Boots is returning to basics

In a trading statement the company also warned that its profits would be at the lower end of City forecasts.

And it said it would close down its loss-making European operations and spend money on simplifying and improving its business in the Far East.

The news was enough to send the firm's shares down more than 6% when the markets opened. By mid-morning shares were 4% lower at 555 pence.

Boots said it was shutting its 12 Wellbeing centres around the country and was withdrawing from all Wellbeing services apart from dental care and chiropody.

It is also abandoning its Pure Beauty concept and will either close its six existing stores or convert them into Boots the Chemist.

Shareholder pressure

The company came up with the idea of the Wellbeing and Pure Beauty brands as a way of enticing customers into the stores in the face of intense competition from supermarkets.

But the idea has not worked.

When you've done the tests and you've tried various things and it doesn't work the best thing to do is bite the bullet and that's what we've done John McGrath, Chairman of Boots

New services such as botox injections, osteopathy, reflexology and weight management have simply failed to attract customers in big numbers.

"This (Wellbeing) was the thing that was going to differentiate them from supermarkets," said Iain McDonald at Numis Securities.

"Now they're not doing it, it's back to the core business where we know life's very competitive and probably going to get even more competitive."

The first Wellbeing centres in London's Kensington and in Milton Keynes opened two-and-a-half years ago and the Pure Beauty stores first appeared in September 2001.

New boss

Even as Boots was attempting to improve its performance, shareholders made it clear they wanted more done to sort out the business and improve its share price.

In its statement Boots said it was determined "to invest only where there is clear potential to provide an appropriate return to shareholders".

"When you've done the tests and you've tried various things and it doesn't work the best thing to do is bite the bullet and that's what we've done," Chairman John McGrath told reporters.

In December the company said it was searching for a new chief executive to replace Steve Russell who has overseen the failed experiment.

The company has not said when a new boss will take over.