CVS Split Could Give Beauty and Wellness More Room in Stores

CVS Health intends to divide into two independently traded companies, reversing a two-decade push to combine retail pharmacy with health care. CVS Pharmacy would hold about 9,000 retail pharmacies, the mail pharmacy, MinuteClinic and the Health100 technology service. Prem Shah, currently group president of CVS Health, would become CEO of CVS Pharmacy after separation.

The other company would keep the CVS Health name in the interim and combine Aetna, CVS Caremark, CVS Specialty, Oak Street Health and Signify Health. The transaction is targeted for completion in the first half of 2028, subject to customary conditions and approvals.

Industry analysts are weighing what the separation means for CVS's front-of-store business. Wendy Liebmann, CEO of WSL Strategic Retail, said the change could help CVS concentrate on retail, where health and beauty are core category pillars.

Rohit Banota, founder of Jump Accelerator, sees a natural link between beauty, wellness, longevity and health and CVS's health care mission. He said splitting the company could allow for better targeting and positioning to raise margins and loyalty.