High street pharmacy Boots is to close hundreds of stores up and down the country according to reports. The total number of branches to shut is expected to be around 300 and this will happen across the next year according to The Mirror. Four have already closed their doors since the start of the year.
In its quarterly results, the company said: "Over the next year Boots will continue to consolidate a number of stores in close proximity to each other.
"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."
Boots employs over 52,000 people, but the closures are not expected to lead to redundancies. Sources close to Boots say all impacted team members will be offered redeployment. This is part of ongoing store reviews to ensure the "company has the right stores in the right locations" – that can be resourced and invested in (significantly).
Sources indicate the 300 figure is over the next twelve months, and following this the company will still have 1,900 stores across the UK. The source said: "This is by no means Boots coming away from the High Street. It is essentially about removing overlapping stores."
It is understoof that the vast majority of closing stores (more than 85%) are within 5km of one another, with 82% of people within the UK remaining with a 10-minute drive of a Boots store following this.
Boots employs over 52,000 people, but the closures are not expected to lead to redundancies. James Kehoe, global chief financial officer at Boots parent company, Walgreens Boots Alliance, told analysts yesterday: "We will continue to optimise our locations and opening hours, and expect to close an additional 300 locations in the UK and 150 locations in the US."
Starting in 2019, the retailer closed over 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.
Earlier today, Boots said it had a surge in online shoppers and people opting for own-brand labels has driven up sales over the latest quarter. The pharmacy and retail chain said its own ranges have been flying off the shelves as consumers hunt down value.
It came as its US owner, Walgreens Boots Alliance (WBA), revealed its net quarterly profit more than halved as demand for Covid vaccines and testing declined. Retail sales across Boots jumped by 13.4% in the three months to the end of May, compared to the same period last year.
It was driven up by a boost in online shoppers with sales on its digital platform surging by a quarter over the latest period.
Boots said its “Everyday” essentials label, which includes 60 toiletries and personal care products sold for less than £1.50, saw volume growth of 40% – meaning more products were sold. The company said it reflects people opting for more affordable products, amid a squeeze on households’ disposable incomes.
The group’s pharmacy arm saw sales grow by 5.7%, driven by hay fever products and over-the-counter medication, including the launch of its erectile dysfunction range, Eroxon. It comes as owner WBA last year pulled its plans to sell the UK retailer, after receiving a number of takeover approaches including one valuing it at about £5 billion. The Walgreens merger deal for Boots in 2014 valued the firm at about £9 billion at the time.
Boots refused to be drawn on further details about the store closures, but did talk about its future plans for "evolving" the business.
A spokeswoman said: "The successful Boots transformation plan has created a strong and stable platform for growth and will accelerate further, including ongoing investment into the rejuvenation of the store estate. In addition to uplifting existing stores, over the next year Boots will continue to consolidate a number of stores in close proximity to each other.
"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.”
Sources close to Boots say there are no proposed redundancies – all impacted team members will be offered redeployment. This is part of ongoing store reviews to ensure the "company has the right stores in the right locations" – that can be resourced and invested in (significantly). Sources indicate the 300 figure is over the next twelve months, and following this the company will still have 1,900 stores across the UK. The source said: "This is by no means Boots coming away from the High Street. It is essentially about removing overlapping stores" It is understood that the vast majority of closing stores (>85%) are within 5km of another, with 82% of people within the UK remaining with a 10-minute drive of a Boots store following this.
