Boots profits drop

Health and beauty retailer Boots today announced a drop in pre-tax trading profits of 19.6 percent to £163 million in the first half. This included a £45 million increase in costs for the investment in Boots' The Chemist chain, which boasts 1,400 stores. The retailer continued to invest in infrastructure, operations and prices in order to combat a tough retail climate. It opened seven new stores on the outskirts of cities in the first half, re-launched its own ranges and made-over its beauty halls.

Chief executive Richard Baker said in a conference call that he expected full-year costs to increase to about £90 million and assured his audience that further price cuts. Although customer numbers in stores dropped by 2.9 percent from last year, Baker said the company's Advantage loyalty card programme was showing increased activity per customer and higher spending per shopping basket.