Christmas boost for Boots

A DAY after devastating its head office staff with news of 900 job cuts, Boots chief executive Richard Baker cheered the City by delivering solid Christmas sales figures and pledging full-year results in line with expectations.

Underlying sales at the core chemists chain advanced by 4.1% over the third quarter, to end-December, including a 6.4% rise in health, and a 4.2% gain in beauty and toiletries. It is the group‘s sixth consecutive quarter of growth.

Gross margin during the quarter is down by about 30 basis points, in line with expectations. The January sale is going well.

'Customers have responded well to the improvements we have made in our product ranges, value for money and service,' said Baker. 'The actions we have undertaken over the last few days underline our determination to build a modern, efficient and competitive Boots The Chemists.'

Baker, a former Asda high-flyer who joined Boots last September, said store managers had been given greater flexibility to extend opening hours and recruit staff. Prices are to be cut further, and opening hours will be extended Larger stores will open on Sundays. This will cost some £4m in the fourth quarter, and between £16m and £20m for a full year, offset by sales increases.

Baker remains confident about trading and says profits will be in line with expectations, excluding the £30m redundancy bill.