CVS Turns Health Conscious

By Prachi Makkar,
Money & Investing Writer

With a world that is becoming more focused
on leading a healthy lifestyle, companies
have been improving their images to appeal
to all consumers. In an attempt to show
the public that it truly cares about its customers,
CVS (NYSE: CVS) has changed its name
to CVS Health. CVS Health has upgraded its
facilities and products to accommodate its
new, healthy image.

There are more organic products to attract
other consumers. The company has also
upgraded its health care and is providing more
health related products.

The company has started by renovating
its stores and adding new products, giving it
a completely different atmosphere than the
original stores. To go along with this, CVS
Health has also stopped all sales of tobacco.
The company has made a real splash in the
world of health care.

CVS Health has taken out all cigars,
cigarettes, and tobacco products and replaced
them with anti-smoking products. Where the
consumers saw boxes of cigarettes, they will
now see nicotine gum and other products encouraging
the visitors to stop smoking.

The compamy is being supported by
anti-smoking activists nationwide. This new
approach is helping CVS Health enforce that
the company cares about health and wellness.
The 7,700 stores are changing their ways and
portraying a new image of being healthy.

Many people have questioned why CVS
Health is taking away tobacco, but not unhealthy
snacks. CVS Health is still stocking
its shelves with sugary snacks and candy. The
company replied to this by saying that although
unhealthy snacks are bad for you they
are not fatal to your health, like tobacco. The
company wants to enforce the idea that tobacco
is bad for you in the minds of the consumers,
so they have stocked up on anti-smoking
products instead.

With a decline in tobacco sales, the company
does not see taking away tobacco as
a threat. Their competitors, Walgreens Co.
(NYSE: WAG) and Rite Aid Corp. (NYSE:
RAD), have not banned tobacco sales. However,
they are also adding new facilities and
wider range of health care and related products.

There has been increased pressure on
these rival stores to also stop the sale of tobacco.
Some people say that CVS is doing this
for publicity and to differentiate themselves
from other drugstores.

The CEO of CVS Health has said that
they expect to lose about $2 billion. The
company claims that although they are losing
money, they will counter that loss with growing
health care.

CVS is depending on its new image to
bring in revenue for the company. Management
wants consumers to associate CVS with
health and wellness products and make it their
go-to store for everything. This new image
has actually been working in the company’s
favor. Since the announcement, the company’s
shares have grown 22 percent.

Investors have stuck with the company
during this announcement and only time will
tell how this will truly impact CVS.

A version of this article appeared in the Tuesday, Sept. 9 print edition.

Contact Prachi at
prachi.makkar@student.shu.edu

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