Value health and beauty chain Savers, part of the AS Watson Group, has narrowed its losses as it implements the second year of its turnaround.
For the year ending December 26, Savers reported an operating loss before exceptionals, interest and tax of £11.2m, down from £20.9m the previous year.
In figures filed at Companies House, the retailer said it has continued to see a “significant and regular increase in like-for-like sales in excess of 9% through improved product ranges and store standards”.
It said margins have also improved and cost saving initiatives have been reviewed to improve operational efficiency.
Savers is continuing its turnaround plan this year, with a focus on strengthened supplier relationships in a bid to offer the best value prices to customers, investment in new technology and a focus on customer service.
The retailer said it expects UK customers to continue to trade down to outlets that offer better value, especially on branded products, and will expand in new product ranges to meet this need.
It said the directors, which include Superdrug boss Jeremy Seigal, are “confident that the business is returning to profitability”.
Savers’ strategy is based on three key drivers: store locations in secondary sites with lower rents, prices of branded products significantly below the competition, and low operating costs to pass on the savings back to the customers.