Boots to close 300 stores despite strong Q3 sales
Despite Boots’ financial performance, stores in close proximity to each other will be shut as part of plans to ‘consolidate’ the business
Boots will reportedly shut 300 branches across the UK over the coming year, despite the group’s retail sales increasing by 13.4% in its third quarter of trading, as the retailer looks to consolidate the business.
According to the BBC, the move will see its portfolio fall from 2,200 stores to 1,900, though the BBC said it understood no redundancies would be made, with staff instead offered roles at nearby stores.
The decision to close shops comes as Boots noticed a surge in people shopping online and choosing own-brand labels in a bid to save money. Boots.com continued to perform strongly, with sales up over 25% against last year, accounting for over 14% of retail sales.
Elsewhere, Boots UK comparable pharmacy sales rose by 5.7% compared with last year. Overall, footfall continued to improve for Boots stores in the quarter, increasing by 7%.
According to the retailer, its ‘Everyday’ essentials products also saw volume growth of 40%.
Rosalind Brewer, CEO of Walgreens Boots Alliance, the owner of Boots, said: “WBA achieved 8.9% constant currency sales growth in the third quarter despite a challenging operating environment. Consumers continue to appreciate the value, convenience, and range of services provided by Walgreens and Boots.
“However, our revised guidance takes an appropriately cautious forward view in light of consumer spending uncertainty, while still demonstrating clear drivers of a return to operating growth next fiscal year.”
She added: “I am confident that our turnaround strategy positions WBA to drive sustainable core growth and deliver long-term shareholder value.”
