and they'll get credit for trailblazing. The cigarette market is dying off. The discount imports are hurting them.

They can barely advertise.

Every country, including ones notorious for smoking, are cracking down and restricting smokers spaces. Smokers are the new refugees of the 21st Century, in huddled masses, yearning to be able to light up. Every year new laws are passed moving smoking from parking lots, streets, parks, beaches to fewer areas. Smoking is no longer a joy, it is a burden.

Ecigs are the first alternative for addicts that works even better than the real thing. They will lose millions of customers just in the next few years to this phenomena alone. Vaping shops that don't sell cigarettes are springing up everywhere. Times they are a'changin.

Big Tobacco will be gone by the end of this century. I'm always right about these things.






If I'm wrong, dig me up and criticize me. :roll:
 
I have a lot of respect for him and his company. They are making a morally correct choice. A company that is there to dispense medical products should not sell something that will kill the people who use it.

Why? They are in the business of making money and if people want to buy products that can kill them that decision is on them.
 
Do not most medical products have the same potential ;). Its all about how it is being used.

Being a smoker I have no issue with their decision and I cannot believe that anyone would.

But medicine is meant to cure people, stop pain or be beneficial to the people who use it, smoking products do the opposite, they kill you.
 
Why? They are in the business of making money and if people want to buy products that can kill them that decision is on them.

because they choose differently, they want to make money but not from tabacco products. They are free to decide to not sell items like that. People can buy them just about anywhere but not with them, it is their right to decide that, it hurts nobody but the bottom line.
 
because they choose differently, they want to make money but not from tabacco products. They are free to decide to not sell items like that. People can buy them just about anywhere but not with them, it is their right to decide that, it hurts nobody but the bottom line.

But the bottom line is the entire reason they are in business. It's nonsensical to put emotion into your business decisions, and frankly, it's just bad business. The only thing that would make sense to stop selling a product is if it wasn't turning you a profit or you wanted to replace it with another product that can yield you higher returns. Otherwise, it's just dumb and counterproductive.
 
But medicine is meant to cure people, stop pain or be beneficial to the people who use it, smoking products do the opposite, they kill you.

Yes, but some medicines have all sorts of terrible side effects or are dangerous to take. That is one of the reasons the control things for "safety" asses make certain drugs require a prescription. Which btw, is counter to the entire concept of freedom and just empowers doctors. Just sayin'..
 
CVS just needed to make shelf space for the legal sale of pot.
 
But the bottom line is the entire reason they are in business. It's nonsensical to put emotion into your business decisions, and frankly, it's just bad business. The only thing that would make sense to stop selling a product is if it wasn't turning you a profit or you wanted to replace it with another product that can yield you higher returns. Otherwise, it's just dumb and counterproductive.

That is your opinion, they have a different opinion and they have the right to choose to put ethics before profit. A lot of companies do that and I applaud that. You may feel it is bad business but if I would live in a town with a CVS I would go and shop there because I feel they are on the right track.
 
But the bottom line is the entire reason they are in business. It's nonsensical to put emotion into your business decisions, and frankly, it's just bad business. The only thing that would make sense to stop selling a product is if it wasn't turning you a profit or you wanted to replace it with another product that can yield you higher returns. Otherwise, it's just dumb and counterproductive.
I'm surprised a libertarian is struggling to understand the PR move of not selling tobacco. Perhaps it's time you changed your lean?
 
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