Health and beauty chain will press ahead with Middle East expansion
Health and beauty retailer Boots reported a slight fall in first-half sales today and warned there were few signs of improvement in the market.

The news comes as Boots unveiled plans to expand into the Middle East next spring. However, UK trading for the group has been sluggish.

Boots' pre-close statement showed a substantial dip in sales for the lifestyle category, but a much stronger performance by the core health and beauty business.

Like-for-like sales at the group's mainstay, Boots The Chemist, fell by 1.6 per cent during the second quarter and 1.3 per cent in the first half.

However the Nottingham-based retailer did report encouraging performance in its health/beauty and skin/dental categories. Beauty and toiletries sales were up 3.2 per cent for the quarter and 3.3 per cent for the half.

'Trading conditions have been difficult throughout the first half, with consumer spending softening. We see no sign that the market will get any easier for the rest of the year,' said Boots Group chief executive Richard Baker.

However, the impact of regulatory price deflation in Boots' dispensing category is estimated to have reduced overall like-for-like sales for The Boots Group by about 1 per cent.

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