Alex Baldock is about to take on a significant challenge as he prepares to lead Boots, the beloved chemist that has been a staple of British life since 1849. His task will be to revitalize the brand and attract new customers, convincing them that Boots offers a superior experience compared to competitors like Amazon and Superdrug.
A Proven Track Record
Baldock's supporters, and there are many in the City, point to his previous successes. When he became chief executive of Currys eight years ago, the company was widely considered to be heading for oblivion. Instead, he turned it around, making it a high street staple and a go-to destination for electronics. Baldock, now 55, is not your typical retailer. He is not a flamboyant figure like Sir Philip Green, nor a battle-hardened trader who started on the shop floor. He is, by his own admission, somewhat posh.
Background and Style
Baldock holds a double first degree from Worcester College, Oxford, and is a history enthusiast. He grew up in Paris and attended boarding school in Northamptonshire. He has described his upbringing as privileged, not defensively but as a matter of fact. Colleagues say he is also quite fun. While he kept a low profile as the boss of Shop Direct (now the Very Group), at Currys he became outspoken, criticizing government policies on employment costs and business rates. In a Times article earlier this year, he argued that growth is essential to fund public services and reduce the number of people on sickness benefits.
Challenges at Boots
At Boots, Baldock faces a different set of challenges. He will have to navigate the influence of Italian billionaire Stefano Pessina, a part-owner who is known for his charisma and hands-on approach. Baldock will lead Boots in the UK, Ireland, and Thailand, but not in Mexico or Germany, which analysts expect will be sold before any potential flotation. Boots has some advantages over Currys: it has already regained some of its sparkle, thanks to the wellness trend that has brought new shoppers into stores. The company boasts 52,000 staff, 17 million Advantage Card members, 8 million regular app users, and 80% of the population living within 10 minutes of a store.
Unique Position
Even customers who rely on Amazon for many purchases often turn to Boots for health-related needs, such as consulting a pharmacist about a rash. Boots also serves a social function as a near-extension of the NHS, delivering prescriptions and health advice. This makes it both a national treasure and a resource that should not be exploited.
The Flotation Question
Rumors suggest Baldock will prepare Boots for a stock market flotation that could value the company at £7 billion. The key question is whether to use existing investors' money to spruce up stores before the float or to rely on new investors afterward. Many of the 1,800 stores need a refresh, as the shiny new Boots in London are not representative of the rest. However, investing in stores on dying high streets could be wasteful.
One City supporter notes, "Boots at its best is very good, but it isn't always at its best. And there is the very long shadow of Pessina in the background." Another adds, "He has an unfair reputation for being terribly serious. He is more fun than people think and has a fantastic ability to connect with people. He just has high expectations." As CEO of Boots, the expectations will now be on him.
