On February 5, 2014, CVS, the second largest drugstore chain, announced that it will discontinue selling tobacco products by October 1, 2014. This involved slowly removing cigarettes, cigars, and chew throughout this time frame. The projected loss of sales totals 2 billion dollars!
This story made my heart so happy! Reading these stories each week has made me very cognizant of the importance of social and corporate responsibility. It is unfortunate but true, that news we hear is often negative. President Larry Merlo says “the sale of tobacco products is inconsistent with our purpose – helping people on their path to better health (CVS, 2014). The company also officially renamed itself “CVS Health.” Although this financial loss is quite significant, it is a step to better our society and finally a step in the right direction of holding companies accountable to higher standards. In recent years, markets products to families. Tobacco products have no place in bettering family health or well-being.
Additionally, this positions CVS to emerge in the health care industry with a glowing visibility, which potentially could increase partnerships and introduce new health products to be sold in their stores.
Furthermore, CVS is helping smokers quit. It was announced by Larry Merlo in his press release that a campaign will be launched in spring to aid smokers in quitting.
What I am interested in, is if you believe competitors will gain or loose by the immediate effects of removing tobacco products. I would also like your opinion on whether or not other chains that promotes wellness, such as Walgreens, should have the corporate responsibility to make the same choices that CVS has made.
http://www.cvshealth.com/research-insights/health-topics/this-is-the-right-thing-to-do
http://www.cvshealth.com/research-insights/health-topics/this-is-the-right-thing-to-do
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