http://www.usatoday.com/story/news/nation/2014/02/05/cvs-will-no-longer-sell-tobacco-products/5207853/http://www.usatoday.com/story/news/nation/2014/02/05/cvs-will-no-longer-sell-tobacco-products/5207853/
And look at their social media
http://supermarketnews.com/community-amp-social-networking/social-media-drives-cvs-loyalty
And look at their social media
http://supermarketnews.com/community-amp-social-networking/social-media-drives-cvs-loyalty
82 comments:
That's an admirable move by CVS, though I was a little less inspired when I read that tobacco sales only make up about 2% of CVS' profits. The "programmed"part of my brain instantly envisioned the tobacco attorneys as cool customers brushing off a two billion dollar loss... man, cigarettes ARE cool! But seriously, it is a pretty obvious move for a so-called health store to make. Regarding the MoneyTrashers campaign, I think it's a great idea/incentive. I know a bunch of people with the CVS cards and maybe one person that actively uses it. Way to go CVS. Walgreens... your move.
I think this is a great move for CVS. As we discussed in class last week, health and wellness movements are taking over in America. To me, this seems like perfect timing for such a big move. The discussion of other unhealthy items sold in the store is interesting to me. I think timing is the biggest, since out of those items such as sweets, alcohol, soda, and tobacco, tobacco is probably considered the most "deviant" at this time. I look forward to seeing what changes will follow. The incentive programs and moneytrashers campaign also seem like a great way to build positivity with customers.
I am very supportive about the decision CVS just has made. it s a very brave move for CVS. However, they are expecting 2 billion dollar loss a year; i think its going to turn out to be a good favor for the company. Because, as we all know, people are more concerned about their health and weight more than ever as a whole. Hopefully, The decision will help many people quit smoking, one of the worst habits. i would love to see this movement against smoking in every store.
I like the way CVS is thinking. It's been too long that this poison has been like royalty in the market. I always thought it was hypocritical for stores like CVS to claim they're all about health, and yet have a complete section for this stuff. Hopefully more chains follow suit. I didn't read anything about the electronic cigarettes in here, though, so i'm interested how they're going to handle that market as well.
I like the way CVS is thinking. It's been too long that this poison has been like royalty in the market. I always thought it was hypocritical for stores like CVS to claim they're all about health, and yet have a complete section for this stuff. Hopefully more chains follow suit. I didn't read anything about the electronic cigarettes in here, though, so i'm interested how they're going to handle that market as well.
I like the way CVS is thinking. It's been too long that this poison has been like royalty in the market. I always thought it was hypocritical for stores like CVS to claim they're all about health, and yet have a complete section for this stuff. Hopefully more chains follow suit. I didn't read anything about the electronic cigarettes in here, though, so i'm interested how they're going to handle that market as well.
I think this decision is a little surprising. I would have loved to see the CFO’s face when he or she learned the company was giving up $2 billion to strengthen the company’s brand positioning. I’m fully supportive of retailers removing tobacco products; I’m just not sure if it will have the desired outcome. Right now I view Walgreens and CVS as a mini Walmart. The competitive advantage over Walmart being quicker shopping. The fact that they have a pharmacy has never made me associate them with a wellness health vendor. I see it as a convenience part of the business. Grocery stores and retailers like Walmart have pharmacies and are not associated with a wellness positioning. If CVS wants to build on this strategic move they need to have a differentiator in the wellness segment. Maybe they provide fresh produce in urban food deserts, have the cheapest prescriptions or specialize in natural remedies. Either way I don’t believe they have completely carved out that niche yet. The cigarette display has never caused brand incongruity in my mind when I go to pick up my prescription or hairspray. I shop at CVS because it’s quick and the location is close.
I think that's a good move because people will see CVS is all about improving health. It means CVS will gain positive views from customers who are looking for a trusted brand to buy their medicine.
However, CVS will lose $2 billion in sales. I'm wondering what strategy they are going to do next to maintain annual sales. They could offer more medicine that I dont think it could increase sales.
I think this is a good move by CVS and smart to get ahead of the trend. I think this could potentially give CVS the chance to focus on other opportunities, like improving their mini clinics. These other opportunities can erase the money lost from tobacco sales
CVS's move to remove tobacco products from their shelves is a risky one, but also could work out for them. As a smoker I find myself in a CVS quite often buying cigarettes and thats about it and I imagine I'm not the only one. I never go into CVS unless I need a tobacco product. I can see why they are making this move to better support their image as a company, but is the image worth the amount of revenue that will be lost by removing these products? I'm interested to see how it works out for them. I'm also interested to see which company will be next to follow in their footsteps.
