Announcing its latest financial results today (October 13) for the June-August period, Walgreens Boots Alliance said footfall to its UK branches was up 20% compared to the previous year, with comparable retail sales also up 15.2% year on year.

However, “comparable pharmacy sales decreased 6.9%” against the same period last year – when demand for COVID-19 services was “very strong”, the health and beauty giant said.

Despite announcing that adjusted operating profits across its international segment – which includes Boots UK – went up 5.4% in the same period, Walgreens Boots Alliance pointed out that this growth was “partially offset by lower demand for COVID-19-related services in the UK” and the “timings” of the NHS reimbursement.

In October last year, Walgreens Boots Alliance acknowledged that the 11.4% year-on-year increase in pharmacy sales it had just recorded was “notably” linked to demand for COVID-19 tests.

Referring to operating loss for its international segment, Walgreens Boots Alliance said this stood at $672 million (£600.6m) for the year ending August 2022, “compared to operating income of $46m (£41.1m) in the same quarter last year, as a result of the $783m (£699m) impairment charges in Boots UK”.

A Boots UK spokesperson told C+D that the impairment charges relate to “trademarks and licences, with most of the impairment due to the impact of higher discount rates”.

 

Retail sales exceed pre-pandemic levels

 

Boots’ retail sales are “now exceeding pre-pandemic levels”, up 15.2% for the June-August period, it announced.

Sales received a boost following an increase in footfall to “flagship and travel stores” as customers resumed their travels following the end of lockdown restrictions, while this summer’s heatwaves contributed to an increase in sunscreen sales.

In fact, sales for this category increased by over 150%, Boots revealed.

Boots UK managing director Sebastian James welcomed today’s results as “really encouraging”.

“I am especially happy to see more and more customers choosing Boots over others and our market share rising as a result,” he said.

“I want to say a huge thank you to the 50,000 plus Boots family who have made this great performance happen,” Mr James added.

 

Website sales almost double pre-pandemic levels

 

Boots UK also reported that sales from its website had accounted for 11% of retail sales in the June-August period, compared to 6% pre-pandemic.

Meanwhile, its online doctor service now counts more than 750,000 customers.

As of August this year, Boots had more than 2,100 and employed more than 4,800 pharmacists, according to data shared by the multiple.