Boots is reportedly set to close 300 UK pharmacies within the next year. According to reports, the retailer will close stores in close proximity to each other.
The announcement, from the Nottingham-headquartered company, comes in an effort to "consolidate" the business, reports suggest, meaning there will be 1,900 branches left across the UK from a base of 2,200. It is currently unknown which specific UK stores will be shut down.
According to reports, the move will reduce the chain's portfolio from around 2,200 to just 1,900. Boots employs more than 52,000 people, but the closures are not expected to lead to redundancies.
Is the government doing enough to help with the cost of living? Let us know
In the company's quarterly results it said: "Over the next year Boots will continue to consolidate a number of stores in close proximity to each other," the Mirror reports.
"Evolving the store estate in this way allows Boots to concentrate its team members where they are needed and focus investment more acutely in individual stores with the ambition of consistently delivering an excellent and reliable service in a fresh and up to date environment."
Following the Covid-19 pandemic and the current cost of living crisis, many businesses have suffered across the UK.
In its annual report and financial statement, included in Boots' annual accounts, published on the Companies House website, a statement read: “The impact of the current global cost pressures and supply chain disruptions, as economies reopened after COVID-19 lockdowns, has resulted in high inflation rates in the United Kingdom and globally. This has been exacerbated by the conflict that broke out between Russia and Ukraine on 24 February 2022 and has led to a cost of living crisis in the United Kingdom, across the markets in which the Company, its customers and its investees’ operate.
“The specific risks arising as a result of these macroeconomic factors are the risk of a downward valuation of the Company investments, driven by increased discount rates and as well as volatility in the longer-term market rents which are used in the impairment assessment of several of the investees' investment property portfolios, and an adverse impact on the trade of the Company's customers which could, in turn, negatively impact the Company's own sales.”
The statement continued: "Whilst the cost of living crisis has not caused a significant impact on the business to date, the Company has a rigorous planning process in place to consider and respond to the impact of these factors on both the Company's operations including trade, and its financial position, including re-forecasting and performance of impairment reviews as required (as detailed further below).
"These factors have not led to any impairment to the Company's investments in the current period, and the Company has not seen any significant impact on sales to date. Management continue to monitor the situation."
Nottinghamshire Live has attempted to contact Boots for comment.
Starting in 2019, the retailer closed more than 200 stores over an 18-month period - with many within walking distance of each other. And in 2020, it announced 48 opticians were closing, resulting in 4,000 job losses.
