CVS’s decision to quit selling tobacco products in September 2014 has resulted in almost 100 million fewer packs of cigarettes being sold in the United States, according to CVS CEO Larry Merlo.
Speaking to USA Today on the fifth anniversary of the retail store’s landmark decision, Merlo said that in states where CVS Pharmacy has a market share of 15 percent of more, there was a direct correlation between the company’s decision and the amount of tobacco that was sold in those markets.
“What we found from research was that people who purchased their cigarettes exclusively from CVS Pharmacy were about 38 percent more likely to stop buying cigarettes altogether,” said Merlo.
CVS sold approximately $2 billion of tobacco and related items prior to September 2014. While the company didn’t make up for the loss of that revenue directly, the decision became a “foundational moment” for CVS on its journey to becoming more of a healthcare company.
According to Merlo, customers buying tobacco that were using CVS Pharmacy primarily as a convenience store shifted to convenience stores and gas stations selling tobacco products.
But customers who used the drugstore to purchase additional items such as personal care and pharmacy products remained CVS customers.