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CVS stopped selling cigarettes today. Will other stores follow suit?

By September 3, 2014 - 5:03pm
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Back in February CVS announced they would stop selling cigarettes and other tobacco products. Today they announced they are officially a cigarette-free store. They make around $2 billion a year in revenue from tobacco products, but want to stay a health business that promotes health. Do you think this move will be made by other stores too?

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Hi Kelly-That's a great question! Thanks for bringing it to EmpowHER. I can't think of any other major companies that have made similar announcements - except when Target removed cigarettes several years ago. What do you think? Do you think this will start a trend?

I found today's CVS name change announcement to be really interesting - changing from CVS Caremark to CVS Health. It tells me that they're betting on the long run, and that they will more than make up the losses from cigarette sales in the sales of health/wellness related services.

Cigarette use and sales are on the decline. While $2 billion in cigarette sales may seem like a lot of money, tobacco is a low margin product and a lot more money can be made in other areas such as pharmacies, medical clinics, medical products and so forth. So while they packaged their change as a health move, I think it's more of a bottom line move for the company.

Let's hear from others on this topic. Are there businesses that currently sell cigarettes that you think should join CVS in ditching them?

Thanks again Kelly for a great "Ask" and for being with us on EmpowHER.



September 3, 2014 - 6:26pm
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