Unhealthy sales slide for Boots

Boots has suffered a dip in sales in its home market but its Us-based owner hailed overall growth for the past year.

The UK retail business saw sales fall 2.1 per cent over the fourth quarter to the end of August, after like-for-like pharmacy sales slipped 1 per cent.

Sales were affected by lower volumes and a fall in NHS funding, as Boots struggled amid “challenging” retail conditions.

Parent company Walgreens Boots Alliance (WBA) saw its group annual sales rise 4.1 per cent to $136.9 billion (£106.7bn) as it was buoyed by a strong fourth quarter which beat expectations. Sales for the three months to 31 August nudged up 1.5 per cent to $34bn.

In July, Boots confirmed plans to shut some 200 locations over the next 18 months, placing thousands of jobs at risk.

Seb James, UK managing director, said the store closures would primarily focus on local pharmacy branches in areas where it has other stores nearby.

The US retail pharmacy division posted a 2.1 per cent hike in sales to $26bn in the latest three-month period as the volume of prescriptions increased against the same period in 2018.

However, the group was pressurised by falling international sales, which dropped 6.3 per cent to $2.7bn as the business was weighed down by currency weakness.

Stefano Pessina, executive vice chairman and chief executive of WBA, said: “We are pleased to report fiscal 2019 results in line with our previously stated guidance despite a challenging operating environment.

“We are also making progress on our four strategic priorities, which we remain confident are positioning us to deliver long-term growth.”

Boots said it had maintained its market share as sales at high street competitors had also come under pressure.