Boots sees retail market share growing across categories | WARC | The Feed
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Boots sees retail market share growing across categories
Boots UK says in its latest quarterly results it is growing retail market share across all categories, led by Beauty; meanwhile speculation continues about a possible sell-off and observers wonder if the retailer is investing enough in digital.
- Retail sales were up 16% and pharmacy sales up 9% during the first financial quarter to the end of November 2021, as compared to a year earlier.
- Store footfall was up by a third but remains around 20% below pre-COVID levels; store basket size was running at around 12% above pre-COVID levels.
- Boots.com sales were nearly twice pre-COVID levels and now represent more than 15% of Boots’ total retail sales.
- Boots says it is growing retail market share across all categories, led by Beauty.
“Our transformation continues as planned with investment, particularly in digital, our beauty portfolio and healthcare services, aiding a fast-paced recovery from the pandemic,” said Sebastian James, managing director at Boots UK, in remarks reported by the Evening Standard.
- Boots is market leader in pharma and health and beauty retail in the UK, with about 23% of store-based sales in these sectors.
- Boots has a tiny slice of the e-commerce pie, but its major rivals are growing rapidly, while Amazon is also quickly growing its share and influence in the health and beauty category as it seeks to expand its business model beyond traditional retail. Edge by Ascential expects UK pharma retail e-commerce to grow seven times faster than store-based sales by 2026.
- Over the past year, Boots has partnered with Deliveroo and rolled out dedicated beauty halls.
- There is speculation that parent group Walgreens Boots Alliance could sell off Boots in order to focus on North America and healthcare.
“If Boots wants to remain ahead in the UK market, it is essential that it focuses investment in its online channels, rather than relying primarily on a store estate that is tired and no longer reflects the needs of the modern customer,” says Nick Everitt, Director, Advisory, Edge by Ascential.
Sourced from Walgreens Boots Alliance, Edge by Ascential, Evening Standard, Nottingham Post
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