British health and beauty chain Boots has reported a drop in overall like-for-like retail sales as it moved away from its non-core leisure ranges but health and beauty like-for-like sales rose 2.1%.
In the 13 weeks to December 30, overall like-for-like retail sales fell 1.5%, with total sales at Boots the Chemist, which contributes 85% of profits, down 2%.
The company said overall the more favourable sales mix had produced a good increase in gross margins and it was on track to deliver target savings in operating costs for the current year. The impact of the move away from non-core products was to reduce total Boots the Chemist sales by 5%.
Boots had warned in November, at the time of its first half results, that Christmas sales would be tight as it abandoned its leisure products ranges. It has pinned its hopes on sustaining key health and beauty lines, while investing in new growth areas as it expands into dentistry, opticians, nail bars and health clubs.
The company said it had seen strong growth in the new dental care and chiropody areas during the period, with 16 new dentalcare practices and 13 new chiropody practices opening between August and December.
Sales were poor in the Far East, however. International retail like-for-like sales fell 9.8% in the period with Thailand hardest hit, where like-for-like sales fell 13%.
The stock has outperformed the general retail sector by 17% in the past year but is only half the value it was trading at in January 1999.
Boots operate several stores throughout Ireland and bought out the HCR chemist chain soon after it entered the Irish market.
Meanwhile, British supermarket chain Safeway Plc reported today that like-for-like sales grew 5.9% in the 12 weeks to January 6, beating market's expectations of 4% to 5%. The UK's fourth biggest food retailer said in a third quarter trading update that like-for-like volumes were up 9.2% after disinflation of 3.3%.
