Costco Gradually Removes Tobacco From Shelves
Costco has already reduced the amount of tobacco stocked in its stores and has plans to remove the product entirely.
Costco Wholesale Corporation has taken a healthy decision but only time will tell if it is healthy for the business or not. It has already removed tobacco from its shelves of many stores in the United States and has plans to take this decision to the next level by almost entirely removing the cancerous product out.
The owner of numerous retail stores around the United States has not made this plan completely public so far and keeps the matter low for now. It has given many hints of what it intends to do during calls with analysts. The amount of cigarettes Costco wholesale stocks in its stores has reduced immensely over three to four years. It has already managed to damage tobacco market by a low double digit.
The fresh food provider even made its decision of going completely organic a while ago by only keeping free eggs on its shelves and get rid of the caged ones, so that customers receive better food options. These recent decisions of the company show that it has an interest in keeping it customers healthy.
The executives of the retail chain showed an interest and attempted to remove tobacco out of the company’s center warehouses so that they do not have to deliver this product at a large scale. However, not all is lost for smoking customers of Costco Wholesale Corporation, as the retailer does not have plans to remove tobacco from all of its stores, 189 stores in US still sell the product out of 488 of them.
Tobacco is already not such a profitable product, and causes theft instead; the company believes that the left up space can be utilized for other merchandise. The product plays a minor part in the business of the retail chain, thus no loss will be reported if it is entirely removed.
Costco even made headlines when it made the decision to take hover boards off its shelves, just like many other retailers in the market, including Bed Bath & Beyond. This was done because of the fire hazard brought by the boards, which might have led to further lawsuit, thus the decision was not criticized.
CVS health also removed tobacco completely out of its stores in February in order to show that it cares about the health of its customers. Now Costco is following the footsteps of this company. California State Senate has turned the smoking age to 21 instead of 18, according to legislation on the 10 March. This can be damaging for tobacco companies, but healthy for the customers of the retail chain.