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CVS stops selling cigs... sales of other stuff tumbles
Posted on 8/4/15 at 5:11 pm
Posted on 8/4/15 at 5:11 pm
quote:
While prescription sales continue to rise, general merchandise sales tumbled nearly 8% last quarter on a same-store basis.
CVS blamed the slump on the tobacco ban. The company said front-store sales would have been flat compared with the year before if they didn't make the change.
Conlumino analyst Stephen Ward believes that while the smoke ban was a "sensible move" for CVS's brand, it has come at a cost. "It has most certainly affected sales both directly, and indirectly, through the reduction in impulse purchases that tobacco customers made," Ward wrote in a report.
The cost of being a good example
21
Posted on 8/4/15 at 5:13 pm to TejasHorn
Waffle House is a ghost town...
Posted on 8/4/15 at 5:16 pm to TejasHorn
No business EVER does something to be a good example--especially one that is publically traded and owned by shareholders...it's all about profits.They thought that this move would cause many people to move to them on the principle, and banked on more script fills, but someone forgot to really analyze the other negatives that not selling tobacco would have.
This post was edited on 8/4/15 at 5:17 pm
Posted on 8/4/15 at 5:17 pm to MarlinMan
So much for all the advertising they put into it.
Posted on 8/4/15 at 5:18 pm to Marco Esquandolas
what's weird is most CVS's look like a 1970's piggly wiggly. It's where you'd picture someone going to specially buy smokes. 
Posted on 8/4/15 at 5:19 pm to TejasHorn
I own Rite Aid. They don't give a shite about customer's health 
Posted on 8/4/15 at 5:19 pm to Marco Esquandolas
Foolish move.
When you have the second-best locations already, you shouldn't be doing anything that cuts customer traffic. The CEO should be terminated.
When you have the second-best locations already, you shouldn't be doing anything that cuts customer traffic. The CEO should be terminated.
Posted on 8/4/15 at 5:20 pm to TejasHorn
That makes no sense. Cvs is a business. Why would they want to shoot themselves in the foot like that?
Not just the cig sales but people that come there for that I'm sure buy other stuff too.
Not just the cig sales but people that come there for that I'm sure buy other stuff too.
Posted on 8/4/15 at 5:20 pm to Marco Esquandolas
Not to mention that where there is a CVS a Walgreen's or Rite Aid is only a stones throw away. If the retail space was designed for the product and not selling it merely eliminates ones chance at that sale plus any "impulse purchases" that increase atv, then someone needs to lose their job. I'm guessing Rite Aid and Walgreen's flat lined over last year?
2nd Quarter Earnings
Walgreen's: 18.5% increase vs same quarter ly
Rite Aid: 4.5% increase vs same quarter ly
CVS: 2% increase vs same quarter ly
2nd Quarter Earnings
Walgreen's: 18.5% increase vs same quarter ly
Rite Aid: 4.5% increase vs same quarter ly
CVS: 2% increase vs same quarter ly
This post was edited on 8/4/15 at 5:25 pm
Posted on 8/4/15 at 5:25 pm to TejasHorn
For what is worth, they probably lost a lot less in Baltimore than they would have if they still sold ciggarettes.
Posted on 8/4/15 at 5:29 pm to TejasHorn
I thought about what a bold move that was when the stores in Nola stopped about a year ago. That's a huge chunk of profit to just axe
Posted on 8/4/15 at 5:30 pm to TejasHorn
Posted on 8/4/15 at 5:33 pm to TejasHorn
quote:
sales of other stuff tumbles
Probably only cool stuff, cause smokers are cool.
Posted on 8/4/15 at 5:39 pm to Marco Esquandolas
quote:
No business EVER does something to be a good example--especially one that is publically traded and owned by shareholders...it's all about profits.They thought that this move would cause many people to move to them on the principle, and banked on more script fills, but someone forgot to really analyze the other negatives that not selling tobacco would have.
They didn't quit selling cigarettes for any other reason then they had to. There's a law that goes into affect shortly that bans the sale of cigarettes at pharmacies.
Posted on 8/4/15 at 5:46 pm to lsu13lsu
Posted on 8/4/15 at 5:46 pm to TejasHorn
quote:
The fact CVS is hurting a bit from its tobacco ban is not shocking. When CVS first announced the move in February 2014, it warned sales could take a $2 billion hit. That's just a fraction of the $139 billion in annual sales CVS generates, but it's not nothing.
Seems like this was anticipated.
Posted on 8/4/15 at 5:47 pm to TejasHorn
cigs and beer. no one is making 2 stops on the way home for both.
Posted on 8/4/15 at 5:49 pm to crimsonsaint
So why make the move early and lose out on profit?
Posted on 8/4/15 at 5:51 pm to vjp819
quote:
cigs and beer. no one is making 2 stops on the way home for both.
Can't you get that at the gas station though? I always thought people buying cigarettes and beer at a drugstore was weird.
Posted on 8/4/15 at 6:14 pm to Ed Osteen
quote:
So why make the move early and lose out on profit?
They look like a leader by going first when everyone is forced to follow.
Also, their parent company is about to funnel a ton of business that way when they change up the insurance.
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