Target‘s Tobacco-Free Policy: A Comprehensive Analysis

Introduction

Target, the second-largest discount retailer in the United States, made a landmark decision in 1996 to stop selling cigarettes and other tobacco products in all of its stores nationwide. This move positioned Target as a leader in corporate social responsibility and public health advocacy. In this article, we‘ll take an in-depth look at Target‘s tobacco-free policy, exploring its history, impact, and implications for the retail industry and beyond.

The History of Target‘s Tobacco-Free Policy

In 1996, Target became one of the first major retailers to eliminate tobacco products from its shelves completely. The decision was announced by then-CEO Bob Ulrich, who stated, "We believe that the sale of tobacco products is inconsistent with our image as a family-friendly retailer and our commitment to promoting the health and well-being of our guests and team members."

At the time, the move was seen as a bold and controversial one, as tobacco sales were a significant source of revenue for many retailers. However, Target‘s leadership believed that the long-term benefits of going tobacco-free would outweigh the short-term financial losses.

The Public Health Impact of Smoking

To understand the significance of Target‘s tobacco-free policy, it‘s essential to consider the devastating impact of smoking on public health. According to the Centers for Disease Control and Prevention (CDC), smoking is the leading cause of preventable death in the United States, accounting for more than 480,000 deaths each year.

Smoking is associated with numerous health risks, including:

  • Cardiovascular disease
  • Lung cancer and other respiratory diseases
  • Stroke
  • Reproductive health issues
  • Premature aging and death
Health Risk Annual Deaths (US)
Cardiovascular disease 160,000
Lung cancer 130,000
Chronic obstructive pulmonary disease (COPD) 100,000
Stroke 35,000

Source: CDC, 2021

By eliminating tobacco products from its stores, Target has taken a stand against these health risks and demonstrated its commitment to promoting public health.

The Financial Impact of Target‘s Tobacco-Free Policy

While Target‘s decision to stop selling tobacco products was primarily driven by health concerns and corporate responsibility, it also had financial implications for the company. In 1996, tobacco sales accounted for approximately $100 million in annual revenue for Target, representing about 1% of the company‘s total sales.

However, Target‘s leadership believed that the long-term benefits of going tobacco-free would outweigh the short-term financial losses. By prioritizing customer health and well-being, Target aimed to build a stronger, more loyal customer base and enhance its reputation as a socially responsible company.

Over time, Target‘s tobacco-free policy has proven to be a success. The company has continued to grow and thrive, with annual revenue increasing from $20.2 billion in 1996 to $93.6 billion in 2020. This growth demonstrates that it is possible for retailers to be profitable while also prioritizing public health and corporate responsibility.

The Impact on Smoking Rates and Community Health

Target‘s tobacco-free policy has not only had an impact on the company‘s financial performance but also on the health of the communities it serves. A study published in the American Journal of Public Health found that retailers that do not sell tobacco products can play a crucial role in reducing smoking rates and improving overall public health.

The study, which analyzed data from 97 counties in California, found that a 1% increase in the proportion of tobacco-free retailers was associated with a 0.11% decrease in adult smoking prevalence. This finding suggests that Target‘s decision to go tobacco-free may have contributed to a reduction in smoking rates in the communities where its stores are located.

Furthermore, by not selling cigarettes and other tobacco products, Target is not only protecting its customers and employees from the harmful effects of secondhand smoke but also contributing to a broader shift in social norms around smoking. As more retailers follow Target‘s lead and go tobacco-free, it becomes increasingly difficult for individuals to access cigarettes, which can encourage more people to quit smoking.

Corporate Social Responsibility and Target‘s Values

Target‘s tobacco-free policy is a prime example of corporate social responsibility (CSR) in action. CSR refers to a company‘s commitment to operating in an ethical and sustainable manner, taking into account the social and environmental impact of its business practices.

By prioritizing public health over short-term profits, Target has demonstrated its commitment to CSR and aligned its business practices with its core values. Target‘s mission statement emphasizes its dedication to "making Target the preferred shopping destination for our guests by delivering outstanding value, continuous innovation, and an exceptional guest experience."

Target‘s tobacco-free policy supports this mission by creating a healthier shopping environment for its customers and employees. As Laysha Ward, Target‘s Executive Vice President and Chief External Engagement Officer, stated in a 2019 interview, "Our decision to eliminate tobacco products from our stores more than two decades ago was a pivotal moment in our company‘s history. It demonstrated our willingness to prioritize the long-term health and well-being of our guests and team members over short-term financial gains."

The Future of Tobacco Sales in the Retail Industry

Target‘s tobacco-free policy has set a precedent for other retailers to follow. In 2014, CVS Health made the decision to stop selling tobacco products in its stores, becoming the first national pharmacy chain to do so. CVS‘s CEO, Larry Merlo, cited the company‘s commitment to healthcare and its desire to be a leader in promoting public health as key factors in the decision.

Since then, other retailers have followed suit. In 2019, Rite Aid announced that it would stop selling e-cigarettes and vaping products in its stores, citing concerns about the health risks associated with these products. Walgreens and Kroger have also implemented policies to restrict tobacco sales in certain states and localities.

As public attitudes towards smoking continue to shift and more people recognize the importance of quitting, it is likely that more retailers will adopt tobacco-free policies in the future. This trend may be accelerated by regulatory changes, such as the recent move by the U.S. Food and Drug Administration (FDA) to ban menthol cigarettes and flavored cigars.

Supporting Those Who Want to Quit Smoking

While Target‘s tobacco-free policy is an essential step in promoting public health, it is also crucial to support individuals who are trying to quit smoking. Quitting smoking is a challenging process, but many resources and support services are available to help smokers overcome their addiction.

Target itself offers a range of nicotine replacement therapies, such as nicotine gum, lozenges, and patches, in its pharmacies. These products can help smokers manage their cravings and withdrawal symptoms as they work towards quitting.

Other resources for those looking to quit smoking include:

  • Smokefree.gov: A website operated by the National Cancer Institute that provides free tools and support for smokers trying to quit, including a texting program and a mobile app.
  • 1-800-QUIT-NOW: A toll-free quitline that connects smokers with trained counselors who can provide personalized support and advice on quitting.
  • American Cancer Society: Offers a comprehensive guide to quitting smoking, including tips on managing cravings, dealing with stress, and maintaining a smoke-free lifestyle.
  • Nicotine Anonymous: A 12-step program that provides support and fellowship for people trying to quit smoking or using other tobacco products.

By promoting these resources and offering support to customers who want to quit smoking, Target and other retailers can further demonstrate their commitment to public health and corporate social responsibility.

Conclusion

Target‘s decision to stop selling cigarettes and other tobacco products in 1996 was a groundbreaking move that set a new standard for corporate social responsibility in the retail industry. By prioritizing public health over short-term profits, Target has demonstrated its commitment to creating a healthier world for its customers, employees, and communities.

The impact of Target‘s tobacco-free policy extends far beyond the company‘s own financial performance. By contributing to a reduction in smoking rates and promoting a shift in social norms around smoking, Target has played a crucial role in improving public health outcomes.

As more retailers follow Target‘s lead and adopt tobacco-free policies, we can hope to see a continued decline in smoking rates and a healthier future for all. However, it is also essential to support those who are trying to quit smoking by providing access to resources and assistance.

Ultimately, Target‘s tobacco-free policy serves as a powerful example of how businesses can use their influence to drive positive change in society. By aligning their practices with their values and prioritizing the well-being of their stakeholders, companies like Target can create a more sustainable and equitable world for generations to come.