CVS will take an annual hit of $2 billion in revenue due to its decision, a sizable sum that amounts to just 1.6 percent of the company’s $125 billion average yearly haul.
However, they will free up space behind the counter where the tobacco products are stored. So CVS will be able to sell other products in a good location in their stores.
The company declined to say what will take tobacco’s prominent shelf place behind cash registers at the front of its stores. CVS Caremark will test some items and may expand smoking cessation products that are already sold near cigarettes. Its drugstores do not sell electronic cigarettes, devices that heat a liquid nicotine solution and create a water vapor that users inhale.
CVS Caremark leaders say removing tobacco will help them grow the company’s business of working with doctors, hospitals and other care providers to improve customers’ health.
CVS is getting a lot of positive publicity and praise from President Obama and others.
Brian Wang is a Futurist Thought Leader and a popular Science blogger with 1 million readers per month. His blog Nextbigfuture.com is ranked #1 Science News Blog. It covers many disruptive technology and trends including Space, Robotics, Artificial Intelligence, Medicine, Anti-aging Biotechnology, and Nanotechnology.
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