Boots has announced that it will close 200 stores in the United Kingdom over the next 18 months as many of the stores slated to be closed are losing money and most are located within walking distance of another location. This makes it the latest big retailer to reduce cost.
“There is no doubt that trading conditions are tough………. and healthcare and retail are facing challenging reality. Boots is not immune to these pressures,” said Sebastian James, Walgreens Boots Alliance (WBA) managing director.
Mark and Spencer, Debenhams, House of Fraser and Maplin and other UK retailers have announced store closures.
Boots has over 2,400 stores in the UK, meaning that about 8% of existing stores will be closed, expecting a 1% hit on revenue as a result of the closures.
It is reported on Thursday that comparative store sales dropped to 2.6% in its fiscal third quarter. The company said that “overwhelming majority” of workers would be moved to other locations following the closure and plans to make stores more personalised.
Boots which sells health and beauty products has launched a prescription app for its pharmacy customers.
Walgreen Boots Alliance employs over 415,000 people and has presence in over 25 countries.
“We are still a very successful company with a phenomenal presence in the United Kingdom, but we need to take some tough decisions to transform the fundamentals of our business,” said James.
Culled from CNN