Boots stores face axe after profit warning

BOOTS has warned it could close shops and axe jobs after its parent company issued a shock profit warning.

The chain’s American parent, Walgreens Boots Alliance, yesterday said it had suffered its ‘most difficult quarter’ since its formation. It warned it needed to take ‘decisive steps to reduce costs in the UK’ – with a Boots spokesman saying its shops were being reviewed.

It comes after the company previously said 350 jobs were at risk at its Nottingham headquarters.

Boots employs about 60,000 staff and has 2,500 UK shops. It said sales fell 1.3 per cent in the three months to February.

At the same time, Walgreens – itself a large pharmacy chain in the US – said profits had been hit by tough competition and falling prices in the drugs market. Stefano Pessina, the company’s chief executive, said: ‘While we are not the only company that has been impacted by the marked change in the environment, that’s not an excuse.’

Overall Walgreens said it now wanted to save £1.1billion by 2022 – up from its previous target of around £750million.

Walgreens Boots Alliance was formed from a major merger five years ago between Walgreens and Boots Alliance. Boots itself was founded in 1849.