What Business Will STOP Selling Cigarettes in 2014
This seems like it could be a huge blow to the tobacco industry, but haven’t we all wondered why PHARMACY’S sell tobacco products. They are suppose to be, the place you go to improve your health. Right?
CVS is now trying to prove that they care about your health! According to The Washington Post, CVS announced yesterday that they’re going to stop selling cigarettes and all other tobacco products by October 1st, at all 7,600 of their stores. That makes them the first major drug store chain to ban tobacco sales.
This will cost CVS approximately $2 billion a year in lost sales. Even though their revenues are around $125 billion, that’s still significant. Their decision has drawn praise from health officials, and even President Obama.
Your first instinct might be that CVS must be planning on making even MORE money by not selling cigarettes . . . since we know all corporations are out for evil right?
CVS is positioning itself as the pharmacy chain that cares about your health. They’ve already been making a ton of money by transitioning into light health care services, with “MinuteClinics” at several locations.
By dropping cigarettes, CVS’s chief medical officer says it will make it easier to make more deals with health plans to provide primary care medical services . . . and deals with hospitals to handle urgent care patients on nights and weekends.
And those deals will be worth FAR more than the $2 billion they lose in tobacco sales.