The high street pharmacy giant Boots has reported exceptional sales growth, propelled by a surge in Black Friday online shopping, whilst its American parent company’s shares climbed by nearly 20 per cent. The retailer, owned by Walgreens Boots Alliance (WBA), delivered an impressive 8.1 per cent increase in like-for-like retail sales during the quarter ending November.
Digital sales played a pivotal role in this success, rising by 23 per cent year-on-year, culminating in a record-breaking Black Friday performance. The Boots.com platform processed almost five orders per second during peak trading hours, demonstrating the strength of its digital infrastructure. The Boots mobile application now boasts 8.1 million active users, reflecting strong consumer engagement.
The positive results extended beyond retail, with healthcare services showing robust growth. Like-for-like pharmacy sales increased by 10.9 per cent year-on-year, driven by strong demand for flu, Covid-19, and travel vaccinations. This performance marks an improvement from the 10 per cent growth recorded in the previous quarter.
WBA’s overall performance exceeded market expectations, with first-quarter sales reaching $39.5 billion, representing a 7.5 per cent increase compared to the same period last year. Despite reporting a net loss of $265 million, wider than the $67 million loss recorded the previous year, investors responded positively to signs that the company’s turnaround strategy is gaining traction.
Anthony Hemmerdinger, managing director of Boots UK and Ireland, expressed satisfaction with the results but cautioned about upcoming challenges. He highlighted concerns regarding increased cost pressures following the autumn budget, particularly noting the planned rises in employer national insurance contributions and minimum wage implementation scheduled for April.
The parent company, WBA, is currently implementing a significant restructuring programme, including a $1 billion cost-reduction initiative and plans to close 1,200 stores over three years. These strategic moves, coupled with strong trading performance, suggest a positive outlook for the retail pharmacy chain’s future growth trajectory.
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