Boots revenues rise across the board as Walgreens axes sale plans

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Boots has posted a rise in sales across all categories, driven by market share gains in beauty.

Boots Kew

Boots reported that footfall was up 45% compared with last year

Boots UK sales were up 13.5% in the third quarter, against a comparable period last year.

The health and beauty retailer said comparable retail sales were up 24%, while online sales more than doubled compared with pre-pandemic levels, representing 13% of retail sales for the quarter.

Its app also grew over the period, with 5 million active users, up 32% year on year.

Comparable pharmacy sales stayed broadly flat year on year, but pharmacy services grew 22%, reflecting greater demand for its online healthcare offer.

Boots added that footfall was up 45% compared with last year, driven by a strong return to its flagship stores and travel locations.

Boots managing director Seb James said: “The execution of our transformation programme and a sharp focus on expanding our key categories of healthcare and beauty has driven strong sales and market share growth and further strengthened our position as the UK’s leading health and beauty retailer.

“Significant investment in both our digital platforms and in our stores is expected to drive continued market leading growth. As store footfall returns to pre-pandemic levels and with cost-of-living pressures increasing, the launch of our Price Advantage scheme, the expansion of our own-label product range and our commitment to freeze prices on 1,500 essential products have been particularly well received by customers.”

The results come after parent company Walgreens Boots Alliance announced that it was scrapping plans to sell the Boots arm of its business after suitors failed to match its £7bn price tag.

Walgreens posted a decline in sales in the third quarter, down 4.2% to $32.6bn (£26.8bn), while its operating income swung to a loss of $320m (£263m) against an income of $1.1bn last year (£903m).

Walgreens said it administered 4.7 million vaccines and 3.9 million tests in the third quarter.

Walgreens chief executive Rosalind Brewer said: “WBA delivered strong execution across operating segments and against very robust growth last year. Third-quarter results were broadly in line with our expectations, demonstrating the resilience of our business through our deep community connections and relevance to consumers.

”With our decision to conclude the Boots strategic review, I firmly believe that our strategic actions are working to deliver long-term shareholder value.”