CVS will cease tobacco sales in October
Woonsocket, R.I. – CVS will stop selling cigarettes and other tobacco products at its more than 7,600 CVS/pharmacy stores across the U.S. by October 1, 2014. CVS/pharmacy will be the first national pharmacy chain to take this step.
CVS will also launch a national smoking cessation program this spring, expected to include information and treatment on smoking cessation at CVS/pharmacy and MinuteClinic along with online resources. The program will be available broadly across all CVS/pharmacy and MinuteClinic locations and will offer additional comprehensive programs for CVS Caremark pharmacy benefit management plan members to help them to quit smoking.
CVS management estimates it will lose around $2 billion in annual revenues from lost tobacco sales, including around $1.5 billion in tobacco sales and $500 million in sales of other products to tobacco customers. This represents around 17 cents per share and $0.06 to $0.09 in earnings per share.
"Ending the sale of cigarettes and tobacco products at CVS/pharmacy is the right thing for us to do for our customers and our company to help people on their path to better health," said Larry J. Merlo, president and CEO, CVS Caremark. "Put simply, the sale of tobacco products is inconsistent with our purpose."
Report: Target exec apologizes for breach in Senate testimony
Minneapolis – John Mulligan, executive VP and CFO of Target, said the retailer is deeply sorry for its late 2013 data security breach and is aware that consumer confidence in the company is shaken; his comments came during Feb. 4 testimony before the Senate Judiciary Committee.
According to Reuters, Mulligan also said that Target discovered 25 registers infected with malware on Dec. 18, contradicting an earlier statement from the retailer that all malware had been removed by Dec. 15.
Mulligan also said Target is thoroughly reviewing the security of its payment network and issuing new cards to customers who request them. He said the Department of Justice initially informed Target of suspicious card activity on Dec. 12, and the company then investigated, removed malware and publicly announced the breach Dec. 19.
Senators on the committee said U.S. retailers need to adopt both chip-based payment cards and four-digit customers PINs to go with them. Mulligan said Target wants to switch to chip-and-PIN card payment but so far banks have not supported the move. Committee chairman Patrick Leahy (D-Vt.) has proposed legislation to create a national standard for companies to report data breaches to the public, which has been endorsed by Federal Trade Commission chairwoman Edith Ramirez.
In addition, Michael Kingston, senior VP and CIO at Neiman Marcus Group, testified that a processing firm informed Neiman Marcus of a data breach on Dec. 13, and the retailers informed the public on Jan. 10. Neiman Marcus concluded that the breach occurred between July 16 and Oct. 30.
Zappos.com’s Arun Rajan heads to One Kings Lane
San Francisco-based One Kings Lane, an online destination for the home, has appointed Arun Rajan as chief technology officer.
In his new role, Rajan will lead end-to-end technology delivery, data infrastructure and site operations to support the growth and evolution of One Kings Lane.
Rajan joins alongside chief product officer David Yu, who joined One Kings Lane in mid-2013.
"As One Kings Lane continues to grow at rapid pace, Arun is the ideal person to lead our technology strategy and help us achieve our vision of becoming the leading lifestyle brand for the home," said Doug Mack, CEO of One Kings Lane. "Arun brings an extensive background in transactional consumer web businesses and his customer-centric approach to technology makes him a perfect fit for our culture built on delivering great experiences to our shoppers every day."
Previously, Rajan spent more than four years as CTO at Zappos.com, where he led the creation and execution of a technology strategy and roadmap that enabled rapid business growth and scalability.
One Kings Lane “connects daily design inspiration with a fresh collection of select home goods, designer and vintage items,” according to a company release.