Pharmacy retail chain Boots has warned they are taking “decisive steps” in the UK to cut costs amid, the “most difficult” quarter in their history.
The American owner Walgreens Boots Alliance said they are to review 2,500 Boots retail stores in the UK, the company also revealed they are looking at poor performing stores and “opportunities for consolidation.”
In February the company announced 350 jobs are at risk at their Nottingham head office as the company plans to cut staff costs by 20%.
Walgreens Boots Alliance reported a 2.3% drop in like-for-like UK retail sales in the second quarter to 28 February, comparable pharmacy sales dropped 1.5%.
Global underlying net earning fell 14.3% to $1.2bn in the second quarter, however sales rose 4.6% or 6.7% with foreign exchange stripped out.
The company admitted they did not take swift enough action to offset the challenging conditions.
However, the company outlined plans to turn their fortunes around, the group will start cost cutting by $500m to more than $1.5bn by 2022.
A number of senior hires will be made to step up the company’s digital and transformation.
Stefano Pessina, Walgreen Boots Alliance boss said, “Our response was not rapid enough given market conditions, resulting in a disappointing quarter that did not meet our expectations.”
He added, “We are going to be more aggressive in our response to these rapidly shifting trends.
“We are focusing on our operational strengths and addressing weaknesses.”