The Weston family’s move to add a U.K. drugstore to its Canadian retail empire is “a good signal” for both sides, according to a retail analyst. Wittington Investments, the family’s holding company, announced on Wednesday that it will acquire Boots for $12.7 billion, including debt, from previous owner and private equity firm Sycamore Partners. “I think this positions the Weston family well to really invest in stores, invest online and really ... help the business get to new heights in the U.K.,” Bruce Winder told CTV News Channel the same day. The family already owns a long list of Canadian national and local chains including Loblaws, No Frills, Pharmaprix, Shoppers Drug Mart, Valu-mart, The Real Canadian Superstore and Zehrs. Winder likened Boots as significant to U.K. customers as “Shoppers Drug Mart is to Canada.” “They do need a little bit of help,” he added. He predicts that the acquisition will result in “an improved Boots.” “Better locations, more shoppable stores, much better online (experience), probably in the way of loyalty programs, health-care services, maybe expanded beauty services,” he said. Wittington will keep operational control and Galen Weston will serve as Boots’ chairman. In a press release on Wednesday, Weston described Boots as “one of Britain’s most enduring businesses, with a rich heritage, a trusted name and a vital role in everyday life across the U.K. and Ireland.” “We see a meaningful opportunity to make a great business even better through stable long-term ownership, further capital investment, and the renewed operating focus required to serve customers with excellence for generations to come,” he said. “They’re selectable,” Winder said of the family’s plans to grow its retail empire. “They have a good track record of taking brands that ... need some investment and nurturing them over the long term,” he said. “It’s a good signal for the U.K. market too that (the) Westons would invest in this company.” With files from The Canadian Press
