Correction: CVS Caremark
In my reply to Frank from NJ’s question in the Comment Section of yesterday’s post for CVS Caremark, the discussion of “Front of Store” results was stated incorrectly. The company said in its press release that “front store same store sales would have been approximately 110 basis points (1.1%) higher if tobacco and the estimated associated basket sales (i.e. related with tobacco buyers’ other purchases) were excluded (from the prior year’s second quarter)”. I mistakenly said that front of store figures would have been higher “if it had not excluded tobacco products, which it is discontinuing throughout its network in the fourth quarter and is reporting these sales as “discontinued” until they are taken off the shelves”. Bottom line, there will be ongoing sales reporting irregularities for CVS’ front of store business when comparing retail sales year-over-year throughout the next two years, until all tobacco products are fully removed from the stores by the end of this year.