Boots’ parent company to close 1,200 stores

The parent company of high street pharmacy Boots is closing 1,200 shops in America over the next three years as it battles a slowdown in consumer spending and low drug reimbursement rates.
Walgreens Boots Alliance (WBA), which operates more than 8,700 stores in the US and 2,000 Boots pharmacies in the UK, said the closures were part of new chief executive Tim Wentworth’s effort to return the group to growth.
He said the 2025 financial year, which began last month, was an important “rebasing year” for the chain. “This turnaround will take time, but we are confident it will yield significant financial and consumer benefits over the long term,” he said.
The announcement of the shop closures came alongside fourth-quarter results, which were slightly ahead of Wall Street’s lowered estimates. The group forecast full-year earnings in line with expectations while Boots, the UK arm, posted the 14th consecutive quarter of sales growth.
Walgreens’ stock, which has fallen by 65 per cent this year and now trades at near 30-year lows, rose 4.6 per cent in early trading on Wall Street. “At first blush, [the forecast] looks better than worst-case scenario,” said Leerink Partners analyst Michael Cherny.
WGA started this financial year by cutting the dividend it pays shareholders. It then cut its full-year profit forecast, having reported net losses of $5.6 billion in the nine months to the end of May.
The pharmacy chain reported a net loss of $3 billion in the fourth quarter, compared to a net loss of $180 million last time. This was primarily driven by a $2.3 billion non-cash writedown connected to its home care unit CareCentrix and investments in China.
The troubles in the US division have created uncertainty around the future of Boots, which has become one of its high-performing assets. In the fourth quarter, retail sales rose 6.2 per cent, driven by skincare and beauty.
Sebastian James, the managing director of Boots UK who is being succeeded by Anthony Hemmerdinger next month, said: “We have delivered a 14th consecutive quarter of market share growth and are seeing positive momentum across the whole business, with healthcare now performing strongly alongside our innovative beauty business.
“As I prepare to hand the leadership baton over to Anthony, I am confident that I am leaving the business in a very solid position, well set up to continue delivering on its exciting transformation. It has been a privilege to lead this business over the last six years and I’m incredibly proud of our team members for everything they do to make Boots as relevant today as it was 175 years ago.”
Since scrapping the sale plan in 2022, WBA has faced repeated calls to break up its business and concentrate on its home market. Last year, WBA began reconsidering a possible sale or listing the UK-based retailer. However, those plans have since stalled, owing to weaker market conditions.
WBA’s struggles become a significant drag on the fortune of Stefano Pessina, its founder and chairman. Bloomberg estimates the businessman’s net worth at $6.4 billion, down from a high of $15.4 billion in July 2015.