CVS to discontinue tobacco sales

[ChumpChange]

Since when is 2 Billion "not much"?

For the nine months ending 9/30/2013, CVS Caremark was at $32 Billion in sales with Gross Profit of just over $6 Billion. I'm saying that the $2 Billion in Gross off the cigarettes probably nets them a few million off that product which is minuscule compared to the overall profit margin of the company. They may be a loss leader for other higher margined products but only time will tell. This is when $2 Billion is "not much"......when it's viewed in the entire picture of this company.

Edit: Those numbers were for three months. For the nine months ending 9/30, they are at $93 Billion in sales with $17.5 Billion in Gross Profit. The $2Billion is less than 2% of their gross sales.

[RPB]

For the nine months ending 9/30/2013, CVS Caremark was at $32 Billion in sales with Gross Profit of just over $6 Billion. I'm saying that the $2 Billion in Gross off the cigarettes probably nets them a few million off that product which is minuscule compared to the overall profit margin of the company. They may be a loss leader for other higher margined products but only time will tell. This is when $2 Billion is "not much"......when it's viewed in the entire picture of this company.

Edit: Those numbers were for three months. For the nine months ending 9/30, they are at $93 Billion in sales with $17.5 Billion in Gross Profit. The $2Billion is less than 2% of their gross sales.

You seem to be co-mingling economics with politics or at the least economics with "political correctness". Alcohol costs society more in terms of health, safety and social costs than cigarettes...yet they did not stop selling alcohol. I think the real story is that by not selling that 2 Billion worth of FDA approved smokes the children will suffer as each state affected will recieve fewer education dollars in relation to the tax collected.

Conclusion: CVS hates kids and wants them to be stupid.

[ChumpChange]

I haven't brought up politics one bit. I'm talking pure profitability to CVS. What happens after the purchase I can care less about and have not even brought up in this conversation. Alcohol has a huge profit margin so why would they stop selling something that affects their bottom line. As stated, Cigs have a LOW profit margin! The goal in business is to have a Hight Profit Margin hence the decision to rid themselves of tobacco. If CVS wants to pass that on as social responsibility, then that's their call but in reality, they're probably not making enough money off them.

[RPB]

I haven't brought up politics one bit. I'm talking pure profitability to CVS. What happens after the purchase I can care less about and have not even brought up in this conversation. Alcohol has a huge profit margin so why would they stop selling something that affects their bottom line. As stated, Cigs have a LOW profit margin! The goal in business is to have a Hight Profit Margin hence the decision to rid themselves of tobacco. If CVS wants to pass that on as social responsibility, then that's their call but in reality, they're probably not making enough money off them.

Please provide the comparative data of alcohol vs. cigarette profit margin.

Candy, chapstick, bubblegum also have a low margin....yet they continue to stock it. Lots of products have inherent low margins (gas at the pump...pennies per gallon sold), however collectively as part of a broadspectrum offering the hedge pays. Intentionally cutting 6+% of annual revenue does not seem to be trivial.

You should have brought up politics.....it (your analysis) would have made more sense.

[WESTERNAERO]

You seem to be co-mingling economics with politics or at the least economics with "political correctness". Alcohol costs society more in terms of health, safety and social costs than cigarettes...yet they did not stop selling alcohol. I think the real story is that by not selling that 2 Billion worth of FDA approved smokes the children will suffer as each state affected will recieve fewer education dollars in relation to the tax collected.

Conclusion: CVS hates kids and wants them to be stupid.

...

[Eli]

You seem to be co-mingling economics with politics or at the least economics with "political correctness". Alcohol costs society more in terms of health, safety and social costs than cigarettes...yet they did not stop selling alcohol. I think the real story is that by not selling that 2 Billion worth of FDA approved smokes the children will suffer as each state affected will recieve fewer education dollars in relation to the tax collected.

Conclusion: CVS hates kids and wants them to be stupid.

It's simple

Cigarettes make people ugly. The more you smoke the less attractive you become.

Alcohol makes people look fantastic. The more you drink the better looking everyone becomes.



Sent from my Bat Cave

[WESTERNAERO]

It's simple

Cigarettes make people ugly. The more you smoke the less attractive you become.

Alcohol makes people look fantastic. The more you drink the better looking everyone becomes.



Sent from my Bat Cave

And this is a fact? Or just another opinion?

[Eli]

And this is a fact? Or just another opinion?

It may be completely inaccurate. I had a lot to drink on the yacht and it did nothing to improve your looks


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[McRib]

It may be completely inaccurate. I had a lot to drink on the yacht and it did nothing to improve your looks


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And yet you still let him hit it.

[Eli]

And yet you still let him hit it.

I really don't appreciate you making comments like that. That's neither funny nor appropriate.


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