Boots reports drop in sales

RETAILER Boots reported a fall in like-for-like sales yesterday, as it warned trading conditions were likely to remain tough in the coming months.

The group, which has stores in Britain and Ireland, posted a 0.8% decline in same-store sales at Boots the Chemists outlets for the first quarter of the financial year - a performance it called “reasonable” in a tough market.

Market analysts had been expecting a fall of between 1% and 2% for the period, which was up against strong trading figures from a year earlier. Boots said recently it was looking for like-for-like sales growth of between zero and 2% across this year, while also reinvesting in the business.

Chief executive Richard Baker said moves to re-establish the retailer as a health and beauty expert had started to pay off with growth in core markets, although trading was tough.

He said: “Conditions are difficult, competition is intense and nothing to suggest that this will change soon.” As well as 6% growth in sales of beauty products, Boots said business in over-the-counter medicines and toiletries had been strong.

Sales were weaker in the company’s lifestyle categories with a continued decline in the photo market and a slow start to its summer ranges.

Boots said volume growth in dispensing was offset by price deflation of 5%, which included the impact of regulatory price changes.