CVS Caremark (NYSE: CVS) will begin testing an upscale beauty store concept this year under the less than creative name "Beauty 360", with the first locations set to open up right next to existing CVS locations. "Beauty 360" will offer 32 lines of skin care and cosmetics along with various fragrances, according to Reuters.Can you say flop? The problem is that people hate CVS. Googling the phrase "hate CVS" yields 17,900 results, and the chain has experienced success with decent prices on prescription drugs and an expansion strategy that has obliterated most of the mom and pop stores. I can't even imagine why anyone would choose to go to CVS to buy expensive skincare products.
Plus the name "Beauty 360" is really, really, really insipid.
CVS's only hope of having any success with this concept would seem to be making the stores nothing like CVS, and hoping consumers won't notice that there's any connection. Opening them next door won't accomplish that.
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