logo
Weather page
GET THE APP
ePaper
google_play
app_store
  • Login
  • E-Edition
  • News
  • Sports
  • Obits
  • Opinion
  • Classifieds
    • Place an Ad
    • All Listings
    • Jobs
  • Special Sections
  • Photo Gallery
  • Contests
  • Lifestyle/Entertainment
  • Games
    • News
      • Local News
      • PA State News
      • Nation/World
    • Sports
      • Local
      • College Sports
      • State
      • National
    • Obits
    • Opinion
      • News
        • Local News
        • PA State News
        • Nation/World
      • Sports
        • Local
        • College Sports
        • State
        • National
      • Obits
      • Opinion
    logo
    • Classifieds
      • Place an Ad
      • All Listings
      • Jobs
    • E-Edition
    • Subscribe
    • Login
      • Classifieds
        • Place an Ad
        • All Listings
        • Jobs
      • E-Edition
      • Subscribe
      • Login
    Home Business CVS Caremark plans to stop tobacco sales
    CVS Caremark plans to stop tobacco sales
    Business, Nation World
    TOM MURPHY and MICHAEL FELBERBAUM AP Business Writers  
    February 6, 2014

    CVS Caremark plans to stop tobacco sales

     CVS Caremark’s decision to pull cigarettes and other tobacco products from its stores could ripple beyond the nation’s second-largest drugstore chain. 

    The move, which drew praise from President Barack Obama, doctors and anti-smoking groups when it was announced on Wednesday, puts pressure on other retailers to stop selling tobacco as well. But first they have to overcome their addiction to a product that attracts customers. 

    “They don’t make much money on tobacco, but it does draw people into the store,” said Craig R. Johnson, president of the retail consultancy Customer Growth Partners. 

    CVS Caremark Corp. said it will phase out tobacco by Oct. 1 in its 7,600 stores nationwide as it shifts toward being more of a health care provider. CVS and other drugstore chains have been adding in-store clinics and expanding their health care offerings. They’ve also been expanding the focus of some clinics to include helping people manage chronic illnesses like high blood pressure and diabetes.

    CVS has a store located in Bradford, Pa.

    CVS CEO Larry Merlo said the company concluded it could no longer sell cigarettes in a setting where health care also is being delivered.  In fact, as CVS has been working to team up with hospital groups and doctor practices to help deliver and monitor patient care, CVS Chief Medical Officer Dr. Troyen A. Brennan said the presence of tobacco in its stores has made for some awkward conversations.

    “One of the first questions they ask us is, ‘Well, if you’re going to be part of the health care system, how can you continue to sell tobacco products?”’ he said. “There’s really no good answer to that at all.”

    CVS, based in Woonsocket, R.I., follows a precedent set by other drugstores. Most independent pharmacies abstain from tobacco sales, according to the National Community Pharmacists Association. Pharmacies in Europe also don’t sell cigarettes, and neither does major U.S. retailer Target Corp., which operates some pharmacies in its stores.

    But the world’s largest retailer, Wal-Mart Stores Inc., which also operates pharmacies, does sell tobacco. So do CVS competitors Walgreen Co. and Rite Aid Corp.

    Health and Human Services Secretary Kathleen Sebelius called on others to follow the CVS example. “We need an all-hands-on-deck effort to take tobacco products out of the hands of America’s younger generation, and to help those who are addicted to quit,” she said in a statement.  

    Both Walgreen and Rite Aid representatives said Wednesday that they are always evaluating what they offer customers and whether that meets their needs. 

    The question of whether to sell tobacco is complex for retailers because it’s a revenue driver. Dollar stores such as Family Dollar have started selling it over the last couple years, and they note that smokers make more frequent stops at retailers in order to buy tobacco. That’s an important factor because these customers also may pick up other items when they visit. 

    In fact, CVS said that while it has about $1.5 billion annually in tobacco sales, it expects to lose about $2 billion in annual revenue by removing tobacco because smokers also buy other products when they visit. Overall, the company brought in more than $123 billion in total revenue in 2012.

