RAD stock opened lower by 3% at $9.66 in Wednesday’s trading session after Rite Aid (NYSE:RAD) announced that it will increase the minimum age requirement to buy tobacco products to 21 within the next three months.
Bryan Everett, the COO of Rite Aid, stated that raising the age requirement to buy tobacco products is a significant milestone and will help ensure that tobacco products don’t fall into the hands of minors. Everett said that the decision was reached based on research from the National Survey on Drug Use and Health, which indicated that 80% of smokers had their first encounter before turning 18 years.
Raising Tobacco Buying Age to 21
Earlier this month Rite Aid indicated that it would stop selling e-cigarettes following an increase in high school students using cigarettes.
On Tuesday, Walgreens Boot Alliance Inc. (NASDAQ:WBA) indicated that it will increase the age to buy tobacco products as of September 1 after being put on notice by the FDA for allegedly selling tobacco products to children.
In other news, RAD stock has indicated that it will begin selling CBD lotions, lip balms, and creams in Oregon and Washington this month after other drugstore chains tested the demand for CBD products.
In a statement, the company indicated that it was motivated by customer interest in purchasing cannabis-based products. Currently, over 200 Rite Aid locations are offering CBD products in the two states. Besides Rite Aid, Walgreens and CVS Health Corp (NYSE:CVS) are also selling CBD products. The three drugstore chains will be selling topical products.
Rite Aid and Walgreens have downplayed the selling of cigarettes in their stores and shifted to cessation products like nicotine gums and patches. However, critics still hold the view that drugstores focused on health should not be offering products that cause preventable death.
RAD stock has underperformed the broader market this year. The stock has fallen over 35% so far this year on poor quarterly results.
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