Black Friday Boost and Strategic Value Focus Drive Growth
Boots has reported impressive growth in the first quarter of its fiscal year, with retail sales rising by 8.1% year-on-year for the three months ending 30 November 2024. The growth is attributed to a successful Black Friday, an expanded loyalty program, and a strategic emphasis on value.
Loyalty Program Gains Momentum
Boots saw a 3.5% increase in active Advantage Card members, with over 700,000 new customers joining the program in Q1. The loyalty program now boasts over 16.9 million active members, driving customer engagement and repeat purchases.
The company leveraged first-party data from the Advantage Card scheme to deliver targeted campaigns. Chief Marketing Officer Pete Markey referred to the revamp of the loyalty proposition in 2023 as the brand’s “biggest-ever investment in pricing”, aligning with its focus on personalized offers.
Strong Sales Across Categories
Boots reported significant growth in its own-brand products, especially in beauty, vitamins, and supplements. The Price Advantage initiative remains popular among customers, contributing to increased sales.
Digital Sales Surge
Digital retail sales surged by 23% year-on-year, accounting for 22% of all sales. The Boots app continued its rapid growth, achieving 8.1 million active users. During Black Friday week, sales rose by 20%, with nearly two bottles of fragrance sold every second during the busiest hour.
Pharmacy Services Deliver Strong Results
Pharmacy sales saw a 10.9% increase, driven by high demand for flu, COVID-19, and travel vaccinations, as well as services like Boots Online Doctor and NHS Pharmacy First consultations.
Positive Momentum for the Future
Despite upcoming cost pressures in 2025 due to the Autumn budget, Anthony Hemmerdinger, Managing Director of Boots UK and Ireland, remains optimistic. “With positive momentum and a clear plan, we are focused on long-term, sustainable growth,” he stated.
Beauty Partnerships and In-Store Success
Partnerships with Leading Brands
Boots expanded its beauty partnerships, adding over 20 new brands, including Neom Wellbeing and Aveda. Beauty sales grew by 11% year-on-year, further solidifying Boots’ position in the beauty market.
Store Upgrades and Flagship Success
In-store sales, especially at flagship locations, saw strong performance. The company refurbished 30 stores, including major locations like Birmingham Bullring and Manchester Trafford Centre.
Christmas Campaign Success
Boots’ Christmas 2024 campaign, centered around Mrs. Claus’ ‘Werkshop,’ introduced over 40 new seasonal gifting brands. The marketing mix, featuring 65% new tactics, including gaming and influencer collaborations, generated significant engagement.
Walgreens Boots Alliance and Global Growth
The parent company, Walgreens Boots Alliance, reported a 4.5% increase in global sales, with Boots UK being a major contributor. Analysts suggest continued investment in social media and influencer marketing to remain competitive with brands like Sephora.
Looking Ahead
Boots is committed to enhancing customer experiences through innovation, personalization, and value-driven strategies. As it continues its transformation journey, the retailer aims to navigate challenges while sustaining its growth trajectory.