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CVS will stop tobacco sales 10/1

RJKarl

RJKarl

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This is big news. They are saying the $2B in lost sales can be overcome by branding themselves more clearly as a healthcare company.

I wonder if other pharmacy chains will follow.
 
Jesus Christ. What bullshit. Cigs have gotten me every babe I've ever bulldozed. Can't believe they're doing this to my good friends: the twitter generation. Unbelievable. CVS should change its name to KVS. Keeping Virgins Sexless.
 
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ChrisPaul3 said:
Jesus Christ. What bullshit. Cigs have gotten me every babe I've ever bulldozed. Can't believe they're doing this to my good friends: the twitter generation. Unbelievable. CVS should change its name to KVS. Keeping Virgins Sexless.
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I thought cigs stopped getting guys laid in the 80's. Am I missing some sarcasm? Sorry, tired today.
 
Brangus said:
I thought cigs stopped getting guys laid in the 80's. Am I missing some sarcasm? Sorry, tired today.
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I don't think ChrisPaul3 is ever sarcastic. At least, not from any of his posts that I can recall.
 
single ph liked newports is HOF
 
RJKarl said:
This is big news. They are saying the $2B in lost sales can be overcome by branding themselves more clearly as a healthcare company.

I wonder if other pharmacy chains will follow.
Click to expand...

That 2B is going to be tough to overcome unless they do some serious rebranding. I honestly don't see how they'll make it up. If that 2B is from cigarette sales alone, they definitely won't. Smokers drink, so they have to account for shit like beer sales too. Pharmacy pick-ups, etc... They'll lose more than just sales from smokes directly.
 
I'm guessing they estimated that. At least I hope they did. Reports I've seen say they expect to make it up from their expanding health services.
 
EatLeadCommie said:
That 2B is going to be tough to overcome unless they do some serious rebranding. I honestly don't see how they'll make it up. If that 2B is from cigarette sales alone, they definitely won't. Smokers drink, so they have to account for shit like beer sales too. Pharmacy pick-ups, etc... They'll lose more than just sales from smokes directly.
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The article I read said $1.5 billion for direct tobacco sales, and $0.5 from the ancillary products that smokers buy.
 
EatLeadCommie said:
That 2B is going to be tough to overcome unless they do some serious rebranding. I honestly don't see how they'll make it up. If that 2B is from cigarette sales alone, they definitely won't. Smokers drink, so they have to account for shit like beer sales too. Pharmacy pick-ups, etc... They'll lose more than just sales from smokes directly.
Click to expand...

jeez. i'm shocked they didn't think of this.
 
No way a company like CVS doesn't make a decision like this without doing some pretty intensive modeling and consumer research.
 
My guess is that cigarettes are a low margin product and they didn't see it as a driver for other higher margin sales so they decided that the PR that will come from giving up cigarettes is worth the loss in low margin sales.
 
and if they can take a chunk out of the quest diagnostics of the world that would be favorable.
 
Principled stand considering they will be branding themselves as a health provider. It will hurt walk-in traffic. You know smokers are making other impulse purchases when they go in for cigs. Other states are already banning cig sales in pharmacies already, so they are getting out front on this.

It will be interesting to watch their transition from convenience store with pharmacy in the back to an actual health provider. Wonder if they'll continue to sell snack food and soda given our obesity epidemic. Same rationale would apply, yes?
 
awaken said:
Principled stand considering they will be branding themselves as a health provider. It will hurt walk-in traffic. You know smokers are making other impulse purchases when they go in for cigs. Other states are already banning cig sales in pharmacies already, so they are getting out front on this.

It will be interesting to watch their transition from convenience store with pharmacy in the back to an actual health provider. Wonder if they'll continue to sell snack food and soda given our obesity epidemic. Same rationale would apply, yes?
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I don't think you're going to see a major change in their retail stores.

Their health care business is really about the pharmacy and, particularly, their non-retail business.
 
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