The Roller Coaster Ride of Boots: Growth Despite Numerous Closures in the USA

In the wake of its parent company's announcement about extensive store closures in the United States, Boots has reported an increase in sales figures. The U.S.-based owner Walgreens Boots Alliance announced that 1,200 American stores will be closed over the next three years, following expanded losses last year. Annual operating expenses exceeded $14.1 billion in August, primarily due to writedowns associated with the VillageMD business. These measures are in the context of a previously ordered closure of around 300 Boots stores in the United Kingdom, which is nearly complete. After the closures, Boots UK will still have about 1,900 stores. Despite the store reduction, Boots UK recorded a sales growth of 2.3% in the fourth quarter, an improvement from 1.6% in the previous quarter. Seb James, the outgoing Managing Director of Boots UK and ROI, praised the recent results as "a strong set of outcomes." Retail sales increased by 6.2% in the quarter, driven by the sale of skincare and premium beauty products. The own-brand sun care range also achieved 20% growth. Boots saw an increase in sales particularly in airport stores, as customers made their holiday preparations. Additionally, pharmacy sales rose by 10% compared to the previous year, thanks to increased demand for NHS and private healthcare services, as well as a record year for travel vaccinations. Mr. James stated: "We have gained market share for 14 consecutive quarters and are experiencing positive momentum across the business. Particularly, the healthcare sector is now showing strong performance alongside our innovative beauty business." Boots is currently focusing on the upcoming high season, including the launch of the Christmas gift range and the approaching Black Friday. James' successor, Anthony Hemmerdinger, formerly a director at Asda and Sainsbury's, will take over leadership in November.