Boots posts UK sales boost as footfall increases

Nottingham-headquartered Boots has posted encouraging turnover figures for its first quarter, with sales growing by 4.3%

While Boots’ pharmacy sales decreased 0.9% compared with the year-ago quarter, due to lower demand for COVID-19 services compared to the year-ago quarter, its retail sales increased 8.7% compared to 2021, growing market share for the seventh consecutive quarter.

Meanwhile, footfall improved by around 8% year-on-year.

Boots.com continued to perform well, accounting for 18% of retail sales in the quarter compared to 9% pre-pandemic. In November, Boots.com percentage of sales reached almost 23%, including the biggest ever single day of digital sales for the business, on Black Friday.

Gross profit increased 2.1% on a constant currency basis, reflecting higher UK retail sales growth, partially offset by lower demand for COVID-19 related services in the UK and the adverse gross margin impact of National Health Service pharmacy funding.

Walgreen Boots Alliance (WBA) chief executive officer Rosalind Brewer said: “WBA delivered a solid start to the fiscal year, as we continue to accelerate our transformation to a consumer-centric healthcare company. We’re making significant progress in driving our U.S. Healthcare segment to scale and profit, including the recent VillageMD acquisition of Summit Health. Our core retail pharmacy businesses in both the United States and United Kingdom remain resilient in challenging operating environments. Execution across segments reinforces our confidence in achieving full-year guidance, and our strategic actions are creating long-term shareholder value.”