The proprietor of Boots has change into the newest firm to take a success to income from the UK’s “very weak” excessive avenue within the run-up to Christmas.
US-based Walgreens Boots Alliance reported a four.1% fall in adjusted working income to $1.7bn (£1.3bn), blamed on the “difficult market” and one-off prices within the UK.
Walgreens additionally stated it was launching a serious world cost-cutting programme aimed toward saving $1bn (£790m) a 12 months which might lead to “important restructuring”.
Boots has been advertising and marketing its Christmas choices in a mother-and-daughter based mostly advert marketing campaign that highlights its make-up and hair ranges.
However Walgreens first quarter outcomes confirmed UK pharmacy gross sales fell three.5% within the three months to the top of November, whereas retail gross sales dropped 2.6%.
Walgreens stated that the UK enterprise had seen improved market share efficiency however that this was “greater than offset by a really weak retail setting”.
It comes after Warpaint – the maker of W7 Cosmetics – issued a revenue warning in October after powerful buying and selling within the UK.
The weak UK circumstances have been cited as the principle cause for a 2.three% underlying fall in gross sales for the Walgreens retail pharmacy worldwide division, which incorporates almost four,800 shops in eight nations exterior the US, about half of them in Britain.
General group gross sales, together with its foremost market within the US, have been up by 9.9% to $33.8bn (£26.7bn).
Walgreens chief govt Stefano Pessina introduced the launch of a cost-cutting programme for the group.
It features a world “good spending and good organisation” programme initially centered on its retail companies within the US and UK in addition to “world features”.
Mr Pessina stated: “We proceed to deal with and put money into remodeling our enterprise.”
Chicago-based Walgreens took full management of Boots proprietor Alliance Boots in a £9bn cash-and-shares deal in 2014 that noticed it swallow up the 55% of the corporate it didn’t already personal.
The Boots UK division stays based mostly in Nottingham.
Walgreens operates shops beneath its personal title in addition to the Duane Reade model within the US.