Boots’ US owner has shelved plans for a multibillion-pound sale for the second time.
Walgreens, which has owned the health and beauty giant since 2014, abandoned plans as it cut its profit outlook and announced plans to close up to 700 US stores, as its share price fell to its lowest level since 1997.
Boots however, was a standout performer for the business, as sales at retailer rose 6%, on top of a 13% increase in the prior year quarter.
Chief executive Tim Wentworth who came on board last October said he would retain ownership of the retailer as he attempts to overhaul the business through store closures, the removal of multiple mid-level executives and a $1bn cost-cutting plan.
He told The Telegraph: “Our review of Boots UK showed that we have attractive options to unlock value in this business.
“While we believe there is significant interest in Boots at the right time, its growth, strategic strength and cashflow remain key contributors to the company. We are committed to continuing to invest in Boots UK and find innovative ways for this business to fulfil its potential.”
The decision will spark fears that Boots stores could face closure or miss out on upgrades.
Walgreens has already closed 650 stores in the UK. Back in 2022 Walgreens attempted to sell the the 172-year-old pharmacy chain but later abandoned the process after suitors failed to meet its asking price, which was thought to be around £7bn.
Click here to sign up to Retail Gazette‘s free daily email newsletter
