By Mike Esterl
Two dozen state attorneys general are urging five major
retailers with pharmacies to drop tobacco, calling on them to
follow the lead of CVS Caremark Corp., which said last month it
would stop selling cigarettes and other tobacco products by
October.
"Pharmacies and drugstores, which increasingly market themselves
as a source for community health care, send a mixed message by
continuing to sell deadly tobacco products," said New York Attorney
General Eric Schneiderman in a statement Monday.
Attorneys general from New York, Ohio, Arizona, Mississippi and
20 other states sent letters to Wal-Mart Stores Inc., Walgreen Co.,
Rite Aid Corp., Kroger Co. and Safeway Inc. on Friday, urging them
to cease tobacco sales. The government estimates 480,000 Americans
die from smoking annually.
Stores with pharmacies represent a small slice of tobacco sales.
About 85% of U.S. cigarettes are bought at gas stations,
convenience stores or specialty tobacco stores, according to
Euromonitor. There was no indication Monday that the retailers
would stop selling tobacco, and the attorneys general aren't taking
any immediate legal steps to force action.
Still, the request puts new pressure on the $100 billion U.S.
tobacco industry, which is grappling with slumping sales, rising
taxes, widening smoking bans and new public-information campaigns
on the perils of tobacco. Cigarette consumption contracted about 4%
last year.
CVS estimated last month it would lose $2 billion in annual
revenue from tobacco and other sundries by destocking its shelves
but said the products had no place in a drugstore company that is
trying to become more of a health-care provider amid an expected
shortage of primary care doctors.
Since 2008, San Francisco, Boston and more than a dozen towns in
Massachusetts have banned retail pharmacies from selling tobacco
products.
Wal-Mart spokeswoman Brooke Buchanan said the company is
currently reviewing the letter from the state attorneys general,
which it received on Sunday, but declined to comment on whether it
might end tobacco sales. The retailer has steered away from
previous legislative attempts to ban cigarettes, indicating that
customer preferences dictate what it sells at its stores.
Rite Aid said in a statement it is "always evaluating options
and programs for our stores and our customers." The pharmacy chain
added it "offers a wide variety of smoking cessation products and
provides additional resources, including our pharmacists, who are
available to counsel people trying to stop smoking."
Kroger said in a statement that it has "a great deal of respect"
for state attorneys general and that it intends to "carefully
review their letter."
Walgreen said it is reviewing the letter but declined to comment
further. Safeway didn't immediately respond to a request for
comment.
Andrew Friedman, a spokesman for New York Attorney General
Schneiderman, said there were no immediate plans to try to legally
force the five national retailers to drop tobacco. But he said
additional pressure, including legal reforms or litigation, hadn't
been ruled out at a later date.
Attorneys general of four U.S. territories and districts,
including Puerto Rico and the District of Columbia, also signed
Friday's letter.
Shelly Banjo and Annie Gasparro contributed to this article.
Write to Mike Esterl at mike.esterl@wsj.com
Corrections & Amplifications
An earlier version of this article incorrectly stated that
attorneys general in 28 states are asking five major U.S. retailers
to stop selling tobacco products in stores that also have
pharmacies. Attorneys general from 28 states and territories are
asking five major U.S. retailers to stop selling tobacco products
in stores that also have pharmacies.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires