Think Again

SIX

Misleading Prejudgments

STEVE RUSSELL WAS joint managing director of Boots, Britain’s largest drugstore chain, between 1997 and 2000, and CEO between 2000 and 2004. We spoke to him in 2006, more than a year after he had resigned following a turbulent time as leader of the company. For years, “Boots the Chemist” was a household name, boasting dominant market share, high margins, and prime retail sites on every British high street. But the company’s dominant position left it little opportunity for further growth, and, more worrying, supermarket chains were expanding their range of drugstore products and taking market share.

When Russell became joint managing director, Boots had already tried a number of different ways of growing. One strategy ...