Boots enters new ownership era with £7bn deal

Boots is set to enter its 178th year under new ownership following the agreement of a £7bn deal this week. The pharmacy and retailer, a long-standing fixture on Britain’s high streets, will be acquired by Wittington Investments. This holding company is controlled by the Weston family, a wealthy Canadian group with deep roots in the retail sector. The family previously owned Selfridges and currently controls several large retailers across the Atlantic. Additionally, the UK branch of the family holds a controlling interest in Associated British Foods, the owner of Primark.

The new owners have indicated that upgrading the portfolio of 1,800 stores is a high priority. While specific details regarding the future appearance of the stores have not been disclosed, industry analysts suggest that investment in the smaller outlets is necessary. Sofie Willmott, an associate director and analyst at GlobalData Retail, noted that business has been strong for Boots in recent years. She observed that new-look beauty areas in larger shops have provided a more department store-like experience. Since opening its first beauty-only store in 2023 at the Battersea Power Station development, the company has redesigned over 180 beauty halls. It has also opened its first fragrance concept store and an opticians dedicated to luxury eyewear. Willmott argued that the new owners should invest in the rest of the chain to address a lack of investment in smaller stores and to create a more consistent look across the network.

Retail veteran Jackie Naghten, who has worked for Top Shop, Marks & Spencer and Debenhams, believes the stores need to become more functional. She specifically highlighted that health hubs should not be squeezed into corners. However, customer sentiment remains largely positive regarding the current layout. Yasmin Trimble, 22, who regularly purchases beauty products, stated that the stores are easy to navigate and possess a cleaner aesthetic. Katie Burrows, 23, also shops at Boots regularly for skincare, first aid and medicine. While she appreciates the convenience, both she and Trimble described the prices of sanitary products as excessively high.

The company’s Advantage loyalty card, launched in 1997, is expected to remain a central part of the customer experience. Naghten described it as the best-value store card in terms of value for money. The card offers three points for every pound spent, with each point worth one penny. Lewis Harrison, 25, finds the card good value but expressed frustration that rewards points can only be applied to a full transaction. He suggested that allowing points to be used for partial transactions, similar to the model at Holland and Barrett, would be beneficial for more expensive purchases. Natalie Berg, founder of consultancy NBK Retail, suggested that the card provides Boots with a unique understanding of its customers. She argued that as artificial intelligence and social media change shopping habits, this direct relationship will become increasingly important for the new owners.

The acquisition also signals a planned expansion of Boots’ healthcare services. As a business that started as an apothecary, health is central to its identity. Today, the retailer offers a wide range of health and wellbeing services, including prescriptions and vaccinations through its in-store pharmacies. Earlier this summer, the company announced it would expand services for weight loss drugs, a sector that has seen a surge in popularity. Naghten noted that the purchase comes at a time when pharmacies are increasingly expected to prescribe more medications and provide health services to ease pressure on GP surgeries and hospitals. She suggested that the Weston family has a clear blueprint for this expansion. While health remains a core part of the business, Naghten added that Boots also has strengths in its No7 make-up and skincare products, which may benefit from increased foot traffic driven by health services.

Despite these strengths, the company faces tough competition. Boots acknowledged in its latest financial results that this competition affected revenues. Shoppers, particularly younger demographics, are increasingly seeking products online through influencer advertisements rather than visiting brick-and-mortar shops. Major competitors such as Superdrug continue to pose a challenge. Additionally, Marks & Spencer announced this week that it would replace a hundred of its own beauty departments with the Sephora brand next year. For some customers, such as 18-year-old Schekina Bourne, convenience dictates their choice of retailer. She stated that while Boots is available in her area, she prefers Superdrug due to its proximity.