Boots must look beyond loyalty cards, promotions and embrace new tech

Under pressure Boots should overhaul its tired physical estate and bring online in-store, according to Infosys Consulting’s Manu Tyagi.

He was speaking as it emerged that more than 200 Boots stores across the UK could be closed by its American owners Walgreens Boots Alliance (WBA) in a bid to cut costs. “There has been no shortage of headlines around store closures and failing retail chains in the UK in recent months, but some retailers are able to thrive in the same challenging market.”

Boots runs a large store base with about 2,500 stores in the UK, and incurs significant overheads on rents, wages and business rates. Nonetheless, these stores are often perceived as tired and old school, with very little change over the years. A stalwart of the British High Street, Boots has been trying to overcome the challenges from footfall decline, an overall squeeze on margins and more nimble competitors performing better online and in-store.

And it should learn from the online shopping boom to meet the needs of how consumers want to be engaged now, adapting to changing consumer behaviour and finding ways to create a stand-out experience by bringing together the benefits of online and offline. “Effective targeting, merging physical and digital marketing to attract and acquire new customers, and deploying data – through digital outreach and loyalty tools – will help retain and grow business for retailers,” Tyagi said.

“Boots will be feeling the pressure from more nimble, innovative retailers, who are using technology to deliver better customer experience, more efficient supply chains, more choice, and crucially, lower costs. Promotions and loyalty cards are no longer enough to ensure a personalised, individual experience and to grow sales,” he argued.

“Each shopper responds to different offers and loyalty tactics, so Boots must go beyond this. Putting the customer experience first, focusing on convenience and cost, and embracing new technologies are all important parts of the jigsaw. Only then can Boots and its fellow retailers trend their sales upwards – both online and in stores.”