October 4, 2010

Alliance Boots today announces a programme within the UK part of its Health & Beauty Division and related contract manufacturing activities to provide best in class support for stores and drive future growth. The programme, which focuses on optimising end-to-end business processes, includes moving to a leaner central support organisation, supported by new systems, a streamlining of manufacturing operations and optimisation of supply chain activities. It does not affect the employee base within UK stores.

Over the next three years, the programme will result in a reduction of around 900 non-store based roles in the UK, the majority of which are in Nottingham. This represents under 10% of the UK non-store workforce of these businesses. Where possible, the reduction will be achieved through staff turnover and by offering redeployment to other areas within the Group.  The restructuring programme is targeted to reduce operating costs by around £56 million per annum by 2013/14.  Related exceptional charges are expected to total around £67 million.

Alex Gourlay, Chief Executive of the Health & Beauty Division, Alliance Boots, comments: “Since 2007 we have undertaken a number of steps to make our business more robust, investing significantly in our stores and commercial offering. This latest phase will enable us to have a stronger and more agile support infrastructure fit for the long-term future.

”Our intention is to be open and transparent about how we see the future, but we understand the impact that today’s announcement may have on our people. The leadership team is fully committed to supporting them in the months ahead as we further evolve our organisation.”


Editor's notes:

Alliance Boots is a leading international pharmacy-led health and beauty group offering a wide range of products and services to our customers working in close partnership with manufacturers and pharmacists. Our two core business activities are pharmacy-led health and beauty retailing and pharmaceutical wholesaling. Alliance Boots is privately-owned and employs over 115,000* people, including some 70,000 in the UK. Its wholesale and distribution network serves over 150,000* pharmacies, doctors, health centres and hospitals from over 360* pharmaceutical wholesale distribution centres in 16* countries. We operate more than 3,250* health and beauty retail stores in nine* countries, of which just under 3,150* have a pharmacy.

 * Figures stated are as at 31 March 2010, are approximate and include associates and joint ventures.

For further information, please contact: 
Yves Romestan / Sanam Conway, Alliance Boots. Tel: +44 (0) 1932 871 400
James Murgatroyd / Katie Lang, Finsbury. Tel: +44 (0) 207 251 3801

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