Covid blamed for further dip in Boots sales in Q4

Latest

Covid blamed for further dip in Boots sales in Q4

In Latest

The Covid-19 pandemic continued to hurt Boots UK’s profitability between June and August this year, parent company Walgreens Boots Alliance has said. 

Publishing its financials for the fourth quarter of its fiscal year, WBA said that while “favourable phasing of NHS funding” had helped to offset lower demand for prescriptions, non-pharmacy sales were massively down (29.2 per cent) against the same period last year.

Sales, operating margin and operating income in WBA’s retail pharmacy international division were all down significantly compared to the previous year, much of this driven by weak performance at Boots.

WBA executive vice president James Kehoe said there were some signs of recovery in the fourth fiscal quarter. International pharmacy sales were down 15.4 per cent on 2019 levels, which he argued was an improvement on the 26 per cent year-on-year drop observed in the third quarter.

“As targeted marketing activities were implemented we saw some recovery in footfall to our flagship and destination stores,” Mr Kehoe said, claiming that marketing “is driving better sales performance than we had anticipated”.

Meanwhile, Boots.com continues to see “exceptional” growth said Mr Kehoe, with 155 per cent sales growth compared to the same period in 2019 – up from 78 per cent sales growth in Q3.

“One of our top priorities is to turn around Boots UK and return it to profitable growth,” he said, explaining that the UK business “is taking swift actions on both sales and cost reduction” – Boots is in the process of axing over 4,000 employees – as well as investing in the No7 brand. 

Mr Kehoe noted that the company is heading “into our peak trading season”. 

Outgoing WBA CEO Stefano Pessina said: “I am pleased to report results that came in at the high end of our expectations as we continue to adapt and transform our business model to changing customer needs.

“Despite uncertainty amid the global Covid-19 pandemic, we are seeing gradual improvement in key US and UK markets an continued strong performance in our wholesale businesses. I’m also encouraged by the accelerating growth in our e-commerce platforms.”

Boots is also “playing a key role” in the NHS Covid-19 testing programme, said WBA, having helped carry out at least a million tests over 52 testing sites.

Record my learning outcomes

Latest

Inspiring stories related to health, fitness and the pursuit of wellbeing

Share:

More like this

bookmark_icon_off
Latest

Locate a Locum Learning launched

Locate Learning launches today, increasing members access to extensive learning library.

1 Min Article

bookmark_icon_off
Latest

MHRA issues thermometer warning

MHRA issues thermometer warning after increase in the number of unreliable products available in the UK. 

1 Min Article

bookmark_icon_off
Latest

Nearly 90 per cent of adults would have tested positive for Covid-19 antibodies in June, says ONS

ONS estimates vast majority would have had antibodies in mid-June.

1 Min Article

bookmark_icon_off
Latest

New NHS clinics to provide pelvic floor support for women

Pregnant women and new mums are to receive support from new NHS clinics.

1 Min Article

bookmark_icon_off
Latest

NICE recommends mental health support for people with acne

Mental health support is key in managing acne vulgaris, says clinical watchdog.

1 Min Article

bookmark_icon_off
Latest

RPS calls for action on women's health inequalities

Action is needed to reduce the inequalities faced by women when accessing health services, the Royal Pharmaceutical Society has said. 

1 Min Article

bookmark_icon_off
Latest

Reports of potential bidding war over LloydsPharmacy

LloydsPharmacy could be the target of a three-way bidding war fought among financial investors over the next few weeks, it has been reported.

1 Min Article

bookmark_icon_off
Latest

Dukes to leave PSNC in September

PSNC chief executive Simon Dukes will leave his post at the end of September after just over three and-a-half years in the role.

1 Min Article

bookmark_icon_off
Latest

NHSE: Pharmacy must speak 'as one' to gain power

Community pharmacies need to speak 'as one' to gain greater influence within primary care, a senior NHS England official has said. 

1 Min Article

bookmark_icon_off
Latest

E-cig loophole puts minors at risk, Government told

A charity criticises the government for failing to close a loophole allowing companies to hand out free e-cigarettes to under-18s. 

1 Min Article

bookmark_icon_off
Latest

Lloyds pulls nasal spray over 'bold' Covid claims

LloydsPharmacy has "paused" sales of a £15 nasal spray that claims to neutralise the coronavirus before it can make people ill.

1 Min Article

bookmark_icon_off
Latest

DH sets ambitious targets for winter flu programme

The Department of Health and Social Care announces that it aims to vaccinate 85 per cent of people aged 65 and over against influenza.

1 Min Article

bookmark_icon_off
Latest

Wright review group to hold focus groups to form proposals

The Wright review steering group will hold a series of online focus groups and workshops this month and in August.

1 Min Article

bookmark_icon_off
Latest

Two Solihull pharmacists jailed for illegal supply of POMs

Dean Dookhan and Narvinder Nandra pleaded guilty to two charges concerning the illegal supply of 21,000 Zolpidem pills.

1 Min Article

bookmark_icon_off
Latest

Pharmacist to run London marathon for charity

Pharmacist Mohammed Hussain will run the London marathon to raise money for Pharmacist Support.

1 Min Article

bookmark_icon_off
Latest

Boots opens flu jab bookings as demand soars

Boots says it has opened bookings for its winter flu jab service amid reports of soaring demand. 

1 Min Article

bookmark_icon_off
Latest

Running app downloaded over five million times this month

The Couch to 5K app contains advice and information from a celebrity coach to help users record their progress. 

1 Min Article

bookmark_icon_off
Latest

Drug companies fined £260m for "excessive and unfair" price hikes to hydrocortisone tablets over a 10 year period.

1 Min Article

bookmark_icon_off
Latest

IBS sufferers worried about return to workplace

People with irritable bowel syndrome are anxious about lockdown easing and the prospect of going back to the workplace contributing to their symptoms.

1 Min Article

bookmark_icon_off
Latest

GPhC too soft on corporate multiples claims PDA

The GPhC is disproportionately tough on individual registrants compared to pharmacy owners and premises, the PDA has claimed. 

1 Min Article

Recommended Learning

bookmark icon off
Sponsored education

Managing dry eye and blepharitis

Discover the link between dry eye and blepharitis and learn how to help customers effectively manage these conditions.

10 Min Module

bookmark icon off
Sponsored education

Common Childhood Illnesses

This interactive video will test and reinforce your knowledge so you can confidently advise parents on common childhood illnesses, such as teething, earache, coughs and colds.

10 Min Module

bookmark icon off
Sponsored education

Bacterial vaginosis (BV): Test and treat

This short module is designed to help you have conversations with customers about Canestest and Canesbalance Bacterial Vaginosis Vaginal Gel.

10 Min Module

bookmark icon off
Sponsored education

Next-level parasite protection for dogs

Explore the FRONTLINE Tri-Act® active pack to learn about next-level parasite protection for dogs.

10 Min Module

bookmark icon off
Sponsored education

Understanding abdominal pain, cramps and IBS

This short video explains the symptoms of irritable bowel syndrome (IBS) and how it differs from abdominal cramps to help you recommend a suitable product for your customer’s needs.

3 Min Module

bookmark icon off
Sponsored education

Advising on stimulant laxatives

Safely recommend the most effective laxative for every customer with constipation

15 Min Module