    But CVS is in a unique position from some of its peers. While it trails only Walgreen in terms of number of drugstores, it draws most of its revenue from its pharmacy benefits management, or PBM, business. PBMs run prescription drug plans for employers, insurers and other customers.  

    Having the PBM business made it easier for CVS to disavow tobacco, according to Morningstar analyst Vishnu Lekraj. He noted that Walgreen, Rite Aid and other mass retailers depend more on convenience goods for their sales.  Even so, he said he thinks Walgreen may eventually follow CVS and remove tobacco because it also has emphasized its role as a health care provider. 

    Gabelli Funds analyst Jeff Jonas agrees. “I think once one chain does it, the other one really has to follow,” he said. Gabelli noted, though, that Rite Aid may be less likely to do so because it hasn’t made the same in-store investment in clinics as the other chains.

    Either way, the move by CVS highlights the pressure companies that sell tobacco are facing to kick that habit. Tobacco is responsible for about 480,000 deaths a year in the U.S., according to the Food and Drug Administration, which gained the authority to regulate tobacco products in 2009.

    The federal government has renewed efforts to reduce the death and disease caused by tobacco use on the heels of the 50th anniversary of the landmark 1964 surgeon general’s report that launched the anti-smoking movement. A new 980-page report issued last month by acting Surgeon General Boris Lushniak also urged new resolve to make the next generation smoke-free.

    Several cities, including San Francisco, Boston and many smaller Massachusetts communities have considered or passed bans on tobacco sales in stores with pharmacies. Other places like New York City have sought to curb retail displays and promotions and raise the legal age at which someone can buy tobacco products.

    Tags:

    business nation_world

    The Bradford Era

    Local & Social
    Latest news for you
    Day 1 of AMCC Softball Championships:  Wins for Pitt-Greensburg, PS-Behrend & PS-Altoona
    College Sports, Pitt Bradford, Softball, ...
    Day 1 of AMCC Softball Championships: Wins for Pitt-Greensburg, PS-Behrend & PS-Altoona
    Jo Wankel j.wankel@bradfordera.com 
    May 10, 2025
    The University of Pittsburgh at Bradford hosted Day 1 of the AMCC Softball Championships Friday. Penn State-Behrend, Pitt-Greensburg and Penn State-Al...
    Read More...
    {"bradfordera-website":"Website"}
    Fiancee treats man more like a child than as a partner
    Lifestyles
    Fiancee treats man more like a child than as a partner
    May 10, 2025
    DEAR ABBY: I’m engaged to a delightful woman from a foreign country. She’s a divorcee, and her 19-year-old son is doing well in college. She essential...
    Read More...
    {"bradfordera-website":"Website"}
    ‘Round the Square: ‘You won’t have a calculator in your pocket’
    News, Round the Square
    ‘Round the Square: ‘You won’t have a calculator in your pocket’
    May 10, 2025
    NO MORE: Remember standing near the landline phone, twirling the code around your fingers as you chatted with a bestie or a sweetie? Or, in Bradford, ...
    Read More...
    {"bradfordera-website":"Website"}
    Q&A with the DA: E-bikes (aka electronic bikes or pedalcycles with electronic assist)
    Headlines, Local News, News, ...
    Q&A with the DA: E-bikes (aka electronic bikes or pedalcycles with electronic assist)
    STEPHANIE VETTENBURG-SHAFFER McKean County District Attorney 
    May 10, 2025
    (Editor’s note: The information in this special series is for educational purposes only and is not intended to address any particular case, nor should...
    Read More...
    {"bradfordera-website":"Website"}
    Fixing the supports of a trampoline
    Lifestyles
    Fixing the supports of a trampoline
    May 10, 2025
    Dear Heloise: I've had a trampoline in my backyard for many years and realized the very thin pipe insulation around the supports that hold the net up ...
    Read More...
    {"bradfordera-website":"Website"}
    Are Your College Savings on Track?
    Education
    Are Your College Savings on Track?
    May 10, 2025
    (StatePoint) If you’re like many Americans, college savings may be taking a back seat to other financial priorities right now. Financial advisors want...
    Read More...
    {"bradfordera-website":"Website"}
    ePaper
    google_play
    app_store
    This Week's Ads
    Current e-Edition
    ePaper
    google_play
    app_store
    Already a subscriber? Click the image to view the latest e-edition.
    Don't have a subscription? Click here to see our subscription options.
    Mobile App

