Costco Wholesale Corp. (NASDAQ:COST) announced on Thursday it will not sell abortion pill mifepristone across its U.S. pharmacy locations, citing insufficient member demand amid mounting pressure from religious activist groups targeting major retailers.
Check out the current price of COST stock here.
Low Demand Drives Business Decision
The warehouse retailer stated its position remains unchanged based on the lack of customer interest, Reuters reported.
“Our position at this time not to sell mifepristone, which has not changed, is based on the lack of demand from our members and other patients, who we understand generally have the drug dispensed by their medical providers,” Costco said.
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Religious Groups Shift Focus To CVS, Walgreens
Religious activist organizations, including Inspire Investing and Alliance Defending Freedom, successfully campaigned against retailers, including Costco, Kroger Co. (NYSE:KR), Walmart Inc. (NYSE:WMT), and Albertsons Companies Inc. (NYSE:ACI) last year.
These groups now target Walgreens Boots Alliance Inc. (NASDAQ:WBA) and CVS Health Corp. (NYSE:CVS), which dispense mifepristone in states where abortion remains legal, according to the report.
“Many retailers have become more cautious about taking overt political or social stances after recent controversies triggered boycotts, negative media coverage, and polarized consumer reactions,” said Arun Sundaram, senior analyst at CFRA.
Supreme Court Ruling
Following the Supreme Court’s Dobbs v. Jackson decision overturning Roe v. Wade, medication abortions now constitute nearly two-thirds of all terminations, with approximately 150,000 more cases in 2023 compared to 2020 levels, according to the Guttmacher Institute.
Market Impact
Costco closed at $972.04 on Friday, down $3.35 or 0.34%, with shares trading between $867.16 and $1,078.23 over the past year, according to Benzinga Pro data.
The company has a market capitalization of $431.08 billion, a price per earnings ratio of 55.14, and averages 2.14 million shares in daily volume.
Benzinga’s Edge Stock Rankings for COST stock indicate that the medium-term shows a downtrend, while both the short-term and long-term indicate upticks. Find out how the stock competes with other companies.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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