Boots owner Walgreens has laid down its plans for the retailer and insisted the UK chain is “very important” to the business.
The US giant opted to keep Boots last month, abandoning its plans to sell the chain, which has become a standout performer across the group. It comes as Walgreens has struggled in its main US market, slashing its profit outlook and unveiling store closure plans.
Ornella Barra, the head of Walgreens’ international and wife of executive chairman Stefano Pessina, told The Sunday Times: “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. At the right time, who knows… it’s important to be open to everything.”
Ornella insisted that Walgreens would continue to invest in Boots and has recently signed off a three-year investment plan that will total hundreds of millions of pounds.
This is on top of the £527m it has invested in Boots over the past three years, she said.
Revamping stores is a key focus for the retailer. It has already introduced new beauty halls or healthcare departments in 450 of its larger stores and will upgrade a further 70 stores this year, followed by 100 more next year.
Boots UK retail director Anthony Hemmerdinger said: “We would accept that not all our stores are at the standard we want them to be, but we have an aspiration to have a great Boots store in every town and no stores that we are ashamed of.”
Boots has also grown its beauty range to include more than 500 brands and now responds faster to beauty trends, such as the current demand for South Korean skincare products.
It has also opened a beauty-only store in Battersea power station late last year, with more likely coming in other major cities.
The retailer has also ramped up its digital business since the pandemic, with app users soaring from one million pre-Covid to more than seven million today..
“Five or six years ago, we were among the worst in terms of our digital presence, but now we are in the pack. When the new platform goes live in a year’s time, we will be on the leader board,” said Boots outgoing boss Seb James said.
James, who has helped lead the UK retailer to 13 quarters of consecutive growth, revealed he was leaving the business last month as he looks to take the helm of Veonet, one of Europe’s largest ophthalmology chains.
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Barra said there had been “plenty of interest” in James’ role from external and internal candidates and that she hopes to conclude the search in the near term.
In healthcare, Boots is hopeful that the new Pharmacy First scheme, which aims to relieve pressure on GP surgeries by allowing pharmacies to diagnose and prescribe medication, will provide a boost.
Since the scheme launched in January, Boots has carried out more than 20,000 consultations a month for which it is paid £15 per consultation.
Boots is also planning to use its data to help identify and recruit participants for clinical trials.
It is close to forming partnerships with research institutes and healthcare companies, with the first tie-up due to be announced in the coming weeks, The Sunday Times revealed.
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