Weather dampens Boots sales growth
Thursday, 30 September 2004Chemist chain Boots has reported a cooling in sales growth after disappointing summer weather stalled demand for suncare products.
The group said like-for-like sales at Boots The Chemists grew by 3.3% over the last three months, down from the 4.4% seen in the previous quarter.
Margins were also lower as customers bought more lower prices products and fewer higher margin seasonal products.
Chief executive Richard Baker described the performance as 'encouraging' and said the company had made 'substantial progress' during the first half - a period in which like-for-like sales grew by 3.8%.
Progress for the full financial year will now hinge on the Christmas period, when Boots will recruit an additional 4,500 workers and invite head office workers to help out on the shop floor.
The company's fortunes have shown signs of improvement over the last year after a 2.7% rise in annual profits and a healthier sales trend in the wake of initiatives aimed at tackling greater competition from supermarkets.
