Boots, the largest high street pharmacy chain in Britain, is saying goodbye to its chief executive as its owner’s plans for a potential £5bn sale or stock market listing have come to a halt. After leading the company since 2018, Sebastian James will be stepping down from his role in November. It has been reported that he has accepted a new position within the healthcare industry.
Mr. James’ departure follows the recent news that Walgreens Boots Alliance (WBA), the American owner of Boots, has decided for the second time in two years to not pursue a sale or stock market flotation of the chain. An official announcement regarding Mr. James’ resignation is expected in the coming days, as WBA has not yet announced a successor.
Mr. James, who previously served as the CEO of the electricals retailer Dixons (now named Currys), has recently endorsed Sir Keir Starmer – a noteworthy move due to his close friendship with Lord Cameron, the foreign secretary. His exit from Boots comes during the company’s 175th year in operation. With approximately 52,000 employees and 1,900 stores, Boots has been performing well, with WBA reporting a 6% increase in like-for-like sales during the quarter ending in May, and a 5.8% increase across its retail and pharmacy operations. An insider has stated that Mr. James has successfully led a turnaround for the company, with market share growing for 13 consecutive quarters.
WBA has faced significant challenges in recent years, resulting in a decline in its stock value. A spokesperson for WBA stated that while there is interest in Boots, the company remains committed to investing in its UK operations and finding innovative ways for the business to reach its full potential.
During a previous auction in 2022, only one bidder – a consortium of Apollo Global Management and Reliance Industries – submitted a formal offer of approximately £5.5bn. However, concerns about the global economy and the large debt involved in such a deal caused hesitation among major banks. Additionally, potential buyers were faced with the challenge of finding a solution for Boots’ £8bn pension scheme, one of the largest private retirement funds in the UK. This issue has since been resolved through an insurance deal with Legal & General.
Like many retailers, Boots faced difficulties during the pandemic, resulting in a restructuring that included 4,000 job cuts at its Nottingham head office and store management teams. Prior to the pandemic, Boots had also announced the closure of approximately 200 of its UK stores in response to changing consumer habits.
Boots has a rich history, dating back to 1849 when John Boot opened a herbal remedies store in Nottingham. In 1933, the company opened its 1000th store in the UK. In 2006, Boots merged with drug wholesaler Alliance Unichem, and was subsequently acquired by buyout firm KKR in an £11bn deal the following year. In 2012, Walgreens acquired a 45% stake in Alliance Boots, completing its buyout of the company two years later.
Boots declined to comment on Mr. James’ departure on Saturday.