As a tobacco user (that needs to quit), I do not care for this strategy. People have a right to do what they choose to their bodies. Whether it be good or bad. I personally do not buy from CVS so this will not effect me, but the problem with them deciding to stop selling tobacco products is that it will upset a lot of tobacco users that do buy from CVS. It is also not a good financial decision. I read that their stock just took a big hit because of this announcement. As bad as tobacco is, it sells! Stores and business make a ton of money off tobacco products so I do not see why anyone would want to stop selling it.
I thought that this was really awesome when I first came across this story on the news. I figured that it was the company trying to make a ethical decision to stop selling cigarettes because they are bad for your health. In actuality they are just re-directing their business so that they will just make more money off of the new Obamacare that many, previously uninsured, now have. Still a big step in getting tobacco out of citizens' hands!
CVS will have to heavily contemplate the pros and cons of their decision to discontinue tobacco products in their stores. Though I don't believe people who smoke should feel hurt, I think that CVS is making itself vulnerable to financial decline by getting rid of a product that generates a lot of sales. The bottom line is, if people want to get tobacco products, there are about 50 other places to find them within the vicinity of any CVS location. With this in mind, I believe that a good question to reflect upon for the company is whether "the smoker demographic will begin to shop at those 50 other said locations instead due to convenience?". If the answer is yes, than the company is looking at a decrease in not only tobacco sales, but regular sales of all other products as well. On the positive (more public relations/marketing) side, CVS's decision to discontinue tobacco products might attract new investors, stock holders, and partnerships with those looking to support a healthier lifestyle. This could help to create a new wave of revenue and potential clients which could help to raise capital exceeding that of tobacco sales anyway. However so, is this a good PR move? Only time will tell.
I am not a tobacco user and so this announcement didn't actually phase me much. I am undecided on whether or not this is a good move on CVS' part. As several other commenters have observantly pointed out, this move by CVS will have little effect on the actual availability of cigarettes to those who are looking to buy them. I see this move as purely a brand positioning move more than anything else. Having said that, the fact that CVS has made this change will now shift the spotlight to competitors like Walgreens. If Walgreens and other tobacco suppliers come under similar scrutiny then this could snowball into a broader change in tobacco availability. I will be interested to see how the story develops.
I'm not a smoker so this doesn't have an effect on me directly, but I think it's pretty awesome that such a huge company is choosing to quit selling tobacco products. I don't know a lot of people that stop by CVS solely for cigarettes, and as 2% of their profits come from tobacco, this probably won't hurt them much. If anything, I think people reading about how they aren't going to sell tobacco anymore may make them lose more business because some people get pretty upset when they feel their freedoms are being 'taken away.' Overall, though, I think this move by CVS is applaud-worthy and I do hope more businesses follow in their footsteps - it's a shift in a good direction, especially since CVS is a pharmacy and it almost seems redundant for them to profit from the sales of tobacco products. Good for them!
I'm actually really shocked to see that CVS has actually decide to remove all tobacco products. Generally since I don't smoke this does not affect me at all. I would like to know whose initial thought it was to remove the product, whether it was the marketing department or more of the head owners of the company. It will be an interesting outcome to see if the other chains will follow in their footsteps. Though, I do think any removal of "sweets, sugars, or alcohol" removal is a little excessive. If all companies were this way then almost every fast food chain would be shut down, considering they are serving "unhealthy" foods to consumers. It's great that CVS wants a healthier view on their marketing but at the same time, I think it comes down to its consumers choice whether or not they choose to purchase the product that can be harmful to their health.
Overall, I'd say this is a bold move being made by CVS, a huge drugstore chain..while I agree with above comments in that I also envisioned CVS brushing off a two billion dollar loss, when tobacco sales only make about about 2% of their profits. Initially, I even respected that they would take a financial loss to become more health conscious. Although not as big of a loss as I thought, a loss is a loss. While it is a big step towards following their goals of providing health for their customers, I would like to argue what people consider healthy. The article mentions CVS' sale of sweets, alcohol, and soda, what about the prescription medicines being encouraged rather than natural remedies of a holistic approach. Not to mention, the hundreds of brands of cosmetics, lotions, hair treatments, deodorants and other such items they provide...most of which consist of parabens and other harmful ingredients. These ingredients have been more recently tested and proven to disrupt hormone function, which has been linked to cancer and reproductive toxicity. Excuse me for going on a bit of a rant, but my reason for this is to show that CVS and many other chains are marketing themselves as health stores when really the items they are providing could be doing harm than many believe. What CVS has to offer is simply convenience unless they want to make fundamental changes in their business. So they are taking tobacco products out, but how far will they go? If they take out everything that isn't enhancing our health, what would they have left to sell?
I think this is an awesome move by CVS. With tobacco only constituting 2% of sales, I'd like to think that they are legitimately concerned about the overall health of society. However, they will lose customers who purchase tobacco and other items during a single trip to CVS. Out of convenience, I doubt a customer would make a second/special trip to another store for tobacco. From a marketing standpoint, with more people becoming health conscious, this is a great move. It is hard to say if they'll gain any customers because of it though. As for the "Money Trashers" campaign, it's a great utilization of social media with it being so easily accessible to many.
