Walmart's E-Cigarette Sales Ban: Business and Public Health Case Study

This case study analyzes Walmart's decision to discontinue the sale of e-cigarettes in its stores across the United States, driven by growing health concerns and regulatory complexities surrounding vaping products. The decision was a response to rising reports about potential health risks associated with vaping, particularly among teenagers. The case study highlights the impact on the vaping industry, the reactions from manufacturers and retailers like CVS and Kroger, and the stance taken by media companies such as CBS and CNN. The analysis explores the business implications for Walmart, including the potential reduction in repeat customers, and the broader implications for public health and responsible business practices. Walmart's move is seen as a significant example, influencing other businesses and demonstrating a commitment to consumer well-being over solely profit maximization.

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Events Summary
The production and consumption of e-cigarettes have been on the rise for the last
three years. Its popularity is mainly seen amongst youths and cigarette addicts who aim at
abandoning the habit of smoking. Cigarette smoking is associated with lung diseases and
cancer. Despite the new technology used in e-cigarettes, concerns have been raised by the
state health state departments and the national government. For instance, lung illnesses
caused by vaping have increased. In order to address these concerns, Walmart made a
decision to stop the sale of e-cigarettes in its stores across the United States. The push for
regulations on smoking has forced many retailers to stop such sales. On the other hand, e-
cigarettes manufacturers such as VUSE and Vapor Technology Association are against such
actions because smokers will revert to tobacco cigarettes and marijuana. This will further
increase the rates of addiction and the occurrence of lung diseases compared to the
consumption of e-cigarettes. Retail chains like CVS, Kroger as well as Wegmans followed
suit. On the other hand, media companies like CBS, CNN and Viacom have promised not to
advertise the use of e-cigarettes because of warnings by the public health departments.
Further, politicians who received support from these companies have broken links and
reverted campaign aids awarded to them. These include Senator Catherine Cortez and
Kwame Raoul. It is without a doubt that the fight against the use of e-cigarettes is gaining
momentum.

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It is unfortunate for e-cigarette manufacturers, consumers and retailers who have
been part and parcel of this business. Thousands of youths have benefited from these
companies through employment while retailers such as Walmart have benefited from
repeat customers in their stores. Walmart states that many e-cigarette users buy other
commodities whenever they visit the stores to refill their cigarettes. This indirectly leads to
repeat customers thus a boom in the business. Most importantly, young individuals who use
these cigarettes account for the most loyal customers. This move to stop the sale of e-
cigarettes will directly impact the business. For instance, it will lead to a reduction in repeat
customers.
According to Lyle Beckwith who is the Vice president heading government relations,
many retailers sell products that are legal and not illegal. Walmart’s choice to sell the
products will not prevent other retailers from selling e-cigarettes because they are legal. On
the other hand, companies that have running contracts with manufacturers have to abide
by the contracts unless they make decisions jointly and amicably. It is also an important
factor to prevent the adverse risks that come from smoking. This stops Walmart from aiding
and abetting the use of cigarettes that leads to addiction or death. Walmart sets examples
which affect other businesses directly. Its decision is also respected by business partners
and other retailers in the country. For instance, its move shows how responsible it is in the
fight against the use of cigarettes.
The sale of products and services should not only target the making of profits but the
ultimate wellbeing of consumers. Big businesses like Walmart should lead by example in
fighting against the use of cigarettes so that it can have health consumers who boost their
businesses in the long run

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Work Cited.
New York Times. Walmart to End Sales of E-Cigarettes as Vaping Concerns Mount.
https://www.nytimes.com/2019/09/20/business/walmart-vaping-e-cigarette-sales.
Accessed on 23rd September 2019