Retailer Records 8.1% Year-on-Year Sales Growth
Boots has reported significant growth across all categories and channels in its first quarter, driven by a robust Black Friday performance and a strategic focus on delivering value.
For the quarter ending 30 November 2024, Boots achieved an 8.1% year-on-year growth in retail sales, fueled by its loyalty scheme expansion and pricing strategy.
Expanding Loyalty Program Drives Sales
A notable 3.5% increase in active Advantage card members contributed to this growth, with over 700,000 new customers joining in Q1. The program now boasts over 16.9 million active members. Boots’ Price Advantage initiative and revamped loyalty offerings, launched in early 2023, played a pivotal role in engaging customers.
Chief Marketing Officer Pete Markey emphasized the power of personalization through first-party data from the Advantage card, enabling targeted offers aligned with customer preferences.
Growth in Own-Brand and Digital Sales
Boots reported a surge in sales of its own-brand products, particularly in vitamins, supplements, and beauty items.
Digital sales soared by 23% year-on-year, accounting for 22% of total retail sales. The Boots app also showed impressive growth, with 8.1 million active users, reflecting the company’s digital transformation success.
Black Friday and Festive Success
The company’s Black Friday sales rose by 20% compared to the previous year, marking the busiest day in its history, with nearly two bottles of fragrance sold every second during peak hours.
Although full Christmas earnings are yet to be disclosed, early indications suggest a solid festive trading period, further bolstered by strong sales of health, beauty, and fragrance products.
Pharmacy Services See Growth
Boots’ pharmacy sales experienced a 10.9% year-on-year increase, driven by popular services such as flu, COVID-19, and travel vaccinations, along with the Boots Online Doctor and NHS Pharmacy First consultations.
Strategic Investments in Stores and Beauty
The company refurbished 30 flagship stores, including Birmingham Bullring and Manchester Trafford Centre, enhancing the in-store experience.
Beauty partnerships continued to thrive, with sales growing 11% year-on-year. Boots introduced over 20 new brands like Neom Wellbeing and Aveda, solidifying its position as a leader in the beauty market.
The Christmas 2024 campaign, Mrs. Claus’ Werkshop, showcased over 40 new seasonal gifting brands while leveraging a marketing mix with 65% new tactics, including gaming and influencer-driven strategies.
Focus on Future Growth
Anthony Hemmerdinger, Managing Director of Boots UK and Ireland, expressed confidence in the company’s ability to navigate challenges, including cost pressures stemming from the Autumn budget.
“We are committed to our transformation journey and have exciting plans to enhance the customer experience,” said Hemmerdinger.
Key Takeaways:
- 8.1% sales growth in Q1 2025, driven by loyalty and pricing strategies.
- 700,000 new Advantage card members, totaling 16.9 million active users.
- 23% rise in digital sales, with digital now making up 22% of retail sales.
- Strong performance in beauty, pharmacy, and own-brand products.
- Continued investment in store refurbishments and digital innovation.
Boots remains optimistic about achieving long-term, sustainable growth while continuing to deliver value to its customers.
