The decline in cigarette sales occurred in 13 of the states where CVS had at least 15 percent market share. The reduction in sales equals 95 million fewer packs of cigarettes sold, or the average smoker in those states buying five fewer packs of cigarettes since last September, according to the report.
The company estimated it held 1.5 to 2 percent of the U.S. tobacco market before removing the products, which accounted for approximately $2 billion in annual sales. CVS sales took a hit after the decision, with general merchandise revenue in stores open for at least one year falling 7.8 percent in the second quarter from the prior year.
However, the company also saw some benefits after cutting ties with smokes. In the eight months following the decision, nicotine patch purchases rose 4 percent from the year before in the 26 states where it had at least 15 percent market share. CVS officials also said the average number of smoking cessation counseling visits at its retail clinics — CVS Minute Clinic — nearly doubled.
CVS operates 7,800 retail pharmacies and is the second-largest manager of prescription drug benefits in the United States.
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