The Strategy Behind CVS's No-Smoking Campaign
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CVS is kicking its cigarette habit, stubbing out a rich and addictive source of revenue in hopes of finding healthier returns elsewhere. The company announced that it would stop selling all tobacco products in all its 7,600 or so stores by October, saying the products conflict with its goal of helping people stay healthy. It won’t even sell e-cigarettes, which are purported to be less harmful than traditional smokes.
“Put simply, the sale of tobacco products is inconsistent with our purpose,” CVS Chief Executive Larry Merlo said in a statement. By the company’s estimate, the decision to drop tobacco means it will forgo about $2 billion in annual revenue, around 1.5 percent of total sales.