Boots News Update: Boots Sets Its Sights On China
Boots News Update: Boots sets its sights on China was the headline recently from the newspaper, the Independent, announcing Boots’ plans to expand to China.
In what the newspaper called ‘fresh plans for global domination’, the Independent broke the story that the well-known high street retailer Boots is planning to expand its operation to China. This news has come at the end of another successful trading period for the pharmaceutical retail giants with the latest in several hikes in annual profits being recorded. There is no doubt that despite financial times being challenging in the retail sector Boots have managed to not only keep their head above water but have consistently managed to show profit in recent tough trading years when many other companies have failed.
Last year the massive pharmaceutical and wholesale goliath Alliance Boots did a landmark deal with the American giant Walgreens in a deal worth more than ten billion pounds, and it is thought that the success of that venture has set the wheels in motion for expansion to China and the continuation of the company’s world wide trading ambitions.
The executive chairman of Alliance Boots, Sefano Pessina is pressing ahead with expansion into China after the success of a deal in which Alliance Boots bought Nanjing Pharmaceuticals last year. All indications are that Boots is again set to post record profits with profits in double digits already recorded for the first quarter of this year.
Alliance Boots have had a very good run of financial success in recent years and were able to boast a bottom line of over six hundred and ninety million in the financial years between 2011 and 2012. Their innovation and the range of products offered are possibly some of the reasons for their success as well as the reputation they have gained for being reliable and dependable for their many millions of customers. Their specialist food sales offer diabetics in particular somewhere to buy diabetic tailoured products that can help them manage their condition. Boots optician is another great success and has many millions of customers every year. Health advice and aids to stop smoking are also strong lines for the retailer.
Boots News Update
The American side of the deal is still to be played out fully. Walgreens paid six and half billion pounds for the forty five percent of Alliance Boots that they acquired through the management and private equity firm KKR in 2012. It is expected that Walgreens will buy the rest of the company in 2015.
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