Boots orders staff back to the office five days a week

Chemist reverses its policy on home working ahead of a potential return to the London Stock Exchange

BOOTS has ordered thousands of staff to return to the office five days a week as bosses prepare the retailer for a potential stock market float.

Seb James, Boots’ UK managing director, sent letters to employees earlier this week informing them of the home-working crackdown, as he vowed to make the business “more effective”.

Head office workers in London, Nottingham and Weybridge will be affected by the change, marking a reversal of Boots’ previous policy that encouraged staff to attend the office three days a week.

It comes as Boots gears up for a return to the London Stock Exchange after 17 years of private ownership, potentially achieving a £7bn valuation that would propel the business back into the FTSE 100. Tim Wentworth, the chief executive of Walgreens Boots Alliance, Boots’ US parent company, said in January: “Everything is on the table to enable more shareholder value.”

Upon announcing the new policy, which will come into force in September, Mr James said: “I have been very heartened by the way people have embraced the three-days-a-week model and I think that you will agree that the office is a much more fun and inspiring place on those days.

“The informal conversations, brief catch-ups and ability to meet in groups in person have been far more effective – and better for our unique Boots culture – than the enforced formality of remote meetings. I know that has been true for me.”

Boots employs 8,000 people at its Nottingham headquarters, which accounts for 15pc of its 52,000-strong British workforce.

In an effort to ease tensions with staff, Mr James said the company will upgrade its offices over the coming months. This will include creating more quiet space, enhancing Wi-fi and improving Boots’ food for staff. Boots has enjoyed a strong recovery in sales since a drop-off during the pandemic, as the retailer said earlier this year that its market share grew for the 11th successive quarter in the three months to November.

Boots’ potential return to the stock market would deliver a boost to the Square Mile, which has been under pressure following an exodus of high-profile companies.

Walgreens had previously sought to offload Boots in a £5bn sale but abandoned the process in 2022 after an “unexpected and dramatic change” in financial markets. To cut costs, the retailer has recently vowed to shut about 300 stores by June – bringing its total number down to 1,900 in the UK.

A slimming-down of operations, alongside Walgreens’ decision to offload Boots’ pension scheme to Legal & General for £4.8bn in November, has fuelled talk that the retailer is being prepared for a float.

Jonathan De Mello, a retail consultant and founder of JDM Retail, said:

‘Ability to meet in person is far more effective than the enforced formality of remote meetings’

“Creating a lower-cost, more streamlined business ahead of an IPO or sale is clearly the right thing to do – but Boots must not forget to invest in their stores.”

Boots’ crackdown on home working is the latest example of companies shifting back to the office post-pandemic.

Deutsche Bank, which employs about 6,000 people in London, said last month that managers will be required to be in the office at least four days a week, while junior staff must be in the office at least two thirds of their time.

Laing O’rourke, the HS2 contractor, also ordered staff back to their desks last month, complaining that its offices were “too often sparsely populated”.

Meanwhile, executives at the auditor EY have begun monitoring data on how often their employees swipe into buildings to clamp down on office shirkers.

A Boots spokesman said: “We are asking team members to make the office their usual place of work from Sept 1. We really value the team spirit that comes with being together in person.”