Boots sales slip in second quarter
High street retailer heralds ‘solid’ performance
October 10 2003
Boots is hoping for a boost from Christmas sales after retail sales growth slowed in the second quarter.
Across the first half, total sales in the Boots the Chemist chain grew by 3.8 per cent with like-for-likes up 3.6 per cent. In the second quarter, total retail sales were up 3 per cent and like-for-likes up 2.9 per cent.
Chief financial officer Howard Dodd said: “Second quarter trading continued the pattern of solid growth in Boots The Chemists. We now move into the second half with our focus on the busy Q3 trading period.
“This year we have a bigger and better seasonal offer available in more stores as we aim to improve on last year’s excellent Christmas.”
The main contributors to sales growth across the quarter were dispensing sales, up 5.5 per cent, healthcare, up by 4.2 per cent, and cosmetics and fragrance, up 4.7 per cent.
Sales of suncare products were up 15 per cent, boosted by expanded range and the good summer weather. However, Boots said it saw no other benefits from the warm spell, which generally kept UK shoppers away from the high streets.
Boots said its gross margin for the half was flat, in line with expectations, and its cost saving and investment programmes remain on track. The Boots Healthcare International saw sales up 7 per cent in local currency, with increases across all major brands.
