CVS Removed Tabaco

In 2014, US drugstore brand CVS announced to stop selling any cigarettes and tobacco related products in stores. CVS became the first major pharmacy that promoted the quit-smoking program.

My Initial Three Thoughts:

—– What caused CVS make this decision, and why?

It is impossible for CVS unnoticing the fact that the action of stopping selling Tabaco hurts the sales of the company. CVS definitely cares about their company’s revenue and their predominate position of the US pharmacy industry. Thus I think the idea of stopping selling Tabaco is part of the CVS marketing plan. CVS wanted to create a huge sensation by announcing their decision, and draw the global attention to CVS.

—– Is this a wise decision?

As a result of this risky behavior, the sales and the amount of attentions may significantly increase over a short period. However, from the long-term aspect, I think this is an unwise decision.

—– Did CVS really care about customers’ healthiness?

My answer is probably NO. I believe large corporate firms like CVS will always place their revenue and reputation in the first place. Stop selling tobacco did help it to create a better image and win supports from those who don’t smoke, and conductively for CVS claim to be a health-care company.

One Year Later…

One year ago, CVS claim to stop selling tobacco is a right decision. Nevertheless, one year later, CVS was detailing the impact of alcohol prohibition. While the prescription sales continue to rise, general merchandizes sales tumbled nearly 8% on a same store basis. CVS blamed their selling slump on banning tobacco.

Interesting Facts:

1.CVS changes its name from CVS Caremark to CVS Health with the prohibition of Tabaco.

2.Although smoking is not cool, but fact proves that cigarettes are hot for CVS’s stock dropped 3% after announcing the decision.

http://www.cvshealth.com/thought-leadership/message-from-larry-merlo-president-and-ceo

http://money.cnn.com/2015/08/04/investing/cvs-earnings-cigarettes/