publication date: Feb. 7, 2014
CVS Caremark plans to stop selling cigarettes and other tobacco products at more than 7,600 CVS/pharmacy stores by Oct. 1.
The country’s largest drug store chain in overall sales estimated that it will forego approximately $2 billion—about 17 cents per share—in revenues on an annual basis from snuffing out Big T.
“Given the anticipated timing for implementation of this change, the impact to 2014 earnings per share is expected to be in the range of 6 to 9 cents per share,” the company said in a statement Feb. 5. “The decision to exit the tobacco category does not affect the company’s 2014 segment operating profit guidance, 2014 EPS guidance, or the company’s 5-year financial projections provided at its Dec. 18 Analyst Day.”
The decision makes CVS the first national drug store chain to stop selling tobacco products. The Target Corporation made a similar decision regarding their retail chain in 1993.
“Ending the sale of cigarettes and tobacco products at CVS/pharmacy is the right thing for us to do for our customers and our company to help people on their path to better health,” CVS Caremark President and CEO Larry Merlo said in a statement. “Put simply, the sale of tobacco products is inconsistent with our purpose.”
In addition to removing tobacco products, the company will undertake a national smoking cessation program. Smoking is the leading cause of premature disease and death in the U.S. with more than 480,000 deaths annually. Some 18 percent of Americans smoke, down from 42 percent in 1965.
“CVS Caremark is continually looking for ways to promote health and reduce the burden of disease,” … Continue reading 40-06 CVS and Tobacco
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