I think CVS phasing out the sale of tobacco products is just the beginning of a movement that will occur in many retailers across the United States. Although it does not affect me as a consumer, I think it is the right move for a pharmacy, even though it will cost them $2 billion in revenue a year. This allows them to be viewed as more of a health clinic and to focus on new opportunities. I can see consumers who support this decision flocking to CVS to support their stance on this issue in order to help them compensate for their lost revenue. Although I predict pharmacies will not be selling tobacco in the near future, I don’t believe that big-box retailers and convenient stores will choose to do the same. After all, someone will still have to sell tobacco products. As for the “Money Trashers” program, I think that sounds like a great idea to create value for customers and to create loyalty with customers.
Kudos to CVS for taking tobacco products out of their stores. This must have been a tough decision based on the estimate of them losing $2 billion in sales. However, I think this may cause a future problem. Now that people see that they are willing to remove products this may raise more request and pressure for CVS to remove other items that could be deemed as unhealthy. Next thing you know they are looking at removing soda, potato chips, and candy. Where does this it all stop? Who draws the line? Once all the “unhealthy” products are gone how much will that cut into CVS’s revenue?
Risky and socially conscience move by CVS. While it's risky it is obvious the CVS has identified a potentially, very profitable market opportunity in providing low cost healthcare options. Today, with my High deductible insurance plan it costs me $100 to go talk to my doctor if I a have ache that I'm not sure about, if it is not a part of my free annual preventive care visit. Therefore, I only really go to the Dr once a year and I wait until I make sure my ache is serious before I go in, which I believe was the opposite effect the ACA was suppose to have, but I digress. I also don't think this move will have that big of an effect on the number of smokers in America. People who want to smoke will just go elsewhere. That is probably why the tobacco companies are not concerned with the potential of other pharmacy following suit. I think the biggest influence to stop smoking will be either the desire of smokers not to die from cancer or the higher costs of insurance premiums.
This is great movement begin by CVS, when I see it looks bad image where patient walk in CVS with doctor perception to get medicine and walk out with medicine and some tobacco products. Everyone know that tobacco is not good for health but still people use it. Its good way to begin, and providing awareness to people who use tobacco product. If this type of chain keep on moving than, it’s sure that it going to have great changes in future days. On matter of business CVS going to loss 2 billion of dollar on its annual income but instead they can add any other products besides tobacco to recover some of its loss. Health comes first and money. I can’t wait who going to be the next to join with CVS decision in order to drag the people attention towards healthy living with out drugs.
This is great movement begin by CVS, when I see it looks bad image where patient walk in CVS with doctor perception to get medicine and walk out with medicine and some tobacco products. Everyone know that tobacco is not good for health but still people use it. Its good way to begin, and providing awareness to people who use tobacco product. If this type of chain keep on moving than, it’s sure that it going to have great changes in future days. On matter of business CVS going to loss 2 billion of dollar on its annual income but instead they can add any other products besides tobacco to recover some of its loss. Health comes first and money. I can’t wait who going to be the next to join with CVS decision in order to drag the people attention towards healthy living with out drugs.
The decision CVS has made to discontinue tobacco sales really validates the company's mission in my opinion. Practicing good ethics despite the huge coming losses in sales revenues sets an encouraging example for all businesses to put ethics before profits.
I applaud CVS's decision as a social move that also happens to be a smart business decision. As a non-smoker, I support individual liberties and personal responsibility. But I am tired of losing friends and family to the awful diseases that accompany smoking, and I wish cigarettes didn't exist. However I don't believe CVS's management made this decision because of any social strategy. It was definitely a financial decision. The CVS and Walgreen's business model depends heavily on making their retail space very productive. In terms of profitability per square foot, tobacco probably is at the low end of the spectrum. According to Crain's, the average profit margin for cigarette retailers is about 15%, and I suspect that the health care services that CVS will focus on will generate more profit than tobacco ever would have.
I think the move for CVS is an interesting decision. I am not quite exactly sure why they think this will be a good marketing decision for them. I think that people look for places like CVS for their tobacco. That should be one of their products for sure. The only thing that would make sense for CVS to make this move so early would be because somehow they would benefit from it. I can't exactly see the big deal for them to make that decision unless they really are just not for tobacco products. The president seems to be backing them up and so is a lot of healthy people in the U.S. I myself do not smoke and am in support of keeping people healthy, but I can see the market for CVS to have tobacco. I am not sure if I really can see the benefits of this decision from a business standpoint.
My instuctor in another class brought this subject up. Its a big topic. I believe this a good move for CVS, were their model is "On the corner of happy ad healthy". The whole world is becoming healthy watching what we put into our bodies. I think this decision will influence other stores to do the same.
