BOOTS has released a major update on its store closure plans, after previously announcing that 300 pharmacies would close for good.
The health and beauty chain announced last year it would close more than 300 branches as part of plans to further develop its brand.
In a new update, Boots UK told The Sun that 253 stores have now closed as part of these plans.
However, it means a further 47 stores will close in the coming months.
While it wouldn’t release a full list of store closures for the coming year, the company says most closures will occur when an affected store’s lease expires.
It comes after Boots reported a rise in sales for its latest quarter as the parent company cut its profit forecasts and announced plans to close stores in the US.
Boots UK reported higher sales across its pharmacy and retail operations in the quarter to the end of May.
However, total sales growth slowed to 1.6% due to store closures over the past year.
Over the past year, Boots has closed around 253 stores, reducing its total store base to 1,900.
On Thursday, parent company Walgreens Boots Alliance (WBA) announced it plans to close more underperforming US stores following a strategic review.
WBA also cuts earnings per share expectations for the fiscal year to August, amid a “challenging US retail environment”.
The group’s total sales were 2.6% higher at $36.4 billion (£28.8 billion) in the quarter to May, as its US operations saw stronger pharmacy sales offsetting a slump in retail sales.
In the UK, comparable retail sales rose 6% year-on-year, with store sales growth driven by increased footfall in travel, beauty and flagship stores.
It was highlighted that airport shops performed particularly well following recent renovations.
Meanwhile, digital revenue grew 13.8% over the period as it benefited from investments in its digital revenue Boots app that offers shoppers personalized offers.
Boots also reported stronger sales growth in its pharmacy division, which posted a 5.8% increase amid increased demand for healthcare services.
Travel and vaccination services saw high demand ahead of the summer holidays, the company said.
Sebastian James, CEO of Boots UK and Republic of Ireland, said: “This is another set of consistently strong results for Boots.
“I’m pleased to see our positive momentum continuing across the business, with both retail and healthcare sales increasing and a thirteenth consecutive quarter of market share growth.
“We continue to focus on making exciting new brands and services accessible, while focusing on value and rewarding loyalty.
“We are committed to providing customers with a great experience no matter how they shop with us.”
Why are retailers closing their stores?
EMPTY shopping streets are an eyesore on many British high streets and are often a symbol of the decline of a city centre.
Ashley Armstrong, business editor of The Sun, explains why so many retailers are closing their doors.
In many cases, retailers are closing their stores because they are no longer making as much money as they used to due to the rise of online shopping.
Falling retail sales and rising staff costs have made it even more expensive for stores to stay open. In some cases, retailers are closing a store and opening a new one across a high street to show how a city has changed.
The problem is that when a large store closes, the number of customers in the local high street decreases, which risks more stores closing.
Retail parks are becoming increasingly popular with shoppers who want easy, free parking at a time when councils have increased parking charges in cities.
Many retailers, including Next and Marks & Spencer, have closed their high street stores and instead relocated larger stores to better performing retail parks.
Boss Stuart Machin recently said that when the company moved an outdated store in Chesterfield to a new large store in a shopping centre half a mile away, sales in the area increased by 103 per cent.
In some cases, stores have closed when a retailer went bankrupt, as in the case of Wilko, Debenhams Topshop, Dorothy Perkins and Paperchase, to name a few.
What is increasingly common is that when a chain goes bankrupt, a rival retailer or private equity firm takes over the intellectual property rights so they can own the brand and sell it online.
If customer demand is high, they might open a handful of stores, but rarely are there the same number of stores or stores in the same locations.
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Since 2019, Boots has been engaged in a major restructuring of the business, called the Boots Transformation Plan.
At its launch in 2019, the brand already had 200 stores scheduled for closure.
The closures took place over a period of eighteen months.
Many of the closures were because they were loss-making and two-thirds of them were within walking distance of each other, the chain said.
In 2020, Boots announced that 48 opticians would close, resulting in the loss of 4,000 jobs.
Last July, Boots announced plans to close a further 300 stores.
With this measure, the chain wants to reduce the number of stores from approximately 2,200 to just 1,900.
To date, 253 of these store closures have occurred and a further 47 stores will close later this year.
The pharmacy chain employs more than 52,000 team members and says the closures will not result in layoffs.
Boots’ parent company said in WBA’s quarterly financial report earlier this week that it “plans to reduce its presence by up to 650 Boots stores”.
Since the launch of the Boots Transformation Plan in 2019, 581 Boots stores have closed permanently.
However, it is not all doom and gloom on the shopping streets.
Several major retailers have plans to increase their store numbers.
Which retailers are opening new stores?
IT’S not all bad news on the high street, as several retailers are bucking the trend and opening stores.
- German discounter Aldi has announced that it will open 35 new UK stores this year. The openings are part of Aldi’s long-term goal of operating 1,500 stores in the UK.
- Asda has opened hundreds of convenience stores as it looks to compete with major players Tesco and Sainsbury’s.
- Purepay Retail Limited, the parent company of Bonmarché, Edinburgh Woollen Mill (EWM) and Peacocks, has said it plans to open 100 new high street stores over the next 18 months.
- Home Bargains has said it wants to “eventually have between 800 and 1,000 stores open”.
- Primark is also opening new branches and investing and renovating more than a dozen existing stores.
- Lidl will open hundreds of new stores in the United Kingdom.
- Screwfix is to open 40 new stores across the country as owner Kingfisher looks to expand the DIY brand’s national presence.
- Superdrug has plans to open 25 new stores in the coming months.
- Tesco has announced plans to open a further 70 stores in the UK over the next year as part of major expansion plans.
- WHSmith has shifted its focus to the travel side of its business, with plans to open new locations at airports, train stations and hospitals.