CVS snuffs tobacco companies

Earlier this month, CVS announced they will no longer carry tobacco products in their stores. This decision comes at a great cost for the company. Accounting for 3% of the company’s total profit, CVS brings in $2 billion annually from the sale of tobacco products. According to CVS CEO Larry J. Merlo, eliminating tobacco from their stores is in line with the company’s purpose of helping customers on their path to better health. But is this move to better brand image worth the cost? Sure CVS is a pioneer and is demonstrating that the company is on a righteous mission to promote the fact that they care about their customers’ health but they are doing this at the expense of 3% of their annual revenue. Do you think this move will help to strengthen the brand and ultimately increase sales enough to cover the lost revenue?  Do you think this strategy is sustainable? What other benefits or costs do you see could come out of this move? Do you think other companies will follow suit? What does this mean for tobacco sales? Is it ethical to cut out a certain product completely or could this be seen as discrimination?