Sales and profits have slumped at Boots as the pharmacy chain was struck by a fall in prescription numbers.
The UK firm's parent business Walgreens Boots Alliance (WBA) saw international sales slip on the back of a decline in the UK. WBA's internal retail arm saw like-for-like pharmacy sales rise 0.6% in the three months to November 30 on the back of increased reimbursement by the NHS and increased sales of service. However, it added these improvements were partly offset by lower prescription volumes in the UK.
Meanwhile, like-for-like retail sales slipped 3% as the group blamed weak performance from Boots UK. Lower retail sales and profit margins in the UK arm helped to drive a 6.3% slump in gross profit against the same a quarter the previous year. The sales slump followed a 2.1% decline for UK retail business in the previous quarter amid a challenging retail backdrop.
In July, Boots confirmed plans to shut down around 200 stores over the next 18 months, placing thousands of jobs at risk. The company said the store closures will primarily focus on local pharmacy branches in areas where it has other stores nearby.
