Boots axes 19 Asian stores in rethink

BOOTS has unveiled a new strategy for its overseas retail business, focusing on compact units in stores owned by local retailers. The move will involve closing 19 stand-alone outlets in Thailand and Taiwan.

'This is much more capital light than our old strategy. It gives us access to footfall much more quickly and less expensively,' said chief executive Steve Russell.

Boots has struggled to find a profitable formula overseas and Boots Retail International has lost more than £120m in the past five years. The closure of 15 of the company's 67 stores in Thailand will cost £1.5m and four closures in Taiwan will also cost £1.5m.

But the company said international losses were set to fall significantly this year and next. 'We have done a lot of work on this business model and we are confident it works,' said Russell. 'We will be looking for opportunities in developing and developed markets.'

In Taiwan, it had agreed with leading drugstores chain Watson to roll out Boots implants in 100 stores over the next 15 months at a net cost of £2m. Boots units will also be opened in 20 Tops stores in Thailand. The new outlets will be 80% stocked with Boots' own label products and the rest of the stock will be exclusive to the company.

Boots operations in Italy and the Netherlands are performing in line with expectations.