Under more nurturing ownership, the chain should have been able to become the online health, beauty, and logistics goliath that Moulding convinced his cheerleaders he was well on the way to building.
This would have enabled it to capitalise on the pandemic in the same way that the supermarkets were able to. But low-grade digital capabilities meant one of the biggest operators of pharmaceuticals stores and a drugs supply network was left to rue a massive missed opportunity as shoppers were forced to stay at home during repeated lockdowns.
Sales halved at the height of the crisis, the value of Boots was written down by $2bn and it crashed to a £258m annual loss. Some 6,500 jobs out of around 60,000 were axed and the plug pulled on 200 stores, including nearly 50 opticians branches. It also provoked the fury of landlords by unilaterally suspending rent payments despite its shops remaining open.
With Walgreens reportedly looking to shrink its vast operations, and focus greater resources on its home North American market, a question mark once again hangs over the future of Boots, which represents less than 5pc of Walgreens’ $132.5bn annual sales.
City dealmakers envisage a swoop from one of the big supermarkets keen to uncover new avenues for growth but with Morrisons and Asda about to embark on their own period of debt-laden, private equity ownership, Boots risks jumping out of the frying pan into the fire.
Other buyout firms may come knocking but the government may not look kindly on a provider of crucial pharmacy services ending up back in the hands of profit-driven, short-term investors if the Omicron variant triggers another surge in Covid cases.
It is tempting to call for a return to the relative safety of the stockmarket but with Boots still lumbered with 2,200 stores that may prove wishful thinking. Whatever the outcome, it is crucial that the chain ends up in the right hands. After the mismanagement of the last decade there is an opportunity to revitalise a stalwart of the high street and a major UK employer.
