Alliance Boots’ new private equity owners are to accelerate the business transformation programme, in a bid to become the world’s biggest health and beauty retailer.
At present, Alliance is in sixth place in the world league, which is led by US powerhouse Walgreens. A faster store revamp programme, installation of more GP surgeries and the introduction of new services such as spas will be initiated to power Alliance Boots up the world rankings.
Speaking to Retail Week in his first full interview since being made Boots managing director in July, Alex Gourlay said the retailer now expects to have completed its UK store refurbishment programme within three to five years.
As part of its growth push, Alliance Boots has pinpointed 150 stores where it wants to roll out GP surgeries after a trial at its shop in Poole, Dorset. The retailer is in advanced negotiations in 30 locations and four surgeries are expected to open early next year.
It will run three GP surgery formats: locations that operate satellite surgeries in store in conjunction with an existing surgery; locations housing a full surgery; and midnight pharmacies where doctors will be available for evening appointments.
The retailer has also highlighted 20 locations where it could roll out its UR Beautiful beauty spa. The first trial spa opened in Kingston last month.
Alliance Boots, which was taken over last year by a consortium led by private equity firm KKR and billionaire Stefano Pessina, adopted the strategy of being “closer to stores” under former chief executive Richard Baker’s leadership, ensuring healthcare, beauty and convenience are run as effectively as possible.
“The route that Richard was steering the company on remains on track, but we now have the investment to speed things up,” said Gourlay.
“Richard spent a lot of his time talking to the City and he was very good at it, but I spend all of my time in the business and have just two shareholders – KKR and Stefano Pessina.”
Gourlay said that Pessina leads any new high-level investment, but “doesn’t get involved with the operational side of the business”. He added: “I have the flexibility to get on the job.”
Boots launches its Christmas campaign this Sunday on ITV1. The ad focuses on dressing up for parties, with time-pushed women who want to look gorgeous.
No comments yet