CVS Pharmacy to quit cigarettes, cease selling tobacco products

(http://www.reuters.com) According to Reuters, CVS Caremark Corporation has announced that it will discontinue selling tobacco products in its 7,600 CVS Pharmacy stores by October. This will make it the first national drugstore chain in the United States to stop selling cigarettes, putting it ahead of competitors like Walgreens and Rite Aid.

Public health advocates have praised the move, saying that it sets an example for other retailers to follow. While this is certainly a good health decision, the motivation behind it may have as much to do with business as compassion, as the company says that this is a way to "strengthen its position as a healthcare provider," thus increasing sales of vaccines, pharmaceuticals and who knows what else in the coming future.

"We believe the move will be viewed as a positive long-term decision by CVS, despite the near-term profit drag, as it paves the way for increased credibility with both healthcare consumers and payers," ISI Group analyst Ross Muken wrote in a note.

As reported by Reuters, "CVS executives said the company would replace some of [the] lost cigarette sales through smoking cessation programs at its pharmacies and through Caremark.

"The company said the programs would... also be a key selling point as it tries to land more corporate contracts this year."

Cigarette sales fell 31.3 percent over the past 10 years, and hopefully CVS' decision will help increase that trend, whatever the reason for it may be.