High street pharmacy and retailer Boots has announced plans to reduce its number of stores from 2,200 to 1,900 by closing 300 locations. The decision aims to enhance efficiency by shutting

down stores that are in close proximity to each other. This move comes despite a 13.4% increase in retail sales during the three months leading up to May compared to the previous year.

Boots stated that consolidating stores allows them to concentrate resources where needed and invest more effectively in individual stores, creating a modern and reliable shopping experience. However, the closures may put thousands of jobs at risk, as the company currently employs around 52,000 staff members.

James Kehoe, the global chief financial officer at Walgreens Boots Alliance, Boots' parent company, announced plans to close an additional 300 locations in the UK and 150 in the US. The closures are expected to take place over the next year and will primarily affect stores that are currently operating at a loss.

In the past, Boots announced the closure of over 200 stores over an 18-month period, starting in 2019. Many of these closures were due to financial losses, with two-thirds of them being in close proximity to other stores. In 2020, Boots also closed 48 opticians, resulting in the loss of 4,000 jobs.

The decision to close stores comes amid speculation that Walgreens Boots Alliance is considering a potential breakup. Other major retailers, including Argos and Lloyds Pharmacy, have also recently announced store closures. The decline of high streets has been a significant concern, with higher vacancy rates reported in the North compared to the South of the UK.

Despite the challenges faced by the high street, Boots experienced a notable increase in retail sales. However, the company believes that streamlining its operations and focusing on key locations will contribute to its long-term success in an evolving retail landscape. Photo by  Kenneth Allen, Wikimedia commons.