This seems like it could be a MASSIVE blow to the tobacco industry.
CVS announced yesterday that they're going to stop selling cigarettes and all other tobacco products by October 1st, at all 7,600 of their stores. That makes them the first major drug store chain to ban tobacco sales.
And it'll cost them approximately $2 billion a year in lost sales. Even though their revenues are around $125 billion, that's still significant. So their decision has drawn praise from health officials, and even PRESIDENT OBAMA.
Naturally, the Internet's first instinct was CVS must have a plan to make even MORE money doing this . . . since we know all corporations are out for evil right? And blog on the "Washington Post" has a theory . . .
CVS is positioning itself as the pharmacy chain that ACTUALLY cares about your health. They've already been making a ton of money by transitioning into light health care services, with "MinuteClinics" at several locations.
By dropping cigarettes, CVS's chief medical officer says it will make it easier to make more deals with health plans to provide primary care medical services . . . and deals with hospitals to handle urgent care patients on nights and weekends.
And those deals will be worth FAR more than the $2 billion they lose in tobacco sales. (Washington Post)