- Boots and Walgreens, prominent pharmacy chains, are set to close a total of 450 branches across the UK and the US.
- Parent company Walgreens Boots Alliance aims to optimize its store locations to adapt to evolving market conditions.
- The decision comes as the pharmacy group revises its earnings forecast downwards due to reduced demand for Covid-related products and a shift towards more cautious consumer spending.
In a strategic move to adapt to changing market dynamics, pharmacy giants Boots and Walgreens have announced plans to close a combined total of 450 stores across the UK and the US. Walgreens Boots Alliance, the parent company, aims to optimize its store locations to streamline operations and enhance efficiency.During an earnings call with analysts, James Kehoe, Executive Vice President, and Global Finance Chief, confirmed the upcoming closures. He explained, “As you have seen, we are accelerating our portfolio optimization to further simplify the business.” The decision follows a downward revision of the company’s earnings forecast, attributed to weakened demand for Covid-related products and a shift towards more cautious and value-driven consumer behavior.
Boots, a prominent fixture on UK high streets, will shutter 300 stores across the country, while Walgreens plans to close an additional 150 branches in the US over the next year. However, the closures are designed to minimize disruption for employees, as all affected staff will be offered positions at nearby stores. This strategic consolidation will allow the company to focus its resources and investments more acutely on individual locations.
Notably, Walgreens had previously abandoned plans to sell Boots, citing instability in the financial markets. The decision to retain the chain showcases the company’s commitment to the UK high street, despite recent collapses of well-known retailers such as Debenhams and Arcadia, the owner of Topshop.
By optimizing its store portfolio, Boots and Walgreens aim to adapt to evolving market conditions and align their operations with the changing preferences and behaviors of customers. While the closures signify a shift in strategy, the pharmacy group remains dedicated to serving its customers and maintaining a strong presence in both the UK and the US.