Online shoppers and people opting for own-brand buys and No7 skincare have helped increase revenues at Boots. Sales at the retail and pharmacy giant had a welcome boost over the last three months thanks to shoppers snapping up own label products in a bid to get better value.
However its US owner Walgreens Boots Alliance (WBA), revealed it planned to shut 300 Boots stores over the next year under plans to "consolidate" the business. Most of the closures will be stores within close proximity of one another.
The BBC said it understood there would be no redundancies with staff offered work at nearby stores. There will be 1,900 branches left across the UK from a base of 2,200.
Retail sales across Nottingham-headquartered Boots jumped by 13.4 per cent 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.
More consumers are shopping at Boots more often, the chain said. It marks a shift from other major personal care retailers like Unilever which have seen sales boosted by higher prices rather than people buying more.
Beauty products, especially skincare, were best sellers over the latest period with sales up 18% year on year, and May recording the biggest week for the category outside of Christmas.
Its in-house brand No7 also sold well during the quarter, as well as suncare range Soltan amid seasonally warmer weather.
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.
Seb James, the managing director of Boots UK and ROI, said: “Our focus on offering our customers the best in healthcare and beauty, together with a continued commitment to great value, has been well received, and it is lovely to see more people choosing to shop with Boots.
“It is particularly pleasing to see our own brands proving popular, including an exceptional No7 performance.”
