February 5th, 2014
10:38 AM ET

CVS to Stop Selling Tobacco

Want to pick up a pack of cigarettes with your prescription refill? A major U.S. pharmacy chain is breaking that habit.

CVS Caremark announced Wednesday that it will stop selling cigarettes and other tobacco products at its CVS/pharmacy stores by October 1 of this year.

The retailer said the move makes CVS/pharmacy the first chain of national pharmacies to take tobacco products off the shelves.

"Ending the sale of cigarettes and tobacco products at CVS/pharmacy is the right thing for us to do for our customers and our company to help people on their path to better health," Larry J. Merlo, president and CEO of CVS Caremark, said in a statement. "Put simply, the sale of tobacco products is inconsistent with our purpose."

CVS Caremark is the largest pharmacy in the United States based on total prescription revenue, according to the company. It operates more than 7,600 CVS/pharmacy stores nationwide, in addition to more than 800 MinuteClinics, which are medical clinics within the pharmacy locations.

Health-oriented organizations and even President Barack Obama praised the move.

"As one of the largest retailers and pharmacies in America, CVS Caremark sets a powerful example, and today's decision will help advance my administration's efforts to reduce tobacco-related deaths, cancer, and heart disease, as well as bring down health care costs - ultimately saving lives and protecting untold numbers of families from pain and heartbreak for years to come," Obama said in a statement Wednesday.

"This is an important, bold public health decision by a major retail pharmacy to act on the long understood reality that blending providing health care and providing cigarettes just doesn't match," said Dr. Richard Wender, chief cancer control officer at the American Cancer Society.

"We need an all-hands-on-deck effort to take tobacco products out of the hands of America's young generation, and to help those who are addicted to quit," Health and Human Services Secretary Kathleen Sebelius said in a statement. "Today's CVS Caremark announcement helps bring our country closer to achieving a tobacco-free generation. I hope others will follow their lead."

Stopping cigarette sales comes at a price. CVS Caremark estimates it will take an annual loss of $2 billion from tobacco shoppers.

The company has enjoyed growing revenues in recent years, boosted by its pharmacy services business and prescription drug sales.

CVS Caremark hasn't reported its year-end results yet, but it took in nearly $94 billion in revenues in the first nine months of 2013, up slightly from the same period in 2012, according to its most recent earnings report.

In 2012, CVS Caremark reported $123.1 billion in revenues, a 15% jump from $107.1 billion the previous year.

"We commend CVS for putting public health ahead of their bottom line and recognizing the need for pharmacies to focus on supporting health and wellness instead of contributing to disease and death caused by tobacco use," the American Medical Association said in a statement.

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soundoff (4 Responses)
  1. sandra P. Weeden

    From now on I will go to CVS to buy whatever toiletries I need. Sorry Duane Reade. I think it is a bold move and an appreciated one by people who know someone who has died of lung cancer because of smoking. Way to go CVS!

    February 5, 2014 at 5:48 pm | Reply
  2. Name*Dolores

    Yhank you so much . For stepping up and doing the right thing I already get my meds from CVS but if I didn't I would switch because you really do care

    February 5, 2014 at 12:28 pm | Reply
  3. Ben Rophael

    What a courageous move!! I applaud you. Businesses exist primarily to make money. CVS is demonstrating there is more to life. Hopefully, you will make up for the lost revenue with other sales, and other drug chains will follow your example and do their part in eradxicating tobacco from today's market place.

    Ben, an 84-year old lifelong not-smoker who is suffering from chronic llung problems probably due to a 28-year marriage to a pack-a-day smoker.

    February 5, 2014 at 12:21 pm | Reply
  4. n. ryan

    I applaud CVS to stop selling cigarettes, however I wonder when they will stop selling
    beer and wine since I have seen people in line who are drunk buying the beer and wine
    CVS sells. Their aisles seem to be growing with these items as does their refrigerated
    cases. Serious drinking is also a health problem!

    February 5, 2014 at 10:56 am | Reply

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