Core Viewpoint - The potential spin-off of Boots from Walgreens Boots Alliance (WBA) signals a possible return to the stock market for the retailer, which has been under the control of its billionaire owner, Stefano Pessina, and his family, raising concerns about underinvestment and strategic direction [1][4][9]. Financial Performance - Over the past three years, WBA has extracted £1.1 billion in dividends from Boots but has only reinvested £527 million back into the business, leading to criticism that these funds could have been better utilized for store revitalization [2]. - Boots reported a profit increase of £40 million to £450 million last year, with sales growth in both beauty and health divisions, indicating strong market performance [10]. Investment and Strategy - There are concerns that Pessina and Barra's focus on pharmacy operations may hinder investment in other growth areas, despite Boots being highly cash-generative [3][4]. - Sources close to Pessina suggest that the separation from WBA will lead to increased investment in Boots, with no dividends expected to be taken from the business by Pessina or Sycamore [12]. Market Position and Growth Potential - Boots is recognized for its strong positions in beauty and health categories, benefiting from department store closures, and is seen as having significant growth potential, particularly in beauty products [15]. - Analysts believe there is room for Boots to expand its healthcare services, especially in light of the current pressures on the National Health Service [18][19]. Ownership and Future Plans - Pessina has expressed a desire to see Boots return to the stock market, with a potential float as early as the end of 2026, although some believe it may be prudent to wait for a more favorable market [9][20]. - Pessina's emotional connection to Boots suggests a long-term commitment to the brand, which has been a staple in British retail for over 175 years [14][21].