    Download Now

    The Bradford Era mobile app brings you the latest local breaking news, updates, and more. Read the Bradford Era on your mobile device just as it appears in print.

    ePaper
    google_play
    app_store
    Trending Recipes

    Help Our Community

    Please help local businesses by taking an online survey to help us navigate through these unprecedented times. None of the responses will be shared or used for any other purpose except to better serve our community. The survey is at: www.pulsepoll.com $1,000 is being awarded. Everyone completing the survey will be able to enter a contest to Win as our way of saying, "Thank You" for your time. Thank You!

    Get in touch with The Bradford Era
    Submit Content
    • Submit News
    • Letter to the Editor
    • Place Wedding Announcement
      • Submit News
      • Letter to the Editor
      • Place Wedding Announcement
    Advertise
    • Place Birth Announcement
    • Place Anniversary Announcement
    • Place Obituary Call (814) 368-3173
      • Place Birth Announcement
      • Place Anniversary Announcement
      • Place Obituary Call (814) 368-3173
    Subscribe
    • Start a Subscription
    • e-Edition
    • Contact Us
      • Start a Subscription
      • e-Edition
      • Contact Us
    CMG | Community Media Group
    Illinois
    • Hancock Journal-Pilot
    • Iroquois Times-Republic
    • Journal-Republican
    • The News-Gazette
      • Hancock Journal-Pilot
      • Iroquois Times-Republic
      • Journal-Republican
      • The News-Gazette
    Indiana
    • Fountain Co. Neighbor
    • Herald Journal
    • KV Post News
    • Newton Co. Enterprise
    • Rensselaer Republican
    • Review-Republican
      • Fountain Co. Neighbor
      • Herald Journal
      • KV Post News
      • Newton Co. Enterprise
      • Rensselaer Republican
      • Review-Republican
    Iowa
    • Atlantic News Telegraph
    • Audubon Advocate-Journal
    • Barr’s Post Card News
    • Burlington Hawk Eye
    • Collector’s Journal
    • Fayette County Union
    • Ft. Madison Daily Democrat
    • Independence Bulletin-Journal
    • Keokuk Daily Gate City
    • Oelwein Daily Register
    • Vinton Newspapers
    • Waverly Newspapers
      • Atlantic News Telegraph
      • Audubon Advocate-Journal
      • Barr’s Post Card News
      • Burlington Hawk Eye
      • Collector’s Journal
      • Fayette County Union
      • Ft. Madison Daily Democrat
      • Independence Bulletin-Journal
      • Keokuk Daily Gate City
      • Oelwein Daily Register
      • Vinton Newspapers
      • Waverly Newspapers
    Michigan
    • Iosco County News-Herald
    • Ludington Daily News
    • Oceana’s Herald-Journal
    • Oscoda Press
    • White Lake Beacon
      • Iosco County News-Herald
      • Ludington Daily News
      • Oceana’s Herald-Journal
      • Oscoda Press
      • White Lake Beacon
    New York
    • Finger Lakes Times
    • Olean Times Herald
    • Salamanca Press
      • Finger Lakes Times
      • Olean Times Herald
      • Salamanca Press
    Pennsylvania
    • Bradford Era
    • Clearfield Progress
    • Courier Express
    • Free Press Courier
    • Jeffersonian Democrat
    • Leader Vindicator
    • Potter Leader-Enterprise
    • The Wellsboro Gazette
      • Bradford Era
      • Clearfield Progress
      • Courier Express
      • Free Press Courier
      • Jeffersonian Democrat
      • Leader Vindicator
      • Potter Leader-Enterprise
      • The Wellsboro Gazette
    © Copyright The Bradford Era 43 Main St, Bradford, PA  | Terms of Use  | Privacy Policy
    Powered by TECNAVIA