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Booting up: through partnerships with CVS and Target, Boots has launched a U.S. invasion.

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Alliance Boots plc, the UK-based, pharmacy-led health and beauty group that operates in both wholesale and retail, began expanding its presence in North America this spring, significantly increasing distribution of its line of beauty products at Target stores and CVS pharmacies in the U.S. and Shoppers Drug Marts throughout Canada.

Beginning in April, Boots became available nationwide in over 1,500 Target stores and 500 CVS/pharmacy stores, with the largest presence in Southern California and the Southwest. Another 400 are located across Canada. Boots entered the U.S. with Target and CVS in 2004 at just 100 retail locations.

Boots has been making lots of news of late. It was recently purchased by a consortium led by private equity firm Kohlberg Kravis Roberts (KKR) in a deal worth approximately $22.2 billion (11.1bn [pounds sterling]). The deal was, according to news sources in Europe, the UK's single largest private equity takeover, and made Boots the first company to fall into private hands while listed on London's FTSE 100 index.

Boots' wholesale and distribution network serves over 125,000 pharmacies, hospitals and health centers via 380 depots in 14 countries. The company was established in England in 1849, and holds a Royal Warrant--a highly distinguished mark of recognition for companies who regularly supply goods to the Royal Family.

The company has a retail network of approximately 3,000 outlets in seven countries, of which over 2,700 have pharmacies. Retail healthcare outlets are in Republic of Ireland, Italy, The Netherlands, Norway, Thailand and the UK. Associate retail healthcare outlets are in Italy and Switzerland.

ENDING THE PILOT TEST

Boots came to North America with Target and CVS three years ago. Since then, it has been "piloting our offer to figure out the right stress to use in the USA," says Martin Waters ,CEO of Boots Retail USA Inc. (Stamford, CT). "We launched during 2004 in a handful of stores just to see what would happen." Expansion came two years later,...

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