Leading US pharmacy plans to clear shelves of cigarettes
From October, smokers will no longer be able to stock up on Marlborough lights and flu medicine at their local CVS.
The company has taken the decision to become the first American pharmacy to clear all tobacco products from its 7,600 stores.
"Ending the sale of cigarettes and tobacco products at CVS/pharmacy is the right thing for us to do for our customers and our company to help people on their path to better health," said Larry J. Merlo, president and CEO, CVS Caremark.
The decision will prove a costly one for the company, with annual revenues taking a hit of $2bn (£1.2bn). CVS's decision comes as it prepares to play a larger part in the US healthcare system through its pharmacies and nursing practitioners.
CVS is home to 750 MinuteClinics, offering a range of services from flu shots to diagnosis of common ailments.
The company estimated that the impact on 2014 earnings per share would range between six and nine cents per share.
President Obama praised the decision in a statement on Wednesday morning:
As one of the largest retailers and pharmacies in America, CVS Caremark sets a powerful example, and today’s decision will help advance my administration’s efforts to reduce tobacco-related deaths, cancer, and heart disease, as well as bring down health care costs.
The pharmacy chains is set to generate $126bn in revenue in the current fiscal year, according to Bloomberg estimates.