Weather slows Boots sales
Wellbeing services see strongest growth
July 25 2002
Boots has reported a modest sales increase of 2.5 per cent for the quarter to June 2002.
Like-for-like sales were up 1.5 per cent compared with the same quarter a year ago, with the poor early summer weather hitting sales of key product areas such as suncare and photo processing.
The core health and beauty product category saw sales increase by 2.7 per cent, or 1.9 per cent on a like-for-like basis. Within that, cosmetics and fragrance grew by 9.4 per cent, while weak sales of sun products meant toiletries declined by 1.6% per cent. Sales of over the counter pharmacy products and vitamins were flat, while pharmacy dispensing sales grew by 7.5 per cent. Photo sales declined by 8.5 per cent while baby products continued to grow with a 3 per cent increase. With Easter confestionery sales included in the previous quarter this year, food sales declined by 4.7 per cent.
Sales of Wellbeing services, a key area of development, for the company, increased by 22.9 per cent, or 12.1 per cent on a like-for-like basis. Boots Opticians sales increased by 13.2 per cent.
Chief executive, Steve Russell, said: “The first quarter was challenging – Boots Retail was up against strong results last year and our sales were affected by poor weather and one-off events.
Importantly, our recently announced programme of new product launches, store refurbishments and improvements to our supply chain are on track. We are confident that these initiatives will secure higher levels of sales increases as the year progresses.”
Sales at Boots International were up 8.4 per cent, and 6.7 per cent on a like-for-like basis. Halfords, which is to be sold to CVC Capital Partners, saw a sales increase of 5.5 per cent.
