28 AGs Attack: Who Will Blink First?

Anti-smoking advocates notched a big victory when CVS Caremark  (NYSE: CVS  ) declared earlier this year that it would stop selling cigarettes in its retail pharmacies beginning in October, sacrificing an estimated $2 billion in sales because selling cigarettes is "inconsistent with our purpose – helping people on their path to better health," according to the CVS website.

Now 28 state attorneys-general are urging competing pharmacies Rite Aid (NYSE: RAD  ) and Walgreen (NYSE: WAG  ) , grocery stores Safeway (NYSE: SWY  ) and Kroger (NYSE: KRG  ) , and big box retailer Wal-Mart to follow CVS' lead and end cigarette sales. The letters follow CVS' reasoning precisely, declaring that "there is a contradiction in having these dangerous and devastating tobacco products on the shelves of a retail chain that services health care needs." So far, response from these companies has been muted -- but pressure is starting to build.

In the following video, Motley Fool health care analysts David Williamson and Michael Douglass discuss the health care services available in these retail chains -- especially the work Rite Aid is doing in telemedicine -- and the impact of the letters. They also consider the biggest question on investors' minds as these companies contemplate their course of action: How much of a difference would dropping cigarettes make, and which companies will likely feel the most pressure to follow CVS?

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  • Report this Comment On March 23, 2014, at 8:40 AM, lache02 wrote:

    I wonder if the analysts in this video have ever

    anayzed financial statements. Just what is the benefit of their video? Is the Motley Fool Investment Guide obsolete in the 21st Century?

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