 Boots has been squeezed by the supermarkets |
Health and beauty retailer Boots has seen a drop in first-half sales and expects trading conditions to remain "difficult" for the rest of the year. Like-for-like sales at its 1,400 outlet Boots The Chemist chain are likely to be down 1.3% in the six months from April to September, it said.
However, sales of beauty and toiletry products increased by 3.3%.
Boots said its planned sale of its over-the-counter medicines division remained on track.
 | ...we see no sign that the market will get any easier for the rest of the year. |
It is expected to raise more than �1.2bn from the sale of the Boots Healthcare International unit, and interested parties include GlaxosmithKline.
Weak spending
"The encouraging performance of our health and beauty businesses in a tough retail climate reflects our renewed focus and investment in these growing markets," said Boots chief executive Richard Baker.
"Trading conditions have been difficult throughout the first half with consumer spending softening further over the last quarter and we see no sign that the market will get any easier for the rest of the year.
"Our priority for the second half continues to be delivering for our customers while managing our trading margin, costs and working capital."
Back in April, Boots said profits were likely to be down in the 2005/06 financial year.
The Nottingham-based company has been hit by tough competition from supermarkets.