Boots warns of store closures after ‘most difficult’ trading period in its history

Jobs could be under threat at high street pharmacy Boots after its owner warned it has just experienced the “most difficult” quarter in its history.

Walgreen Boots Alliance said it will take “decisive steps” after sales at Boots’ UK stores fell by 2.3% over the quarter, compared to the same period last year. Overall, global turnover slumped by 23.3%.

The disappointing results will lead to Boots reviewing its almost 2,500 UK stores as it looks for “opportunities for consolidation.”

Executive vice chairman and CEO Stefano Pessina said: “The market challenges and macro trends we have been discussing for some time accelerated, resulting in the most difficult quarter we have had since the formation of Walgreens Boots Alliance. During the quarter, we saw significant reimbursement pressure, compounded by lower generic deflation, as well as continued consumer market challenges in the US and UK. While we had begun initiatives to address these trends, our response was not rapid enough given market conditions, resulting in a disappointing quarter that did not meet our expectations.”

The new comes after Boots revealed in February that it plans to cut 350 jobs at its Nottingham head office as part of plans to cut costs there by 20%.

Meanwhile, Usdaw is calling on Walgreens Boots Alliance to enter into talks with the union after the company warns of UK store closures.

Daniel Adams, Usdaw national officer says: “This is clearly very worrying news for the staff in all Boots stores and the Union will be doing all it can to support members during this difficult time. We would urge the company to engage with Usdaw as the trade union for Boots staff to ensure that all avenues to minimise job losses are explored during this critical time.”