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My understanding was that CVS hoped to partner with more health companies, and cigarettes may have legally prevented them from doing so. For example, CVS provides flu shots during flu season. They may be able to provide more (and more profitable) medical services in-store if they no longer sell cigarettes. There has to be a profit motive behind this.
Is there some law about being able to partner with health companies if you sell tobacco? I've never heard of one.