Health and beauty chain Boots is to boost investment at its core chemist stores in a fierce sales battle with supermarkets.
But its shares slumped by more than 10% after the firm said the move would hit future profits.
Boots, which is aiming to maintain a sales revival against supermarkets such as Tesco, reported strong fourth quarter sales and said it expected to meet market profit expectations for the current year to March 31.
But the market focused on news that the £390m investment programme would hit profits in 2004/05. The retailer also said it would continue to cut prices.
Chief executive Richard Baker said the speeded up investment in its main Boots the Chemists business during 2004/2005 was aimed at improving competitiveness and modernising the chain.
Boot has also announced that it is to open its 33rd Irish store in Naas, County Kildare. The company intends to open another 12 outlets in Ireland over the next three years, bringing the number employed by the firm in Ireland from 1,200 to 1,500.
