An evaluation of CVS’s motives in banning of cigarette sales
http://keene-eq
uinox.com/2014/02/an-evaluation-of-cvss-motives-in-banning-of-cigarette-sales/
From the article:
On the CVS website, it states there are currently more than 800 clinics in 28 states and based on Stephanie Strom’s article for the New York Times, CVS hopes to add 700 more clinics by 2017. According to Business Insider, these clinics have partnerships with insurance companies as well as hospital systems from which they profit; therefore they must follow the appropriate principles of a health care provider, thus the reason for the ban on cigarettes.
Not only will they make money from the clinics, but just their announcement of the cigarette ban has allowed CVS to get an unbelievable amount of free press—and good press, at that. There are countless articles regarding CVS’s decision, including this one, allowing the news to essentially go viral. CVS is gaining an unbelievably good reputation from all of the press and is becoming the pioneer of a cigarette-free pharmacy: all part of their strategic, well thought-out and intelligent plan that will most likely pay off in the coming years
according to Shirley Leung of The Boston Globe, more than 60 percent of cigarette sales occur – at gas stations – compared to the 3.6 percent at drug stores.
And you thought that CVS cared about the overall health of our society.. It would appear that CVS’ concern is more about the overall health of their bottom line ..
Filed under: General Problems
There will be a barely detectable blip in profits for this low margin, high theft, non-destination item. What I would prefer is that employees be treated with respect and decency. When that happens, I will be the first to stand up and cheer.
Would you prefer that cvs continue to sell cigarettes? Business or health, it is a good decision for pharmacy. It would have been stupid to not spin this in their favor.