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Boots could become the latest victim of High Street, a British city in crisis, with 200 stores under investigation for a possible closure, it was revealed today.
The chain's US parent company, Walgreens Boots Alliance (WBA), warned last month that she had experienced her "most difficult quarter" since its inception and that she would need to take 'decisive action to reduce costs in the UK'.
It is currently examining 200 stores that could close within two years. Some 60,000 people work in 2,500 Boots stores across the country.
While news could hit independent and online retailers hard, they are hitting tens of thousands of workers hard.
The UK High Street has experienced one of its worst years in 2018 with several retailers that have closed down and that have resulted in job losses across the country.
And this year seems to follow a similar pattern, with fashion brand L.K Bennett and Italian brand Jamie among those filing applications for administration.
200 Boots stores across the UK have been placed under review. About 60,000 people are employed by the company
The American pharmacy chain Walgreens acquired a 45% stake in Alliance Boots in 2012 and in 2014 Walgreens Boots Alliance was created.
WBA has now placed more than 200 outlets to the study, according to Sky News. Sources told Sky that even though no decision had yet been made, a "significant number" of stores could be closed.
Boots employs approximately 60,000 people and has 2,500 stores in the United Kingdom. Sales fell 1.3% in the three months to February.
At the same time, Walgreens – a large chain of pharmacies in the United States – said its profits had been affected by fierce competition and falling prices in the drug market.
Stefano Pessina, general manager of the company, said: "Although we are not the only company affected by the marked change in the environment, this is not an excuse."
Overall, Walgreens said it will now save 1.1 billion pounds by 2022, up from its previous target of about 750 million pounds.
Walgreens Boots Alliance was created following a major merger that took place five years ago between Walgreens and Boots Alliance. Boots itself was founded in 1849.
Walgreens Boots Alliance was created following a major merger that took place five years ago between Walgreens and Boots Alliance. Boots itself was founded in 1849
In April of this year, Walgreens Boots Alliance announced that it had begun taking "decisive action" in the UK to reduce costs, including reviewing its approximately 2,500 Boots retail stores.
The group said it was also interested in "underperforming stores".
It follows the group's announcement in February that 350 jobs would be at risk at its headquarters in Nottingham, while the government planned to cut headquarters staff costs by 20%.
From the humble herbalist to the pioneering Aspirin of World War I – how Boots the Chemist became the giant of High Street
Jesse Boot became a partner in his father's business after leaving school at the age of 13. He then joined his mother to lead and develop the family business.
1849: John Boot has opened the first herb shop in Nottingham, offering an affordable alternative to traditional medicines. The Thomsonian health care system, developed in the United States, appealed to John, a religious pious, as it offered a hands-on approach to helping the poorest help themselves.
1870: Mary Boot, John's widow, and her son, Jesse, began trading under the name of M & J Boot, Herborists after leaving Jesse School at the age of 13. The sale of herbs was an important element. on the living room walls at the back of the shop and then powdered
1877: Jesse took exclusive control of the company and launched the "Health for a shilling" campaign, which offers traditional medicines at very low prices
1884: Jesse Boot has named his first qualified pharmacist, Edwin Waring. Her dispensing services were offered at half the price charged by other pharmacists in Nottingham.
1885: The first fabrications took place in a small cottage near the Nottingham store before becoming a factory. In a few years, Boots had taken over the entire plant and acquired other properties nearby.
1892: A flagship-style store was opened at Pelham Street, Nottingham, with products available at the dispensary, perfumery and stationery on the ground floor, as well as paintings, glbad and items fancy on the floor. The store has "surprisingly appealed to the public" and has become the model for future Boots stores
1915: During the First World War, Britain lost its stock of German chemicals. Jesse has badembled a team of experts to start researching and manufacturing key synthetic chemicals such as aspirin. Boots claimed that their aspirin was the "purest on the market". The company was soon supplying the British government with drugs for field hospitals
1935: The original range & # 39; Number Seven & # 39; was the company's response to providing a prestigious but affordable beauty product line
1939 The launch of Soltan responded to customers' desire for a non-greasy lotion. The summer of 1939 helped make the brand an instant success
1951: Boots has become the first UK pharmacy store to offer self-service stores. Boots has opened its first self-service store in Burnt Oak, Edgware, London
1983: Boots tested its first optical practice in store in Nottingham and followed it with six other practices the following year.
1985: Boots received the Queen's Award for its technological achievements for the discovery and development of ibuprofen
1987: Boots Opticians has been formed. Boots' first independent Optics firm opened in September 1987 in Durham
2009 Fusion of Boots Opticians and Dollond & Aitchison to form the second largest optical chain in the UK. Launch of BootsWebMD.com offering its customers a portal of information on health and well-being. Intense beauty serum No7 Protect & Perfect launched
2010: Boots brands were sold directly to third-party retailers in the United States and other countries. Boots Pharmaceuticals launched
2012: The US pharmacy chain Walgreens acquired a 45% stake in Alliance Boots
2014: Walgreens Boots Alliance was created by combining the Walgreens and Alliance boots.
Source: boots
Which restaurants are closing in the bloodbath of the street?
Jamie Oliver's chains last week became the latest victims in the bloodshed sweeping the main street, with 22 out of 25 restaurants closed with immediate effect.
The restaurant chains Giraffe and Easy & # 39; s Diner revealed in March that their owner planned to close a third of the brand's sites.
