CVS Sales Once Again Hurt By Decision To Pull Tobacco Products

CVS Caremark

CVS Caremark reported on Friday that its general merchandise sales fell in the most recent quarter mainly as a result of its decision to pull cigarettes and other tobacco products from its shelves.

It was the fifth straight quarter that the pharmacy giant reported shrinking merchandise sales.

Total sales improved, climbing 10%, or $3.6 billion, as consumers continued to spend more money on prescription drugs.

While increased prescription numbers are good for CVS, the company is facing a growing number of generic brands which push down the sales price of such items.

CVS announced that it was pulling tobacco related products in February 2014. The company said at the time of its announcement that it expected sales to fall because of the move.

The pharmacy giant officially stopped selling tobacco and tobacco-related products in September 2014.

Despite the drop in general merchandise sales, the company posted improved earnings.

The company remains surefooted with its decision to pull harmful tobacco products from its shelves.

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Written by Peter Mondrose

Peter Mondrose

Peter Mondrose is the Editor-In-Chief at BusinessPundit. He received his degree in Economics in 1998 and a second degree in Journalism in 2004. He has served as a financial adviser, market trader, and freelance journalist for the last 11 years. When he's not investigating market conditions and reporting on workplace news, he can be found traveling with his wife, dog, and laptop. He can be reached at PeterMondrose@BusinessPundit.com or (929) 265-0240.