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  1. #11
    Quote Originally Posted by Mateo View Post
    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.
    Last edited by RPB; 02-05-2014 at 04:37 PM.

 

 

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