Collect in store behind growth in online orders for Boots.com

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Collect in store behind growth in online orders for Boots.com

A “collect in store” service launched by Boots.com last August has grown online traffic, with more than 67% of online sales now being picked up in store, says the company in its first quarter results for 2016. Reported retail growth for Boots UK mostly came from its online sales.

Pharmacy business for Boots UK increased by 3.5% in the first quarter, said Walgreens Boots Alliance, primarily the result of additional high value drugs dispensed in its hospital pharmacies, higher average item value and growth in pharmacy services such as flu vaccinations.

Cosmetics were the best performing retail category for Boots UK over recent months, showed the 2016 first quarter results, led by a “strong performance” for No7 and the Liz Earle brand that was acquired in July 2015. Sales of seasonal gifts were said to be “particularly” successful over Christmas.

Following positive trials with the No7 and Soap & Glory brands in the US, a “differentiated beauty offering” is to be expanded to approximately 2,000 US stores. A shift towards a health and beauty focus is also resonating with US customers, said the financial update.

Speaking about the company’s international performance, executive vice chairman and CEO Stefano Pessina said, “The year has started with a comparatively strong first quarter, as we expected. Our ongoing work to control costs across Walgreens Boots Alliance and improve adjusted operating income margins is growing earnings overall. Although it is early in the year, we are on track to deliver against our expectations.

“The work to renew and update our businesses, in order to meet the opportunities and challenges of our ever-changing markets, is a core strength that we must embrace as routine across our enterprise. Our ability to deploy tools and strategies that address these dynamics, generating continued growth across Walgreens Boots Alliance, and the commitment I see from our team give me confidence that we will deliver what we have signalled for 2016 and beyond.”

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