(PCM) CVS Caremark has just revealed plans to begin phasing out the sale of tobacco products from their nearly 7,600 stores across the country.
The company reveals that the phase out ,which will include cigarettes, cigars, and chewing tobacco, will cost the company about $2 billion dollars in revenue, but should have very little effect on their earnings for 2014. The entire phase out should be completed by the target date of Oct 1st, 2014.
It is thought that by CVS Caremark phasing out the sale of tobacco products they will then in turn enhance their relationships with doctors, hospitals, and other health care providers as they are then all working together to improve customers overall health.
CVS Caremark CEO Larry Merlo had the following statement: “We’ve come to the conclusion that cigarettes have no place in a setting where health care is being delivered”.
The drug store chain has been in the process of adding health clinics to their stores and their focus on health care has been stronger and stronger every year. The company still plans to sell smoking cessation products and may think about expanding that section of the store to include more items.
Once the news about CVS Caremark’s plans to stop selling tobacco products was unveiled, the Huffington Post requested comments from the chains biggest competitor, Walgreens.
Walgreens claim they have no plans to stop selling tobacco products and released the following statement:
We have been evaluating this product category for some time to balance the choices our customers expect from us, with their ongoing health needs. We will continue to evaluate the choice of products our customers want, while also helping to educate them and providing smoking cessation products and alternatives that help to reduce the demand for tobacco
