Following today’s release of Boots’ figures for the quarter ending 30th November 2024; Tash Van Boxel, retail analyst at GlobalData, a leading data and analytics company, offers her view: “Boots UK has started its new financial year with a robust set of figures, with strong results across its retail and pharmacy divisions (up 10.9% and 8.1%, respectively). While the double-digit growth in the pharmacy fascia in Q1 2024/25 looks impressive, this is against a weak comparative in Q1 FY2023/24, where sales only grew 0.8%. Nonetheless, the pharmacy division has been growing from strength to strength over the last year, with performance improving every quarter as it focused on promoting its instore pharmacy services, its online Doctor service and its Pharmacy First collaboration with the NHS. Indeed, Boots has attributed its pharmacy’s successful results this quarter to a strong demand for flu, COVID-19 and travel vaccinations. However, following the Autumn Budget, Boots has outlined higher costs as a potential risk in the coming months, which may hinder further growth in its pharmacy division.
“Boots’ retail fascia has maintained momentum, up 8.1% on an impressive 9.8% growth in Q1 FY2023/24, benefiting from an increased consumer desire to shop for Black Friday in 2024 as sales during Black Friday week rose 20% at Boots. Indeed, Boots retained its position as the first port of call for health & beauty purchases during the Black Friday promotional period, with a quarter of health & beauty shoppers opting for Boots for their purchases for Black Friday this year, according to GlobalData’s 2024 Black Friday report. Though some consumers used the promotional period to buy Christmas gifts, demand for fragrance and beauty was also high – likely driven by an increase in consumers shopping for themselves during the occasion (up 1.1ppts to 59.5%). Aside from its success during Black Friday, Boots’ beauty category outperformed throughout the period, with sales up 11% this quarter. Boots added 20 new brands to its offer, such as Neom Wellbeing and Naturium, and its sustained focus on expanding its beauty offer will put it in good stead to ward off threats from beauty specialists Sephora and Space.NK.
“Boots’ online channel has excelled, with sales rising 23% on a constant currency basis, making up 22.0% of total retail sales (up 2.8ppts on Q1 FY2023/24). This strong result was due to Boots’ enhancing its online platforms, with features such as “trending on social” outlined as a shopping category to ensure consumers do not switch away to more dynamic retailers, such as Cult Beauty and Sephora. Moreover, the Black Friday period proved pivotal to its online platform, with Black Friday itself (29th November) marking Boots’ biggest sales day online. Indeed, as more consumers turn to the online channel for health & beauty purchases during the promotional period, Boots is in a prime position to extend its lead as an online market leader. It must ensure delivery charges and windows remain in line with competitors.
“While this reporting period excludes the month leading up to Christmas, the health & beauty specialist has hinted at a strong trading period. Given Boots’ continued expansion of beauty brands and its ongoing “3 for 2” gifting offers instore and online, we anticipate that Boots will celebrate a stellar Christmas trading period off the back of its strong quarterly performance.”
