CVS Caremark CEO Larry Merlo announced the decision saying "ending the sale of cigarettes and tobacco products at CVS/pharmacy is the right thing for us to do.”
Merlo finished by adding, “put simply, the sale of tobacco products is inconsistent with our purpose."
CVS is the second largest drugstore chain in America, operating more than 7,600 locations.
In recent years CVS and other chains have focused more on things like flu shots and mini-clinics in their stores.
Merlo says that makes selling tobacco a contradiction.
Estimates say the move will cost the company over $2 billion in sales annually.
Even so, CVS executives expect the move to help bolster the growth of the health care arm of their business.
President Obama praised the move.
"I congratulate and thank the CEO of CVS Caremark, Larry Merlo, the board of directors, and all who helped make a choice that will have a profoundly positive impact on the health of our country."
The chain says they will phase out the sales with complete elimination coming by October 1st.