The American owner of Boots is reportedly considering putting its pharmacy chain on the market for an estimated £10 billion next year.
The US retail giant, Walgreen Boots Alliance (WBA), is lining up Goldman Sachs advisers to look into a potential sale of all 2,200 UK stores, according to Sky News.
In a statement, WBA said it does not comment on “market speculation”, adding that Boots, which employs 55,000 people is “an important part” of the group.
However, the company said it is “accurate” that the WBA announced a “renewed set of priorities and strategic direction” for the group in October, which includes a more pointed focus on North America and on healthcare.
“As underlined during the last WBA investor conference, the group continues to be very pleased with the performance of Boots and the international division as a whole,” the group said.
“In line with the group’s long-term healthcare strategy, Boots UK continues to expand its healthcare offering.
“Furthermore, Boots.com continues to grow above expectations having more than doubled sales when compared to pre-pandemic levels.”
The news comes as Boots reported a sales rebound in October as a result of lockdown restrictions being eased.
In the final quarter of its financial year to August 31, the company saw like-for-like sales increase by 12.8% to £25 billion.
Boots managing director Sebastian James said sales through its online business had doubled against pre-pandemic levels, with the firm maintaining this growth despite returning high street footfall.
Walgreens Boots Alliance was formed in 2014 after Walgreens bought the 55% stake in the UK and Switzerland-based Alliance Boots that it did not already own.
Last year, it announced plans to cut 4,000 jobs – or 7% of its workforce – by closing 48 opticians outlets and reducing staff at its head office in Nottingham as well as some management and customer service roles in stores.
In September, the chain said it plans to open 30 new beauty halls as business returns from the pandemic.
Boots already has 60 beauty halls, but only in its flagship stores, which include Covent Garden in London and The Trafford Centre in Manchester.
But the expansion will take the idea to smaller stores in towns across the UK.
A Boots spokesperson said customers particularly liked its celebrity beauty lines such as Fenty Beauty and Anastasia Beverly Hills.
Boots UK managing director Seb James said: “As we are now out of lockdown and life is starting to look more normal, I am confident that our beautiful new beauty halls will help to drive more footfall into Boots as well as to local high streets more broadly.”
The new halls will have ‘trending zones’, ‘discovery areas’ and consultation spaces, Boots said.
Boots will also be hiring more than 100 new staff to fill beauty specialist roles. It has more than 700 of these already.
This will also include an extra 830 Boots Macmillan Beauty Advisors support customers going through cancer treatment with free, face-to-face beauty advice.
