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CVS will stop tobacco sales 10/1

Sleepy said:
The article I read said $1.5 billion for direct tobacco sales, and $0.5 from the ancillary products that smokers buy.
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That makes more sense to me, but I have a hard time imagining the replacement of the lost business that comes with stocking an area about 2x5 feet behind a cashier.

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 didn't realize that part in bold. It makes more sense in that context, but God our politicians are such tards.
 
very confusing reactions to this... everyone is always talking about how companies should care about more than their bottom line; then cvs announces this and eeerrrbody is like "OMG how will CVS survive?! $2 BILLION are you crazy?!"
 
I can't say I have honestly ever actually seen someone buy smokes at a CVS. I assumed they had them, I guess, but I can't remember ever seeing it.
 
It would be helpful to know what the contribution margin is on that $2B to assess the true impact of the move.
 
Baconwfu said:
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.
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Not a guess. Cigs are low margin. They also bring the dregs of society to the stores. They will benefit from this decision.
 
deacondamo said:
Not a guess. Cigs are low margin. They also bring the dregs of society to the stores. They will benefit from this decision.
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Half the shit they sell in CVS is low margin so that doesn't explain much, IMO.

I wonder also if there's some added cost and time of dealing with cigarette taxes and paying them out to states and municipalities.
 
deacphan said:
and if they can take a chunk out of the quest diagnostics of the world that would be favorable.
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+1 bazillion

I did some work with Caremark last year and it wouldn't surprise me at all if they tried to go this route
 
EatLeadCommie said:
Half the shit they sell in CVS is low margin so that doesn't explain much, IMO.

I wonder also if there's some added cost and time of dealing with cigarette taxes and paying them out to states and municipalities.
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The Federal Excise tax ($1.0066/pack) is paid by the manufacturer, and the state excise tax (weighted average of $1.30/pack - ranging from $0.17 - $4.25/pack) is paid by the wholesaler. The retailers just pay regular sales tax.
 
Sleepy said:
The Federal Excise tax ($1.0066/pack) is paid by the manufacturer, and the state excise tax (weighted average of $1.30/pack - ranging from $0.17 - $4.25/pack) is paid by the wholesaler. The retailers just pay regular sales tax.
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What the hell do you know about any of this?

PS - Check your email you knob.
 
I think this is a good idea and the idea that pharmacies sell cigarettes always seemed hypocritical.

However if cvs is going to go down this route shouldn't they also ban caffeinated soft drinks? Just about every argument you can make about cigarettes you can say the same for soft drinks. I mean there additive, terrible for you, and isn't obesity an cardiovascular disease the leading cause of death in America?

Your going to have a hard time selling me as a health store when some disgusting fatty comes waddling through the door to buy a shopping cart worth of soft drinks for the week.
 
Wonder if CVS gonna have a 2 for 1 sale or sumptin on Malboros, gotta stock up
 
WFcatamount22 said:
I think this is a good idea and the idea that pharmacies sell cigarettes always seemed hypocritical.

However if cvs is going to go down this route shouldn't they also ban caffeinated soft drinks? Just about every argument you can make about cigarettes you can say the same for soft drinks. I mean there additive, terrible for you, and isn't obesity an cardiovascular disease the leading cause of death in America?

Your going to have a hard time selling me as a health store when some disgusting fatty comes waddling through the door to buy a shopping cart worth of soft drinks for the week.
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It's a question of degree. You can drink a soda every day and not really raise your risk for disease much, as long as your other habits are healthy. But if you smoke every day, your risk for lung disease goes way up no matter what else you do.
 
So when do they start carrying pot in Colorado?
 
Not that big a deal for pharmacies...now if the gas station down the street announced they were no longer carrying cigs? RIOTS IN THE STREETS.



...of poor neighborhoods, anyway.
 
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