BJ’s Pays Rx Tax for Customers, Sales Increase Significantly

Jan 15, 2003
George Anderson

By George Anderson

The Boston Globe reports that three pharmacies operated by BJ’s Wholesale Club as well as five others are not charging their customers for the new $1.30 prescription tax levied in Massachusetts.

An unidentified BJ’s spokeswoman told the Globe, “the company decided to pay the tax itself to distinguish itself from competitors and offer its members greater value. The spokeswoman said pharmacy sales have increased significantly since the tax took effect Jan. 1 but declined to provide numbers.”

Moderator’s Comment: What do you think of BJ’s tax
tactics for distinguishing itself from the competition? Is there any potential
for this to backfire on the warehouse club chain?

We guess this shouldn’t surprise us. Residents of Massachusetts
have a long history of objecting to taxes whether it is on prescription medicines
or tea.
Anderson – Moderator

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