Boots sales improve as parent firm shuts 1,200 US shops

Boots has posted stronger sales as its parent firm revealed mass store closures across the US.

US-based owner Walgreen Boots Alliance said it will shut 1,200 US stores over the next three years after losses widened for the past year.

Annual operating losses more than doubled to 14.1 billion US dollars for the year to August as it was hit heavily by an impairment charge linked to its VillageMD business.

It is in addition to a raft of recent store closures across Boots, which has almost completed a programme of roughly 300 closures across the UK.

The pharmacy and retail business will have around 1,900 stores after the closures are completed.

However, this represented an improvement on 1.6% growth in the previous quarter.

Managing director of Boots UK and ROI Seb James, who will step down next month, hailed the latest performance as a “a strong set of results”.

Boots UK said comparable retail sales were 6.2% higher for the quarter, driven by skincare and premium beauty products.

It said stores also witnessed a jump in sun-care sales, with its own label Soltan range witnessing 20% growth against the same quarter a year earlier.

Airport stores also saw good growth as customers shopped for their last-minute holiday essentials, the retailer said.

Pharmacy sales were up 10% year-on-year due to increased demand for NHS and private healthcare services while it witnessed a record year for travel vaccinations.

Mr James said: “We have delivered a 14th consecutive quarter of market share growth and are seeing positive momentum across the whole business, with healthcare now performing strongly alongside our innovative beauty business.

“We’re laser focused on preparations for our peak trading period, with our Christmas gifting range landing in stores and Black Friday just around the corner.

“As I prepare to hand the leadership baton over to Anthony (Hemmerdinger), I am confident that I am leaving the business in a very solid position, well set up to continue delivering on its exciting transformation.”

Mr James will be replaced by Mr Hemmerdinger, a former senior director of Asda and Sainsbury’s, in November.