I think this is a bad idea overall. By law companys are supposed to make money for their shareholders. You can already see it in the stock market that their stock went down because of this decision. Even though the total sells of tobacco products is small compared to everything else you still are losing money.
I think this is a bold move by CVS, which I feel more "big named" corporations will follow. I feel that any place that aims their business towards ones health can see that this decision is a start in the right direction. I do feel that if they are going to get rid of tobacco products that they should get rid of alcohol as well.
I think this is a bold move by CVS, which I feel more "big named" corporations will follow. I feel that any place that aims their business towards ones health can see that this decision is a start in the right direction. I do feel that if they are going to get rid of tobacco products that they should get rid of alcohol as well.
I'm a smoker. So, you would think I would be opposed to this move. But, I've also tried to quit several times in the past year. I greatly admire CVS' move and I am more likely to shop there. While I think that the loss of billions of dollars is bad for their bottom line in the short-run, this move will greatly increase their positive perception with the public. I usually buy my Nicotine patches at Target, but now I think I will stop by CVS and check out their smoking cessation products.
I agree with CVS that is it a good start, and that it doesn't really look good from a PR position when a drug store is selling products that can worsen health. Drug stores and retailers have always sold tobacco products but just because things have always been that way does not mean that they should continue. Tobacco consumers will always find another place to buy their products but CVS can proudly say that they will no longer contribute to the deterioration of human health at a profit, even it if means giving up $2 Billion. I do not know if others will follow suit and be responsible or try to capitalize on a HUGE amount of dollars that are now trying to decide where to get their tobacco. Health and wellness moves for a company are a great idea because currently the entire country is more health focused that we have in decades. I hope others follow this move, although the cynical side of me says nobody else will. May the force be with you CVS.
This is one of the best PR moves that any company could make. I love the idea and support it 100%. It is great timing on their part also with America growing more and more health Conscious. This is a big step toward reducing the usage of Tobacco products in this country. I know having CVS dropping tobacco products alone doesn't make a major impact on the tobacco industry, but it could lead to other stores following suit. Other companies won't want to have the connotation of being the unhealthy one. Hopefully other companies follow the example set by CVS, and not just pharmacy companies.
I think that CVS' decision to discontinue tobacco products is a good one. Despite the $2 billion loss, I believe that this move will gain the respect of consumers. In the article, CVS thinks of themselves as an "alternative to the doctor's office" and doctor's definitely wouldn't sell tobacco products. Consumers will see CVS as a business that is more dedicated to their health than profits. However, with the implementation of the Affordable Care Act, there is a low growth future of tobacco products. So CVS is probably seeing that the profits will decrease in the future. So by discontinuing tobacco products early, they are staying ahead of the market and portraying themselves as viewing customers' health first. It seems to be a great decision.
This move does not come as a big surprise to me. There have been many anti-smoking moves by a variety of organizations including different healthcare organizations, local governments, and colleges/universities. Since tobacco sales only make up about 3% of CVS sales, this move will make a small dent in their overall sales. The article discusses how the pharmacy chain plans to make that amount back up through increasing different programs that are offered through the pharmacy. I would be curious to see what the tobacco sales for CVS have been over the past ten years. This move is from an area in which sales will probably not increase overtime to a division that has the potential to recover this $2 billion loss.
Removing tobacco from its shelves is a bold move for CVS. While tobacco products make up only about 3% of their overall sales, they make also see a loss in sales of their complementary goods. This seems like a small price to pay for being recognized by Americans and the President as an ethically sound, forward thinking company.
I used to love CVS because of their customer loyalty program. After several bad experiences with their pharmacists, I left to go to Walgreens. I decided to give CVS another try when I moved to KC and my faith in CVS has been restored. Perhaps this move will restore the faith of other customers.
CVS has a smart plan to help their revenue increase. They were brave to be the first among pharmacies to remove tobacco products from the shelves. It has started the conversation and I look forward to seeing how the other large pharmacies react.
CVS is discontinuing one service to improve its overall product. By positioning itself as a clinic, it can collect on millions of new customers who have insurance for the first time. By eliminating a known carcinogen, it can promote itself as a preventive care clinic. Insurance agencies give discounts to healthy lifestyles choices, like quitting smoking, opening a new product line for the retailer. CVS can work with insurance companies to become a preferred in network clinic bringing in more customers.
I'd say this move by CVS will put the pressure on Walgreens to do the same since Walgreens promotes that they are "at the corner of happy and healthy." Even though shareholders are obviously unhappy right now with CVS dropping toboacco products, I'm sure they'll rebound with their move to expand their miniclinics and wellness programs. Especially, since a survey mentioned in my management class showed a large percentage of customers were more apt to buy from comapnies that are viewed as being socially responsible.
