Walgreens outlines Boots investment plans after abandoning sale
Last month, it was reported that Walgreens shelved plans for a £7bn sale of the UK health and beauty retailer for the second time
Walgreens Boots Alliance has laid out plans that will see it invest in retailer Boots after shelving plans for its sale for the second time, according to The Sunday Times.
The company revealed to the paper that it has begun “sprucing up” the retailer’s stores, investing in its beauty halls, and offering more GP services across the sites.
Ornella Barra, head of Walgreens’ international, told the paper: “Boots is very important for Walgreens. It’s in a very good position in the market, so at the moment, the best solution is for Boots to remain part of the group. Walgreens will continue to support Boots to remain number one in the UK market.”
She added that Walgreens has also signed off a three-year investment plan that will total hundreds of millions of pounds.
Part of this investment includes already opening new beauty halls or healthcare departments in 450 of its larger stores. It will upgrade a further 70 stores this year, followed by 100 more next year.
Last month, it was reported that Walgreens shelved plans for a £7bn sale of the UK health and beauty retailer for the second time.
According to The Telegraph, Walgreens abandoned the plans after cutting its profit outlook and announcing to close 700 of its US stores.
Despite this, third quarter sales for the retailer were 6% higher than a year ago, with growth across all categories, and increased total retail market share.
Chief executive Tim Wentworth told The Telegraph: “While we believe there is significant interest in Boots at the right time, its growth, strategic strength and cash flow remain key contributors to the company. We are committed to continuing to invest in Boots UK and find innovative ways for this business to fulfil its potential.”
In 2022, WBA pulled plans to sell Boots after the global financial markets suffered “unexpected and dramatic change”.
At the time, the group said that as a result of market instability “severely impacting financing availability’, no third party was able to make an offer that “adequately reflects the high potential value of Boots and No7 Beauty Company”.
Since then, however, interest in selling the retailer has been revived, and last December it was reported that WBA was eyeing an initial public offering (IPO) on the London Stock Exchange for Boots after revisiting plans to offload the pharmacy chain.
Boots has been contacted for comment.
