Boots Company
Boots is the dominant British pharmacist chain, with outlets in most high streets throughout the country. In recent years they have diversified greatly from the traditional pharmacy, and offer one-hour photo-processing, and are opticians, as well as selling some home appliances in certain stores. Boots until recently owned Halfords and once owned FADS a home furnishings store. Childrens World - similar to Mothercare - was another Boots company.
The Company was until recently called, The Boots Company and consisted of several subsidary companies, such as Boots the Chemists Limited. It is now called, 'Boots U.K and Ireland' or the 'Boots Group'. The Company is now broadly spilt into two - between Manufacturing and Retail operations. Originally with their own logos, all parts of the Company (except Crookes Healthcare) now share the Boots lozenge logo (as seen on the photo).
They have recently branched into dentistry, with a number of stores offering this service. Boots also ventured into 'Wellbeing' services offering customers a range of treatments from facials, homeopathy, nutritional advice through to laser eye surgery and BOTOX (although the BOTOX service was short lived). A number of Wellbeing centres opened within stores such as Nottingham, however although Nottingham is reported to have traded well, the other Wellbeing centres were not so successful. A decision was therefore made to close 'Wellbeing' and the Company decided to 'refocus' on its traditional core businesses. This decision was perhaps premature and shareholders no doubt wonder why well-performing stores were not retained considering the huge finacial investment made to convert stores to support Wellbeing. The logic behind many decisions must fall upon the shoulders of the decision makers within the Company since Nottingham has for example, closed its Wellbeing over a year ago - and although efforts are now underway to 'reclaim' the floorspace, this floorspace has remained unprofitable for some time. In a major shopping centre with high rents these decisions are questionable. Laser eye surgery remains and so do some 'Footcare' services. Boots Hearingcare was sold and although it continues to trade at Boots, the service is owned by other Company.
Since the appointment of a new Chief Executive from ASDA the Company has been given greater re-focus - inevitably leading to more out-sourcing (such as Boots own warehouses at its Head Office base in Nottingham - now owned by UNIPART) and job losses at Nottingham. In a break from tradition, Boots is reported to be preparing to lease out a main office building (vacant due to the level of staff losses) on its own private estate in Beeston, Nottingham.
The Boots Estate features a range of listed buildings and staff enjoy a staff restaurant, coffee and snack shops, newsagent, branch of Boots, bank situated within beautifully landscaped grounds. The landscaped grounds include the Millennium Garden which features a herb garden (with some plants that Jesse used in his original herbal remedies) in the shape of a goose foot - thus harking back to Jesse's original shop on Goosegate in Nottingham. The Boots Museum is now closed (due to cost cutting) and historical items are in storage. The Head Offices are adorned with some interesting artefacts from old stores and feature two 'shops' where new displays and advertising are trialled. Over the summer months staff work hard to create Christmas displays in the second of the two shops hidden from view with only certain staff permitted access. The plans for Christmas - a major trading time for any retailer - starts to take shape in September and late Summer as stores gradually move shelving and displays ready for the massive increase in products and stock. Stores are therefore in a state of flux for almost half the year, although the Company makes great efforts to keep disruption to a minimum to its customers and is very much focused on customer navigation of its stores. The Head Office site also features its own trial suite where new products are sampled and tested by consumers before the final decision is made to launch a product. However Boots also develops and produces a range of products for major names.
Boots were founded in Nottingham by John Boot in 1849. Their current logo is based on a design made by one of Jesse's signwriters in the 1870s. The chain was established during that time, and for the first time they became official dispensing chemists, stocking prescription medicines. By the onset of the First World War there were over five hundred Boots. Boots now has almost one thousand stores including some stores overseas.
Boots have also diversified into research and manufacturing drugs also. They discovered ibuprofen, a painkiller and continue producing, trading and exporting overseas. Boots may well expand into the U.S. by supplying its popular ranges such as Botanics to department stores. Boots stores are starting to sell products not traditionally associated with Boots such as Dyson's - under the guise of 'Offer of the Week'. These 'odd' items are bought in bulk and savings on High Street prices are passed onto the customer. Although many may see this as odd, Jesse's own customers were often presented with 'odd' items which Jesse purchased by buying in bulk and taking the first steps towards the strength of bulk buying. Jesse once filled the windows of his second Goosegate shop with sponges!
As the new Chief Executive starts to stamp his mark onto Boots, it will no doubt be an interesting time to observe Boots and its share price and overall performance.
