New Boots boss slams poor past performance at pharmacy chain
Richard Baker, the recently appointed chief executive of the Boots Co, has criticised the performance of the Boots The Chemists chain under its previous chief executive Steve Russell.
Mr Baker said that Boots has fallen behind on basic retail disciplines
such as keeping key lines in stock, leaving customers confused and frustrated.
He also said that not enough investment has been made on stores. Too
much time and money had been spent on its Wellbeing services, since withdrawn,
and not enough on the core pharmacy chain. “We have not communicated
what a skilled pharmacy organisation we have,” he said, adding
that although there are no quick fixes, the priority is to increase the
pace of change in the pharmacy chain.
Chairman Nigel Rudd added that Boots “for all sorts of reasons
and distractions, has failed to punch its brand weight”.
In the six months to 30 September, Boots group sales rose by 4.9 per
cent to £2.5bn while pre-tax profits were up 10.7 per cent at £280.5m
thanks to asset disposals which brought in £14.6m. Sales at Boots
The Chemists were up 3.6 per cent on a like-for-like basis at £2.07bn.
Ten new retail park stores were opened during the period and 156 stores
refitted. |