I'm more interested in the "macro" marketing angle of this. CVS is free to pursue profits in any way it sees fit. But the mention of other "unhealthy" items is what concerns me. "The dose makes the poison" - I love Snickers bars, but they are not unhealthy for me because I eat perhaps one a week, and exercise and consume a balanced diet. Some groups will use this as a springboard to push for the removal of anything that's not free-range, ethically-harvested, stakeholder-conscious nuts and berries.
I think that's its a great idea that a health and wellness store is deciding to remove a very unhealthy item from there shelves. Honestly the people who buy cigarettes are most often patients of the pharmacy as it is. I used to work at CVS as a pharmacy technician and have noticed that some patients health conditions can be traced to poor health habits like smoking. So why not make it more difficult, or least more of a hassle to succumb to these poor habits that make them return for more medication. Morraly I think that CVS is in the right however they may lose some patients or money to Hy-Vee pharmacy or Walgreen's who still carry tobacco products.
I always thought it was a bit hypocritical for a pharmacy chain to be selling tobacco products. Unlike certain alcohol products (see red wine) and marijuana (see medical marijuana), there has never been evidence of any health benefits associated with using tobacco products. Couple that with the fact that big tobacco execs perjured themselves in front of Congress in the early 90s regarding the addictive nature of nicotine and that pretty much every health care plan charges tobacco users fees on top of their premiums, and you have a class of product that has fallen from grace pretty precipitously.
CVS' social media marketing strategies seem to be working and allowing them to connect with the public and generate sales. Not selling tobacco products is one more thing they can brag about on social media and promote their image as a pharmacy/health conscious store.
According to this page:
http://www.drsforamerica.org/blog/kill-tobacco-save-1-trillion
$96B of taxpayers' money is put towards the treatment of tobacco-related illnesses per year. CVS could say that they are taking a $2B hit to try to make this number a bit smaller and gain favor with a lot of people and organizations, including the American Cancer Society, which might eventually gain the funding and lobbying power to eat away at big tobacco's position significantly.
This was a bold move by CVS. It makes me wonder if CVS will be able to make up for its loss in revenue in another way. Perhaps this change will cause some regular customers at Walgreens to change their preference to CVS.
This is an interesting move to help position the brand as a health care organization rather than a retail drug store. It goes along with its strong CVS Caremark brand and will act a great differentiator. I sent the article to my friend who works for Walgreens and he said there is no way Walgreens will ever make a similar move in the near future.
I wonder how this decision will effect the company's image in the eyes of tobacco using customers. It is impossible to ignore this huge sector of the market, and those who choose to use tobacco may likely be offended by this move. They may feel as though CVS isn't open to their choices, and they might be inconvenienced enough to shop elsewhere. While 3% of sales from tobacco isn't much to lose, I think it is possible that CVS will see an even greater decline because tobacco using customers will not only stop buying tobacco, but all of the other products they once purchased at CVS. This will not be the case for all, but I think it is a relevant concern for at least a portion of tobacco users.
I love that a company is setting aside the monetary gain of tobacco products for their values. I'm hoping that they set a trend for more and more businesses to take a stand on products like this. They may be giving up a lot of revenue, but they could easily gain some if not most of it back in increased business. It's a smart marketing move, with society increasingly becoming adverse to tobacco products.
I am proud of CVS for making this decision. I hope that it pays off for them in the long run and that they can gain new customers who will support CVS even more now that the company has shown that they care for individuals' well-beings. I think CVS made a great point when they mentioned that they are a health company and should do what they can to improve people's health. I also love the fact that they mentioned the Affordable Care Act which makes it even more vital that Americans do what they can to stay healthy and not impose unnecessary health care costs. It was a risky decision for CVS, and I am sure some tobacco users may be quite angry over their decision, but just as it is everyone's own decision to chew tobacco, it is every company's decision to decide what to sell and what is best for its customers.
I think this was a good business decision by CVS. Although the health of their customers could have been an influencing factor, I think the financial benefits are what really drove the decision. If CVS is trying to position itself as a center of health and care, then it makes sense for them to stop selling tobacco products. And, by being the first to make this change, "the company has received publicity that no money can buy." Very smart.
Some people commented about how we have the right to make our own choices (to smoke or not smoke) and it shouldn't be up to CVS to decide for us. I agree, but at the same time CVS has the right to make its own choices too, and to sell (or not sell) whatever it wants.
I think this is a very risky and smart business move by CVS. The tobacco sales only make up 3% of CVS's sales revenue, so its not as if they are missing a lot from changing their policy. I believe it will show their consumers that they really are working for the betterment of health for their customers.
CVS is making a big statement with their recent anti-smoking move. Many people are scared that the stock value of the shareholders will be effected by the ban. The value of the company may dip in reaction to the recent move, but ultimately I think CVS will strive for the new healthily outlook they are making. It looks like walgreens "The corner of happy and healthy" might have to take some notes!
