Boots has told head office employees that they should return to the office five days a week, in a bid to improve engagement and collaboration.
The new policy, which comes into operation in September, affects head office workers in London, Nottingham and Weybridge and reverses the retailer’s previous policy that established three-day office working.
Boots employs about 8,000 people at its Nottingham headquarters, which accounts for around 15% of its 52,000-strong UK workforce.
A Boots spokesperson said: “We are asking team members to make the office their usual place of work from 1 September.
“We really value the team spirit that comes with being together in person. There will of course still be times when working from home is necessary for either personal or business reasons.”
Boots’ UK managing director Seb James communicated the change in policy to employees earlier this week and said he wanted to make the business “more effective”.
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James said: “I have been very heartened by the way people have embraced the three-days-a-week model and I think you will agree that the office is a much more fun and inspiring place on those days.
“There is no doubt in my mind that the informal conversations, brief catch-ups and ability to meet in groups in person have been far more effective – and better for the Boots culture than the enforced formality of remote meetings. I know that has been true for me.”
He added that the company would upgrade its offices in the coming months, creating more quiet space, boosting wifi and improving canteen facilities.
The move comes as Boots looks to return to the London Stock Exchange after 17 years of private ownership, which could see the business return to the FTSE 100.
Tim Wentworth, the chief executive of Boots’ US parent company, Walgreens Boots Alliance, said in January: “Everything is on the table to enable more shareholder value.”
To cut costs, the retailer has set out a plan to close about 300 stores by June – bringing its total number down to 1,900 across the UK.
Cuts to operations, together with Walgreens’ decision to transfer Boots’ pension scheme to Legal & General for £4.8bn in November, are clues that the company is being prepared for a float, say analysts.
Jonathan De Mello, retail consultant and founder of JDM Retail, said: “Creating a lower cost, more streamlined business ahead of an IPO or sale is clearly the right thing to do – but Boots must not forget to invest in its stores.”
Boots’ shift to in-office working is in line with a growing trend. Last month it emerged that EY was monitoring individuals’ office attendance via turnstile data. Nationwide reversed its work from anywhere policy in January and Deutsche Bank announced that managers would have to be in the office at least four days a week, while junior employees must be in the office at least two-thirds of their time.
HS2 contractor Laing O’Rourke also ordered staff back to their desks last month, complaining that its offices were “too often sparsely populated”.
An internal memo said: “Engagement across our business is dropping. Coupled with the challenging 2023 financial performance, there is a need to change the way we go to work.”
Lloyds of London has also urged more staff back to the office.
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