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Will Beauty and Wellness Have More Space to Shine in a Revamped CVS?

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Will Beauty and Wellness Have More Space to Shine in a Revamped CVS?

As the drugstore giant prepares to decouple its retail pharmacy and health care businesses, industry analysts assess the impact on beauty.

Beauty and wellness could have more room to shine at CVS as the drugstore giant prepares to untangle its retail pharmacy and health care businesses.

CVS Health revealed plans to separate into two independent, publicly traded companies. CVS Pharmacy will comprise about 9,000 retail pharmacies, mail pharmacy, MinuteClinic and the Health100 technology service business. Prem Shah, currently group president of CVS Health, will become CEO of CVS Pharmacy upon separation.

Aetna, CVS Caremark, CVS Specialty, Oak Street Health and Signify Health will make up the health care solutions company, which will continue to be called CVS Health in the interim. The planned separation is expected to be completed in the first half of 2028, subject to customary conditions and approvals.

The move marks a significant reversal of CVS’s strategy over the past two decades to build an integrated retail pharmacy and health care business.

Wendy Liebmann, CEO of WSL Strategic Retail, believes the separation could help CVS strengthen front-end sales, particularly in beauty and wellness. “They can finally focus on retail, and health and beauty are core category pillars,” Liebmann said.

Rohit Banota, founder of Jump Accelerator, sees a natural fit between beauty, wellness, longevity and health and CVS’s core health care mission. “Splitting the company allows for better targeting and positioning to increase margins and loyalty. A brand-driven, high-margin business like beauty needs true shopper intimacy for premium growth against consolidation, which is merely an operational strategy focused on efficiency and cost savings,” he said.


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