I think that its a good look for CVS to stop selling tobacco products. It shows that CVS actually cares about individuals health and wellness. Not only is this act helping save lives, its also cutting back cost for CVS. This gives CVS a chance to attract more customers and better their pharmacy and clinics.This move also opens up opportunity for other stores to follow their footsteps.
I love hearing this news! It only makes sense that a place that is known for helping people feel better not sell tobacco products. It shows social responsibility on their part. I hope this helps boost their image and they more than make up for the loss of sales from tobacco. I work at a grocery store, and I absolutely dislike selling tobacco products to people. Tobacco products don't just effect the users but also everyone around them. I hope more companies follow CVS in this matter.
I think it will be very interesting to see how this move will play out over the next few years for CVS. Their whole "health" reasoning makes sense, and I'm not questioning that it's not a legitimate motive for them, but I do feel that a big part of it is PR. By being able to say that they were willing to sacrifice a portion of their sales for the benefit of their customers, it can make them look better in the eyes of the public. All the while, it can put the pressure on Walgreen's to do the same, if they see it being beneficial for CVS.
CVS has made a pretty smart marketing move by banning sales of cigarettes in their stores. When we first heard the story on npr, my wife and I were talking about all her friends who smoke who purchase their cigs at CVS or other drug stores. With this move, CVS may force other retail drug stores to follow suit, or potentially lose customers who feel this is a big deal to them - people stuck waiting in line while someone purchases a pack of smokes, etc. And by being the first out there, they can claim that they led the charge for a healthier America. Something that will most likely show up in advertising before too long. With smoking rates dropping dramatically, the revenue risk of such a move will most likely be small, and the potential gains from such a "positive" view by non-smokers could be huge.
Seeing that a healthier lifestyle in America is the new trend, I can see why CVS decided to make this bold, new decision. Initially, when I first heard about this decision I thought, wow that is a horrible move, but after reading the article, I have a new aspect and respect this decision. Such a huge loss could seem alarming, but actually I think CVS will be just fine. Considering it is a "health and wellness" type of store, CVS will be fine
I think that, for CVS, this is a good move. Cigarette popularity has been steadily dying in today's modern society due to health reforms like the ones in this article. However, the whole bias that alcohol is socially acceptable and cigarettes aren't is confusing to me. They are both awful for you. Alcohol makes people reckless and irresponsible, yet it can be advertised on the nation's single biggest television event multiple times. Cigarettes can't be advertised on TV at all. I also don't see CVS as a health store so much as a convenience store. All in all, I don't know if the loss in profits from cigarettes will be counteracted by the benefits of a more positive company public image.
I think its a smart decision to stop selling tobacco at CVS because it is a pharmacy and they should be promoting healthy living. Plus tobacco was already more expensive at CVS so they were losing money by having that as a product because not many people buy their cigarettes there in general. I think this will be a more profitable change of course.
The article says that CVS will lose about 2 billion a year in sales due to cigarettes. Less than twenty percent of adult Americans smoke cigarettes. Cigarettes are available in a number of places, so it will not be difficult for smokers to conveniently go elsewhere. I would assume that CVS will retain most of its customers that bought cigarettes at their stores, because of the other things they offer.
Those that don’t smoke don’t seem to be indifferent on the matter. They have voted to keep smoking outside, and now institutions including UMKC have decided to become smoke free, even outside. I believe that CVS will gain business from people who dislike smoking. It has made news on almost every major outlet, and the president has commended the decision. It was a substantial amount of free advertising.
I think it was a very smart move given the nation trend of better ones health. I also believe that CVS knows that one of the new services, or products they will have will supplement the income they lost from cigarettes.
I am in total support of CVS, especially because they are making a decision to support a healthy lifestyle in exchange for a loss of $2 billion in sales. If CVS wants to develop it's brand to be one of health and well-being, they had to get rid of their tobacco products. The reporter mentioned that the store will continue to sell sweets, sodas, and junk food; obviously, these do not support a healthy lifestyle, but they aren't drugs. I don't think it can be expected that drug stores will take these items off the shelf any time soon. They probably make up a good portion of non-drug sales. I'm assuming CVS's decision may upset some tobacco-purchasing customers, but there is no shortage of tobacco products elsewhere.
I find this move by CVS to be really interesting and smart. As a health and wellness store, it just makes sense to not sell one of the most unhealthy products out there. Even without knowing that tobacco sales only make up about 2% of their profits, I kind of figured it wouldn't affect their profits too terribly anyways.
Also, Morgan Stanley's comment about how CVS' and future followers' moves will not affect the tobacco industry made me laugh. I find that really hard to believe because that's part of the reason why CVS decided to quit selling tobacco in the first place: to reduce the use of it in American households. Stanley's comment reminded me of someone who is being broken up with's last attempt to keep their pride by brushing it off as not a big deal. Although I don't believe it will be completely detrimental to the tobacco industry immediately as a direct result of CVS, I do believe that within a few years the tobacco industry will be struggling to survive in a society that is becoming more and more concerned with health.
