Boots to close 200 stores in new blow to UK high street

 

Boots has confirmed plans to close 200 stores but says the "overwhelming majority" of staff affected will be redeployed. The health and beauty chain said on Friday that closures will take place over the next 18 months.

Shutting 200 shops would equate to just under 10% of the Boots UK standalone outlets.

US owner Wallgreen Boots Alliance said it could not confirm specific stores earmarked at this stage, as it had only just started the process.

Boots UK's managing director Sebastian James said: "WBA has now approved an outline plan to consolidate around 200, principally local pharmacy, stores where we have a large number within close proximity.

"We believe this is the right thing to do as it means that we can invest more in staffing those stores while not reducing our 90% coverage within a 10-minute drive of a Boots.

"We do not anticipate a significant effect from this activity to colleagues as we will redeploy the overwhelming majority to neighbouring stores.

"At the same time, we continue to open new stores where we believe there are communities that would benefit from a new Boots - for example the new Covent Garden flagship, creating 130 new jobs, which opened yesterday."

Boots' announcement confirmed Sky News' story last month that the company had placed more than 200 outlets under review for possible closure over the next two years.

WBA said in April that it was undertaking a review of its Boots The Chemist estate "focusing on low-performing stores and opportunities for consolidation", although it declined to specify then the number that it was considering shutting.

An insider told Sky News that some of the affected sites would close as their leases expire, while others would be part of a consolidation in towns that currently have two separate Boots stores.

With around 56,000 employees, Boots is one of the UK's largest retailers by store numbers and also trades from about 1,100 opticians and hearing care shops which use its brand.

The company joins other major high street giants reviewing their store portfolios, as consumers' shift to digital channels accelerates.

Some of the biggest names in British retailing, including Debenhams, Homebase, Mothercare and New Look, have all turned to formal restructuring processes to reduce outlets and cut rents across their estates.

Boots confirmed its plan to close stores days after it stopped offering plastic bags at some of its checkouts, replacing them with brown paper ones.