Many U.S. Costco stores have stopped selling tobacco, Time reports. The move is primarily a business decision, the company says.
Costco will continue to phase out tobacco sales at more stores, the article notes. Currently 189 of its locations still sell tobacco.
“Tobacco is a very low-margin business, tends to have higher theft and is labor intensive in some cases (due to local municipality regulations)—further, we felt we could better use the space to merchandise other items,” a Costco spokesperson said.
Many convenience stores purchase tobacco products wholesale from Costco’s business center warehouses.
CVS stopped selling tobacco in the fall of 2014 in all of its stores. In February 2014 the company announced it would stop selling tobacco products because the sales conflicted with its healthcare mission.