I definitely think it was a bold move for CVS to decide to phase out, and stop selling, tobacco products by October of this year. I respect them for making that choice, even though it might not be a popular one and they will lose money by doing so. It seems like a lot of companies are going smoke-free in today's society because they are realizing the dangers of first- and second-hand cigarette smoke. I'm sure CVS will receive a lot of flack from their loyal customers (who buy tobacco products), but I'm in favor of the decision they made.
I think this is a smart move for CVS in the longrun. It is making them look good in the aspect of not selling tobacco, but they could be over looking something very important. Older People need subscriptions. Older people tend to still smoke. Although its a small majority, is it big enough that it will hurt CVS bottom line because older people are moving the scripts to walgreens because they can buy smokes and medication for medical problems that may or may not have been caused by smoking. In conclusion, I believe CVS is taking a risky decision, but I do believe in the long run it will all work out.
I think this is a good move for CVS as far as taking on the health focused market, but this doesn't mean that this was an overall good decision. I am not a cigarette smoker, but I do smoke cigars and a pipe. The removal of their tobacco products and the losses that they will take I believe is a foolish decision as far as a business goes. Loosing billions of dollars and tons of customers to potentially gain a few new customers will not make up the difference lost. Unless CVS completely rethinks and makes larger changes to how they function the motive of the company becomes unclear to me. They are going for health but will continue to sell alcohol, junk food, snacks, and many other items that are detrimental to health. This sends me as a consumer a mixed message of maybe taking a step in the right direction, but only taking a small step that I think will hurt their sales and overall business. Removing tobacco is one thing but converting into a healthier version of a drug/ convenience store is a whole different idea that CVS has not accomplished by simply taking out tobacco.
As many have said, I think this is an excellent move for CVS, as they look to provide greater focus on the healthcare side of their business. Even though removing the sale of tobacco from their stores will cost them $2B/year, this may give them a substantial boost in the perceptions of the public as a more "health conscious" company. It shouldn't be difficult to persuade consumers that a business that is based around a pharmacy shouldn't sell tobacco; you certainly don't see hospitals selling it to their patients!
I was very excited to see CVS initiative to eliminate tobacco products from its shelves. I am originally from Brazil where pharmacies can only sell medicine and personal hygiene items. I was surprised to see that in the U.S. pharmacies were able to sell tobacco, alcohol and a vast variety of food items. In my opinion, pharmacies should be primarily a place to promote health. Selling tobacco and alcohol is definitely contradictory. This this a good strategy for CVS and the next step should be to stop the sale of alcohol.
I felt that CVS is also evoking the heart of sharing that people have, when we see something good, automatically we will want to share it with others and Social Media enable us to do so right away. Money Trashers is like a campaign where people become aware of money that they can save and will automatically share it with friends and family.
Furthermore, with CVS deciding not to sell any tabacco products help them to promote themselves better as a pharmacy that provides healthcare products. Their decision also helped to set them apart from other pharmacies like Walgreens and has given CVS alot of exposure through the press.
This move by CVS is one that makes marketing sense at this time. If CVS sees its future as a health care provider of not only pharmeceutical services but also primary care through the mini clinics then selling cigarettes in the same store you see a doctor who tells you to stop smoking is a good marketing strategy. Cigarette sales have also decreased over the past ten years and are anticipated to continue to decrease. It will be interesting to see if not only other similar retailers stop selling cigarettes but if CVS stops selling liquor, soft drinks, and sugary foods which are all seen as unhealthy.
This decision is pretty unprecedented as far as how it might affect the tobacco and pharmacy industry. It actually amazes me how such a large initiative became a reality. When people hear "$2 billion loss" it can ofter scare them away, but I think this decision could actually increase sales as customers develop a more favorable attitude towards CVS's brand. Even here at UMKC we have just passed a no-tobacco policy that will come into effect in August, and a number of universities have already done the same. I can see this movement continuing in the future, and CVS is leading the way.
I think that this is a really good move for CVS. The country is in part moving towards being a healthier nation, it is taking time. Most people go to a drug store to get medicine or things to make you better, healthy, snacks, other products. I think it is great that CVS is wanting to redeem the image that a drug store is place where you go to get better and not buy things that will harm you. Since the country is wanting to move in a healthier direction this may be a great start to a new market going the healthier way. Since they will not be selling tobacco products anymore it opens room up in their stores for new products, different products. There are still plenty of other places people buy tobacco products. I believe people do it mostly at gas stations, so it could be a change that in the long run won't have much of an effect except a positive one.
I think that CVS is in the right by banning tobacco products from its stores. The company's main mission is to provide "healthy and happy" solutions to its customers, and selling cigarettes isn't necessarily a path to that goal.
