CVS recently announced that it will stop selling tobacco products by October. Despite some backlash on social media networks, retail customer trends indicate that the pharmacy's decision might have been as strategic as it was health-conscious. The store's effort to stay ahead of changing consumer demand and re-brand itself as a comprehensive health center exemplifies how retail insights can lend a competitive edge.

"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," said Larry Merlo, president and CEO of CVS Caremark. "Put simply, the sale of tobacco products is inconsistent with our purpose."

While a desire to promote healthier habits may be at the core of CVS's decision, the move was also strategic. The number of regular smokers in the United States has fallen below 20 percent of the population, due in large part to the success of ad campaigns and studies linking smoking to cancer, FoxBusiness noted. By pulling out of a declining market, CVS can focus its resources elsewhere and appears as a leader in the industry. Much of the positive feedback has recognized CVS's commitment to health, according to the news source, an association CVS has fostered by expanding its services to include immunizations, clinic services and consultations with pharmacists. 

This entry was posted by Retail Pro on Friday, February 7th, 2014 at 6:28 am .