Just speaking for me it's no big loss because it's crappy tobacco anyway that has probably been sitting on the shelf for way to long...LOL.
CVS Stores to Stop Selling Tobacco
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@reichenbach - they're not losing $2B, they're losing the *profit* on $2B of sales. I think someone up above noted that profit margins on tobacco are razor-thin, so it's probably not a lot in the context of their total income. They're banking on the publicity drawing in new customers who think they're being noble and making up for whatever income they're giving up.
The profit margin in cigarettes is slim, and takes up a lot of prime location in the store. I only go there when my main pharmacy is out of a prescription with at most the store having about six customers.
Companies pay these stores for product placement. I'm sure that would make up any loss of cigarette sales alone. This whole move is getting them free advertisement, a yeah from the people and prime placement of products with a higher margin.
Just another way to look at the move.
Craig
Companies pay these stores for product placement. I'm sure that would make up any loss of cigarette sales alone. This whole move is getting them free advertisement, a yeah from the people and prime placement of products with a higher margin.
Just another way to look at the move.
Craig
It just started in my province this last year, any place that has a pharmacy cannot by law sell tobacco products, so the glorious thing that's happened now is that many places that used to have pharmacies have closed them down in order to sell tobacco, so now there's less pharmacies making it more difficult for the infirm and the elderly to get their prescriptions in one easy trip while they're out shopping at the grocery store.
Before they banned tobacco sales in any store that has a pharmacy they made it illegal to show any tobacco products for sale, so where all of the tobacco products behind the counter used to be just on shelves, they're now hidden behind anything such as shower curtains to drawers. The funny thing though is people still don't forget to buy the cigarettes they went to the store for. Trust me it's just the beginning of alot of crap.
Eric: That might be just what are declining number of tobacco shops need. I think I'd favor that just so I could get a real pipe and tobacco store in my city. Unfortunately, I have my doubts as to there being sufficient pipe smokers left in society to make the effort worthwhile. Still, it's an intriguing idea.
No Warren, it would mean there would be even more cigarettes for sale at our tobacco shops :P Not more pipes... I do have a store though that went towards pipe tobacco and higher end pipes from just having cigars and cigarettes with a few mini Godawful meerschaum pipes.
Eric: Your local vendor just isn't in tune with the opportunities presented. A savvy retailer would see the situation you you dread as a grand business opportunity.
If a pipe store is on the ragged edge, adding to their customer base would be a plus. Whether the profit is from cigarettes, pipes,etc. is of no matter. If I owned a pipe and cigar shop I would welcome the increase in walk-ins that would be generated if tobacco products could only be sold in a so called "tobacco store." If selling cigarettes improved my bottom line, I would embrace the idea. Better profits would enable me to expand pipe lines, carry a wider variety of blends. Also, imagine how many of the new customers would be intrigued about pipes and cigars. Your market becomes more captive if all tobacco users in your region must come to your store for product.
Keep in mind that I'm not talking about a situation where the government runs the store, akin to state run liquor stores. In those cases there is no reason to cater to the customer. The customer must simply purchase what the state provides.
If I'm in business I can't afford to look down my nose at any prospective customer. Profits from cigarette smokers are every bit as spendable as profits from pipe buyers. No difference. I fail to comprehend why a tobacco store would shun anything that would improve their bottom line and allow them the ability to carry more product that appeals to more customers. Imagine a pipe store with an improved profit being able to carry more upper-end pipes as they could now afford to have such product sitting longer on the shelf, but hurting them less.
No, such a law would cause many to be inconvenienced as they might have to travel farther for the cigarettes, but the bottom line is the tobacco store would benefit. Ergo, pipe smokers could benefit also by seeing expanded displays of pipes and larger selections of tobacco should the retailer want to cater to those customers. At least that's the way i would approach the situation. Severely limiting the number of tobacco outlets would provide almost unlimited opportunity for the savvy purveyor of pipes and blends.
Such a law would drive people into the tobacco retailer's establishment, and increased customer base is a positive.
