CVS Changes Name, Ends Tobacco Sales

CVS on Wednesday announced it changed its name to CVS Health—a move that coincided with its decision to stop selling tobacco products.

“Health is everything and CVS Health is changing the way health care is delivered to increase access, lower costs and improve quality,” said company CEO Larry Merlo in a statement.

CVS stores as of Wednesday will no longer sell tobacco products. It became the first national pharmacy chain to do so.

“By eliminating cigarettes and tobacco products from sale in our stores, we can make a difference in the health of all Americans,” Merlo said.

Forbes reported the move will cost CVS about $2 billion a year; tobacco sales made up about 3 percent of the company’s revenue.

Merlo told Forbes that the decision will spur new business to make up for the lost sales.

CVS is based in Woonsocket, Rhode Island and operates about 7,700 retail pharmacies.

Photo credit: Mike Mozart via Flickr