Tobacco Sales at Pharmacies?

Posted on | October 6, 2008 | Comments Off on Tobacco Sales at Pharmacies?

An odd combination, but retailers are in it for the moneyA new bill pending in Congress would give much greater government oversight of tobacco and new bold graphic warnings on cigarette packages. That’s great news – if it passes. But while cigarette packaging may look different, tobacco will likely be sold in familiar aisles. And that’s where you might find a surprise. Where are cigarettes sold in America? About two thirds, as one would expect, are sold in convenience stores, 11% in grocery stores or supermarkets, 11% in tobacco outlets, and 3% in liquor stores. The surprise is that nearly 4% of total tobacco sales are from pharmacies.

That’s right – some of the places that are supposed to be protecting your health are also selling cigarettes. The juxtaposition of cigarettes and pharmaceuticals (including some to address nicotine addiction) is an odd one indeed. In fact, a survey of 1,000 California pharmacists found that 82% support a ban on cigarette sales in pharmacies. Unfortunately, they don’t have final say in the matter.

A similar conflict exists in big-box retailers like Wal-Mart, which are the home not only of pharmacies but over 1,000 in-store health clinics across the United States.

Why do they do it? One word – money! In 2007, over 17 billion packs of cigarettes were sold in this country. Grocery stores, drugstores, wholesale clubs and mass merchandisers were responsible for $13 billion in sales, nearly 20% of the total buy. With that kind of money, it’s not surprising that Wal-Mart hasn’t budged. They’re not taking questions on the issue these days. But in the past CEO Lee Scott has said, "There are still a tremendous number of our customers who smoke. We’ve got a market to serve, and second we have shareholders to think about." The National Association of Chain Drug Stores is also taking a hard line.

Others have broken ranks. Target quit selling tobacco products way back in 1996, and CVS has hinted that it is headed in the same direction. And states and municipalities across the United States this year have been writing legislation that would disintegrate the sale of tobacco from outlets that provide health services and medication.

These retailers are smart to bite the bullet now. As tobacco remains under attack by health advocates, revenues from sales will likely decline while the adverse impacts on corporate health images and their defining brands will only continue to grow.

For more information about this topic, please watch the video, embedded with this blog post, or read the full transcript, below. Then send a comment. Should we be pressuring drug stores more forcefully to give up their tobacco sales?