Facing Increased Expenses Post-Budget, Boots Records a Leap in Sales

Major high street pharmacy chain Boots has warned of "intensified cost pressures" for the year 2025 in the wake of the Autumn Budget. Despite this, the company has experienced a significant surge in sales recently.

Boots' newly appointed chief executive, Anthony Hemmerdinger, acknowledged the financial strain but stressed that "our focus is on overcoming these challenges to ensure continued long-term, sustainable growth." According to City AM, the company witnessed an 8.1% increase in total comparable retail sales for the first quarter of its financial year, ending on 30 November 2024.

The health and beauty retailer noted growth across all product categories and sales channels, continuing the upward trend from the previous year. Digital sales experienced a 23% increase year-on-year, contributing to 22% of the total retail revenue, with in-store sales also showing an uptick.

Excluding Christmas sales, Boots saw a 20% rise in Black Friday sales for that week. The company will detail its Christmas sales performance in the upcoming second-quarter earnings report, hinting that "early signs point to a strong Christmas trading period."

Beauty sales at Boots soared by 11% year-on-year, propelled by fragrances, premium beauty products, and skincare. In the healthcare sector, the company reported a 10.9% increase in comparable pharmacy sales, largely due to the strong performance of services like flu, Covid-19, and travel vaccinations.

Anthony Hemmerdinger, Managing Director of Boots UK and Ireland, stated: "These results are a testament to our financial strength, with retail and pharmacy sales showing significant growth, market share increases, and higher customer satisfaction ratings."

He further commented, "These numbers show that our transformation efforts – from enhancing the in-store and digital customer experience to offering a comprehensive range of products and services at all price points – are yielding results."

Hemmerdinger expressed his gratitude, saying, "I would like to extend my thanks to our team for their dedication during this crucial trading period. We remain committed to our transformation journey and have more exciting developments in the pipeline to further improve our customers' experience."

Addressing future economic challenges, he remarked, "While we anticipate heightened cost pressures in 2025 following the Autumn Budget, we are confident in our positive momentum and clear strategy to navigate these challenges and maintain long-term, sustainable growth."