Skip to comments.Obama: CVS Decision to Stop Selling Cigarettes Will Have ‘Profoundly Positive Impact’
Posted on 02/05/2014 8:01:34 AM PST by Red in Blue PA
CVS, the countrys second-largest pharmacy chain, plans to stop selling all cigarettes and tobacco products, saying they have no place in a drugstore company that is trying to become more of a health-care provider. The White House released this statement from President Barack Obama on CVSs decision: I applaud this mornings news that CVS Caremark has decided to stop selling cigarettes and other tobacco products in its stores, and begin a national campaign to help millions of Americans quit smoking instead. As one of the largest retailers and pharmacies in America, CVS Caremark sets a powerful example, and todays decision will help advance my Administrations efforts to reduce tobacco-related deaths, cancer, and heart disease, as well as bring down health care costs ultimately saving lives and protecting untold numbers of families from pain and heartbreak for years to come. I congratulate and thank the CEO of CVS Caremark, Larry Merlo, the board of directors, and all who helped make a choice that will have a profoundly positive impact on the health of our country.
(Excerpt) Read more at blogs.wsj.com ...
Coca-Cola was a top performing stock for many years and then acted in the interest of a govt initiative instead of hat is good for shareholders, and shareholders got screwed. No different here.
Anything obozo touts is not a good thing.
THE GREAT OZ HAS SPOKEN!! Actually, if I were on the board of CVS or a stock holder, getting the blessing of the dungbeetleOTUS would scare me to no end. Everything he touches turns to lead.
As long as you can still buy cigarettes at any gas station in the country then then the only impact this decision will have is on CVS’s balance sheet.
Interesting fun fact: The new Dollar Store just a block from the old CVS just started selling tobacco products.
It certainly won’t have a positive impact on their stock prices.
What effect except to force people to drive to a different store? (And put more of those nasty CO2 molecules in the air.)
Dow down 0.51%
CVS down 3 times as much: 1.66%
Poor Feds and States losing all that tax money.
Clearing the shelves to make room for Big Choomer brand legalized marijuana.
Ok, to recap from the other thread: CVS is discontinuing sales of low margin tobacco products (less than 2% of their gross revenue) so that they can begin offering higher margin health services (in store clinics). Projected revenue lost from tobacco sales in the first year is $2 billion. Projected revenues gained from health services the first year is ... $2 billion.
Tobacco sales are declining and are projected to continue to do so. Demand for health services is rising and are projected to continue to do so.
Smart long term business move on CVS’s part ...
Would like to know the increase in Marijuana prescriptions.
I have a hangnail...I believe Marijuana will eleveate the pain.
And what portion of that margin is claimed by the retailer (as opposed to the manufacturer, distributor, wholesaler, etc?)
A doc in every CVS. You can get different shots in our local store.
If you were still paying attention to the other thread you were very active on before starting this one, I explained the reasons ...
Two years ago, I won the second place prize in an office March Madness brackets pool by just picking the opposite of whatever BO picked. You'll notice that BO has never publicized his bracket picks since.
Building them bigger...with an office for Planned Parenthood?
I’m going to start running out of businesses who aren’t in my boycott list if this keeps going on.
He also called for a very close game this pat Superbowl.
Anything he touches turns to crap. I have never seen nor heard anything with which he was successful in predicting.
Bingo, they are doing nothing but throwing away business. Also, cigarettes, like milk, are a draw item, getting people in the door who might buy other stuff once they are there.
We get our meds at CVS. Maybe we will switch to Walgreens now.
Yeah, for Indian Reservations....................
What is “MST’?.................
A nurse practioner in every store. Taking paying walk-ins for colds, sore throats, ear infections, pink eye, etc. Then writing prescriptions that can be convieniently filled right there, on site. Maybe even getting kickbacks, er, incentives, for referring tougher cases to designated outside providers.
Again, great business move on their part.
Yeah, and it might help your spelling, as well..............;^)
C stores will be happy to take their business.
I knew it didn’t look right...
I **believe** it stands for moist smokeless tobacco.
Post 93, in the other thread.
Not to worry, CVS is just making room for their medical marijuana displays.
BTW, IIRC, he said during the O’Reilly interview the Superbowl would be close.
Instead they’ll sell “medical” marijuana...
The various levels of government collect more in taxes than the above named combined.
I never understood why pharmacies sold cigarettes. Besides the obvious health conflict cigarettes are very low margin and high theft items. The space and investment could have better return in other products. I think its mostly being done because of tradition and not profit.
CVS won’t be selling cigs but will soon be selling prescription Mary Jo Juana! Oooh! The travesty of second hand doobie smoke!
My research says cigs are 13% profit margin for stores. So not trivial by any means. And 40% of convenience store (not pharmacy) gross sales are tobacco.
Wondering, once they get everyone to quit smoking and buying cigs, where will the (HUGE amount) tax money come from?
Health and beauty aides are 40-50. Prescriptions are 100 or more. The cost to carry all brands has risen dramatically since tax increases. The theft is high on these items. At best they create traffic for other sales.
You have to ask? LOL....
Dumb question...I don’t know of anyplace that has tobacco anywhere but right at the checkout. Why is thief so high?
I’ve always thought it was ridiculous that drugstores, which are supposedly trying to make people healthier, sold cigarettes.
“Ok, to recap from the other thread: CVS is discontinuing sales of low margin tobacco products (less than 2% of their gross revenue) so that they can begin offering higher margin health services (in store clinics). Projected revenue lost from tobacco sales in the first year is $2 billion. Projected revenues gained from health services the first year is ... $2 billion.”
What does one have to do with the other? Are the new CVS health services going to be installed in the cigarette rack behind the counter?
It’s a crock of crap publicity stunt to say “we’re thinking of you so no more smokes”.
Actually, the word that comes to mind is “daytrader.”