The group of restaurants Boparan (BRG) has announced the closure of 27 restaurants out of a total of 27. She bought Giraffe at Tesco in 2016 and badociated with Ed Easy, after acquiring the chain the same year.
The giraffe (photo) is among the victims of the bloodshed sweeping the main street
Last year, several brands of casual restaurants closed their sites due to rising costs and increased competition.
Prezzo, Byron, Carluccio & # 39; s, Gaucho & Gourmet Burger Kitchen are all closed branches.
In November, Gourmet Burger Kitchen's creditors approved a plan to close 17 of the premium chain restaurants, putting at risk some 250 jobs.
Also in 2018, Prezzo announced the closure of 94 of its 300 points of sale.
The WBA posted a 2.3% decline in UK same-store retail sales in the second quarter, ending February 28, while comparable pharmacy sales fell 1.5%.
The group now expects earnings per share growth to be more or less stable for the current year, which is a net downgrade from its previous guidance of 7% to 12%.
Global underlying net profit fell 14.3% to 1919 million pounds in the second quarter. However, sales increased 4.6%, or 6.7%, as currency movements were eliminated.
The international division, including the United Kingdom, posted an 8.9% decline in earnings in the second quarter, down 1.2% in constant currencies.
Mr Pessina admitted that the group had not acted quickly enough to make up for the difficult conditions.
However, he announced his intention to reverse the situation, including raising cost reduction targets by around £ 383 million to more than £ 1.1 billion by 2022.
He also plans to undertake a number of high-level hires to accelerate efforts to strengthen his capabilities and digital transformation.
Mr. Pessina said: "Our response was not fast enough given the market conditions, which resulted in a disappointing quarter that did not meet our expectations.
"We will be more aggressive in our response to these rapidly changing trends. We focus on our operational strengths and weaknesses. & # 39;
Walgreens Boots Alliance was formed in 2014 after Walgreens bought the 55% stake in the UK-based Alliance and Switzerland, which it did not yet own.
The chain's US parent company, Walgreens Boots Alliance (WBA), warned that she had experienced her "most difficult quarter" since her training.
A spokesman for Boots said, "We have not planned a major program yet, but as you can imagine, we're still looking at underperforming stores and looking for consolidation opportunities.
"As it is natural for a company of our size, we have stores that open, close and move regularly, but we have opened about 2,500 stores for several years. In fact, we invest in our stores. Last year, we completed a major merchandising project to update our self-selected cosmetic areas in 2,200 of our stores.
"We have recently announced the planned opening of a new flagship store in Covent Garden, London, and the reinvention of our beauty sector in 24 stores across the UK. We are realistic about the future and we need to be flexible to adapt to the changing landscape. "
Bloodbath on the High Street: How did the stores become animated?
The year 2018 was one of the worst for the UK, High Street, with retailers that shut down and that resulted in many job losses across the country.
Brands such as House of Fraser and Marks & Spencer have fought to keep stores open while other retailers such as New Look have called for a solution to stop store closures and losses. # 39; employment.
In 2018, close to 85,000 retail jobs were cut in the United Kingdom, as the bankruptcy of companies went bankrupt, with a thousand entering the administration between January and September. .
In addition, the number of outlets left empty increased by 4,400 in 2018, according to data from the local data company.
Gap, the High Street giant, also announced the closure of 230 stores around the world while its US parent company launched a major restructuring program.
The pressure on High Street retailers has reached an all-time high as they continue to try to keep up with the ever-growing popularity of online shopping.
Online retailers are able to keep prices down because they do not face the huge rental costs of physical stores or staff rates.
While retailers are fighting against rising online purchases, they are also forced to fight against Brexit. Indeed, many supply chain routes and whether or not they are available in a non-transaction scenario have created additional cost concerns for retailers, as many are considering storing their products in the future. stock. or do not import them at all.
Here are some of the big retailers who have lost to fierce competition from the boom of online shopping.
Carpetright
The carpet retailer closes 92 stores in the UK. These closures represent nearly a quarter of all Carpetright stores in the United Kingdom.
Toys r us
The largest toy store in the United Kingdom entered service in February 2018, resulting in about 2,000 layoffs.
House of Fraser
The chain of department stores was about to enter the administration, but was saved at the eleventh hour by Sports Direct owner Mike Ashley.
Maplin
The electronics giant went bankrupt, closing stores across the country and jeopardizing thousands of jobs.
Maternal care
The chain of babies and toddlers is closing 60 stores across the UK, putting up to 900 jobs in jeopardy.
Poundworld
Poundworld announced that it would enter the administration on June 11 as a result of the failure of discussions with potential buyer R Capital, thus jeopardizing 5,100 jobs.
Homebase
The DIY chain is expected to close 42 DIY stores, putting at risk about 1,500 jobs.
Marks & Spencer
The retailer announced in May that it planned to close 100 stores by 2022, thus putting at risk hundreds of jobs.
In August, the stores in Northampton, Falkirk, Kettering, Newmarket, Mersey Speke, Stockton and Walsall all ceased operations.
Orla Kiely
Orla Kiely, the Irish fashion retailer collapsed in September and closed all its stores after a fall in profits.
HMV
In December, HMV entered the administration. London Oxford Street, its flagship, closed earlier this year.
L.K Bennett
Fashion brand LK Bennett announced that she would file her administrative record on March 1, 2019. Linda Bennett sent employees an early morning email to inform them of the news before she appeared to the media .
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