On the other note raised at the end of the video of whether the company should stop selling other potentially harmful products such as sweets, soda, and liquor, I don't agree that the company should ban these things. While there is research connecting all of these products with potentially unhealthy side-effects, the effects of sweets, soda, and liquor in moderation are usually minimal. However, I would say that smoking "in moderation" is still dangerous and harmful to a person's health. It's a matter of educating the public on diet and moderation that makes the other products a potential health concern, but that's no reason to ban the products.
If CVS continues in the direction they are headed with the "health and wellness" image, this change was inevitable. From a business point of view, t's kind of hard to explain to doctors, and other medical institutions, that CVS is endorsing health when they are still offering tobacco products. Being that CVS and Walgreens are probably seen as basically the same in the eyes of the average consumer, I think this move is a smart way for CVS to differentiate themselves. Perhaps they can steal marketshare from Walgreens by attracting their more "health conscious" costumers.
I defintely admire CVS' decision to lay off on the tobacco. Those commercials of smokers with a hole in their throat is so scary. CVS has stepped up their game with these extra bucks incentives they have. I have saved up to 7 dollars before and of course I love it! I do however think they should work on telling people when it's check out time that they do indeed have extra bucks, just because not everyone looks at their tickets. Other than that it's perfect!
First of all, CVS is raising the bar for other pharmaceutical companies. It only makes sense that a drug store would not sell tobacco products. It is bizarre that we are just not thinking in this frame of mind. I expect other large retailers to follow in this movement. Next, I think that they are doing a great job with their social media push on savings. Customers love to "share" with their friends that they are a savvy shopper. Contests is a great way to increase online followers and they are moving in the right direction with their marketing strategy.
With a “change in product strategy,” I must say this is definitely a change. CVS is losing not only 2 billion dollars in the sales of cigarettes, but also sales on any other products that those consumers would have bought coming into the store on that occasion. Now moving their focus on to becoming a health and wellness company, I do, however, find it different that they will still have isles of beer, whiskey, wine, and tequila, and right by the counter for our children, piles of candy full of fats and sugars; all of the healthy stuff! My family has gotten our prescriptions filled at CVS, as well as some house-hold items and some last minute grocery items before, but I have not ever considered CVS to be a place of health and wellness; just a “convenient” store with a pharmacy way in the back.
I think this is a really smart move that makes CVS look really good to the general public. Like the article said this was a trend that seemed bound to happen and CVS just got in front of it. I do believe that this could have the potential to cause problems for CVS in the future. People might start expecting CVS to get rid of other unhealthy items in their store. Some people mentioned things like chips, soda, alcohol all being unhealthy too. This isn't just about them not selling tobacco, they are making a big statement of what kind of store they are and what products they are going to offer. I just hope they are prepared to stand behind it.
I tend to agree with Blair Jones - I view CVS and Wallgreens as convenience stores, not health and wellness stores. I also agree with others that the direct loss in cigarette sales may not result in as large an impact as all of the other items a person may pick up while in the store to buy cigarettes. This is an interesting issue as CVS saw they had an ethical dilemma selling cigarettes to the public, however, as a publicly traded company, CVS also has responsibility to its shareholders. It remains to be seen if this is a move in the right direction to satisfy both parties.
CVS's decision is part of their changing marketing position. Before they were just a corner drugstore now they are following the healthy trend and moving towards having a more upscale, healthy image. If they are going to start having mini health clinics in their stores I think its the right way to go.
I think that's a good move because people will see CVS is all about improving health. It means CVS will gain positive views from customers who are looking for a trusted brand to buy their medicine.
I think that this is a really great move by CVS. I like that they are trying to help people even though it will lose them a considerable amount of money. They are really hoping that this will also boost their customer satisfaction a significant amount in order to make up some of that lose. Overall I think that this is an admirable move by CVS and I hope they have success in this decision.
I think that this is a really great move by CVS. I like that they are trying to help people even though it will lose them a considerable amount of money. They are really hoping that this will also boost their customer satisfaction a significant amount in order to make up some of that lose. Overall I think that this is an admirable move by CVS and I hope they have success in this decision.
While I don't smoke, I am shocked that CVS is making this move. Even though it is only cutting out about 2% of CVS's profits, it will be interesting to see if other sales departments drop. I think this move could go either way, CVS could get a lot of support or it could blow up.
That's pretty crazy CVS will no longer sell tobacco. I am not a smoker myself, but I would think that they would want to sell whatever the customers want. I suppose however they are so well established they have more power to control their positioning and take the loses. I believe some people will support them, just as many commenters on this blog post have and may shop at CVS more frequently because now they feel that CVS relates to them and understands their values. However there are still a good portion of the population that like to pick up a pack of smokes and now will be turned away from CVS since it eliminates that convenience for them. I am interested to see their positioning will relate to medical marijuana and the legalization of marijuana.
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