If a pipe store is on the ragged edge, adding to their customer base would be a plus. Whether the profit is from cigarettes, pipes,etc. is of no matter. If I owned a pipe and cigar shop I would welcome the increase in walk-ins that would be generated if tobacco products could only be sold in a so called "tobacco store." If selling cigarettes improved my bottom line, I would embrace the idea. Better profits would enable me to expand pipe lines, carry a wider variety of blends. Also, imagine how many of the new customers would be intrigued about pipes and cigars. Your market becomes more captive if all tobacco users in your region must come to your store for product.
Keep in mind that I'm not talking about a situation where the government runs the store, akin to state run liquor stores. In those cases there is no reason to cater to the customer. The customer must simply purchase what the state provides.
If I'm in business I can't afford to look down my nose at any prospective customer. Profits from cigarette smokers are every bit as spendable as profits from pipe buyers. No difference. I fail to comprehend why a tobacco store would shun anything that would improve their bottom line and allow them the ability to carry more product that appeals to more customers. Imagine a pipe store with an improved profit being able to carry more upper-end pipes as they could now afford to have such product sitting longer on the shelf, but hurting them less.
No, such a law would cause many to be inconvenienced as they might have to travel farther for the cigarettes, but the bottom line is the tobacco store would benefit. Ergo, pipe smokers could benefit also by seeing expanded displays of pipes and larger selections of tobacco should the retailer want to cater to those customers. At least that's the way i would approach the situation. Severely limiting the number of tobacco outlets would provide almost unlimited opportunity for the savvy purveyor of pipes and blends.
Such a law would drive people into the tobacco retailer's establishment, and increased customer base is a positive.
We live in the age of political correctness. I see more and more places stop selling tobacco products. Eventually the online retailers will be shut down. Just my opinion.
Yup, the local CVS doesn't sell tobacco. Interestingly, my local Walmart and Walgreens both still carry tobacco products but no longer carry pipes nor pipe tobacco. I surmise they just don't get the volume they need, though I think Walgreens may be conjuring with the contradiction of being a health store and tobacco health issues. The Smoker Friendly chain carries a few pouch tobaccos and a few bag tobaccos but only the most rudimentary cob pipes, and a few of the standard tubs of OTC's. Even the local Tinder Box features their cigars and carries pipes as a sort of sideline, though they still have a selection of bulk and tinned tobaccos.
I was talking to the owner of a little card store in the strip where I work, and he was saying how he only makes like 50 cense per cigaret. So I am betting that drug stores like CVS are not carrying tobacco products because the don't make a good profit on them and use the Political Correct bull crap we stopped selling cigarets in our stores as a marketing ploy make themselves look good and get people to shop their.
I'm sure it was not an easy decision for a large chain store to make, and sell the idea to their shareholders.
There is little doubt that there was some loss of profits. People who smoke, especially cigarettes, will buy them no matter the cost, but that large group will purchase them someplace else, along with the snacks, and other impulse purchased items.
There is little doubt that there was some loss of profits. People who smoke, especially cigarettes, will buy them no matter the cost, but that large group will purchase them someplace else, along with the snacks, and other impulse purchased items.
I can't figure out how to quote on this forum.
But, I think jgriff hit the nail on the head, CVS is setting themselves up for some type of government payback.
But, I think jgriff hit the nail on the head, CVS is setting themselves up for some type of government payback.
I have no idea how CVS is doing. I have no reason whatsoever to step foot into one. However, yesterday at the Rite Aid across the lot from CVS the sales were brisk, the line at the register longish, but moving, and the tobacco shelves were stuffed with stock and about twice as many linear feet allocated for all tobacco - pipes and pipe tobacco were well stocked and prominent, a better show than last year and pre-CVS's moves.
My local CVS lost all my business as soon as they instituted this, and it was pretty substantial with all of my meds. Walgreens just built a store right across the street from my CVS so I go there for everything.
I don't dispute the marketing decision of pharmacies not selling tobacco products including pipes and pipe tobacco, nor groceries for that matter. I would hope, though I don't expect, some of the smoke shop chains to respond by expanding their inventory to include a wider array of pipe tobacco and a few journeyman grade briar pipes as well, as that would be an appropriate venue for these products and not seem to go against the purpose and intent of the store. One of the smoker chains near me sells a few OTC pouches and tubs, very little selection, and virtually no pipes at all. These retailers should take up the slack and not just peddle cartons of cigarettes and vape merchandise. They won't, but they should, and it would be a wise marketing move, I believe.
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