British retailer Boots reported a modest rise in sales over Christmas, but admitted the figures left the group looking a bit sickly in the face of nimbler competition.
The UK's biggest health and beauty retailer has seen a significant slowdown in recent years, as supermarket giants muscle into its territory, but it has usually tried to put on a brave face.
Boots has 29 stores in Ireland, employing 1,200 staff. In a statement, the company said that Ireland was its best performing territory over the quarter with a sales increase of over 20%.
For the third quarter ended December 31, Boots said its group retail sales were up 2.4% on last year after stripping out new selling space. That beat analysts' expectations but the result was far from spectacular.
Sales at the group's Boots The Chemist chain, which has a 25% share of the health and beauty market and provides 85% of group profits, grew 2.2% on the same basis. Within that figure, health and beauty grew 4.4% and own brand products did well.
Analysts have criticised the group for spending too readily on experiments with new ventures like health clubs. The group's international retail ambitions have also taken a knock in Japan and Holland.
Within the group's other businesses growth was better. At Halfords, the bicycle and car accessory chain which faces constant speculation that it will be sold off, sales were up 3.7% on last year after investment in stores.
The healthcare division with owns brands like skincare label Clearasil, saw UK sales recover following the immediate negative impact of the abolition of price controls in the industry. Selling prices have been maintained.
Overseas retail operations in Thailand were affected by stock reductions in proprietary brands but margins were up. Wellbeing services were up 5.9% on a like-for-like basis with dentistry and footcare strong while the bigger opticians business delivered 1% growth in a competitive market.
