Boots' New Ownership: Potential Impacts on Shoppers and Services

Boots, a long-standing fixture on British high streets, has a new owner: Wittington Investments, the holding company of the Canadian Weston family. The Westons, who previously owned Selfridges and currently own other large retailers across North America, including Associated British Foods (ABF), the owner of Primark, have taken control of Boots' 1,800 stores.

The future appearance of Boots stores has not yet been disclosed, but Wittington Investments has indicated that portfolio upgrades are a priority. According to Sofie Willmott, an associate director at GlobalData Retail, business has been robust for Boots in recent years, with improvements in larger stores, such as redesigned beauty areas that offer a more department-store-like experience. Boots has also piloted beauty-only and fragrance concept stores, alongside an opticians focused on luxury eyewear.

"They should invest in the rest of the chain because they've got such a big store portfolio that I think some of the smaller stores have really lacked investment over time," Willmott stated, suggesting a need for more consistent store design across the chain. Retail industry veteran Jackie Naghten added that stores need to be more functional, with health hubs better integrated rather than "squeezed in the corner."

Despite potential changes, the retailer's popular Advantage card, launched in 1997, is expected to remain. Described as offering "the best-value store card in terms of bang for your buck," the loyalty program allows shoppers to earn three points for every pound spent, with each point valued at 1p. While many shoppers appreciate accumulating points for discounts, some, like Lewis Harrison, find it frustrating that points cannot be used for partial transactions, a feature available at other retailers. Retail expert Natalie Berg suggests the Advantage card provides Boots with valuable customer data that the new owners will likely leverage, especially as AI and social media influence consumer purchasing habits.

Boots' new owners also plan to expand its healthcare services, a sector experiencing significant growth. Historically an apothecary, Boots has maintained a strong focus on health and wellbeing, offering in-store pharmacies that provide prescriptions, vaccinations, and increasingly, services for weight loss drugs. Naghten noted that this expansion aligns with a broader trend of pharmacies taking on more prescribing and health service roles to alleviate pressure on the National Health Service.

While health remains a core area, Boots also benefits from its own brands, such as No7 cosmetics. Naghten suggested that customers visiting for health services might also make beauty purchases, creating cross-selling opportunities. Willmott added that Boots holds a reputational advantage in the health sector.

However, Boots faces considerable competition. Revenues have been affected by shifting consumer behavior, with younger shoppers increasingly influenced by online advertising and influencers. Rivals include Superdrug, and Marks & Spencer is set to replace some of its beauty sections with Sephora in the coming year. Convenience also plays a role, with some shoppers, like Schekina Bourne, preferring nearby Superdrug locations over Boots.