Boots has announced plans to close 47 more stores, bringing the total number of closures to 300.
Meanwhile, the company's managing director, Sebastian James, will leave after six years.
Boots Store Closures Continue
Boots UK has confirmed to The Sun that 253 stores have already closed as part of their ongoing plan. The company anticipates closing an additional 47 stores in the next few months.
Boots did not release a complete list of which stores are slated to close this year but indicated that most closures will occur when the leases of the affected stores expire.
This update follows Boots reporting an increase in sales for the latest quarter, despite its parent company, Walgreens Boots Alliance (WBA), reducing profit forecasts and announcing closures of US stores.
Boots UK noted a rise in sales across its pharmacy and retail sectors up to the end of May. However, the overall growth in sales slowed to 1.6%, affected by the store closures over the past year.
Previously, Boots reduced its store count from approximately 2,200 to 1,900 locations, closing stores primarily where another store was.
On Thursday, WBA revealed plans to close more underperforming US stores following a strategic review. The company also revised its earnings per share guidance for the financial year ending in August, citing a "challenging US retail environment."
Since launching its Transformation Plan in 2019, Boots has targeted significant restructuring, initially earmarking 200 stores for closure. By 2020, it also shut down 48 opticians, affecting 4,000 jobs.
Last July, Boots announced plans to further reduce its store count from 2,200 to 1,900, with 253 stores already closed and 47 more expected to shut this year. Despite these closures, no redundancies are anticipated among the 52,000 team members.
Walgreens Boots Alliance, Boots' parent company, also plans to close up to 650 stores potentially. Since 2019, 581 Boots stores have permanently closed.
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Boots Managing Director Sebastian James to Depart
Amidst closures, Boots has announced that Sebastian James, its managing director, will step down after six years to pursue a new opportunity in the healthcare sector, as National World reported.
James, who has been at the helm since 2018, will remain with the company until November while Boots, a US-listed Walgreens Boots Alliance subsidiary, searches for his successor.
James is set to lead Veonet, a European eye surgery firm that owns SpaMedica in the UK. Before joining Boots, he was the head of the electrical retailer Dixons, now known as Currys. During his tenure at Boots, James led the company through 13 consecutive quarters of market share growth.
His decision to leave coincides with Walgreens halting plans to sell or float Boots for the second time in two years. James expressed that leading Boots and supporting its transformation has been a pleasure.
According to the Independent, Ornella Barra, the international chief operating officer at Walgreens Boots Alliance, has expressed gratitude towards Sebastian James for his dedication and leadership at Boots.
Barra credited James and the Boots leadership team for building a strong foundation for success and sustainable growth. She wished him well in his future endeavors.
Meanwhile, Boots UK saw a 6% rise in retail sales, bolstered by higher foot traffic in travel, beauty, and flagship stores. Airport stores showed notable improvement after renovations. Digital sales grew by 13.8% due to enhancements in the Boots app.
The pharmacy sector also experienced a 5.8% growth, driven by increased demand for healthcare services, particularly travel and vaccination services.
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