Boots sees UK sales growth as parent company announces US store closures

27 June 2024 , 13:42

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Boots UK has reported a surge in demand for travel and vaccination services (Image: PA Archive/PA Images)

Boots has unveiled an increase in sales for the most recent quarter, while its parent company revised its profit predictions and announced closures of US stores. .

In the quarter ending May, Boots UK reported growth in sales across its pharmacy and retail sectors. However, the total sales experienced a slowdown to 1.6% due to the impact of store closures during the past year.

Over the preceding year, about 300 Boots shops have been shut down, reducing its overall branches to approximately 1,900. Walgreens Boots Alliance (WBA), the parent company, revealed plans on Thursday to close more US stores that are underperforming following a strategic review.

Amid a "challenging US retail environment", WBA also cut its earnings per share guide for the financial year up until August. The quarter up to May saw the group's overall sales rise by 2.6%, amounting to $36.4billion (£28.8billion), with the US branch experiencing stronger pharmacy sales which offset a slump in retail.

Comparable retail sales in the UK registered a yearly growth of 6%, with in-store sales experiencing an upward trend driven by higher footfall in travel, beauty and flagship stores. Its refurbished airport branches performed particularly well.

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Digital sales went up by 13.8% over the period due to an increased investment into the Boots App, which offered personalised deals to shoppers. . An uptick in the use of healthcare services led to a rise of 5.8% in the sales of Boots' pharmacy arm.

Boots UK has reported a surge in demand for travel and vaccination services as people prepared for their summer getaways. Sebastian James, the chief executive of Boots UK and Republic of Ireland, said: "This is another set of consistently strong results for Boots. I am pleased to see our positive momentum continue across the whole business, with both retail and healthcare increasing sales and a 13th consecutive quarter of market share growth."

"We continue to focus on making exciting new brands and services accessible, whilst focusing on value and rewarding loyalty. We are committed to delivering a fantastic experience for customers however they shop with us."

Lawrence Matheson