Superdrug has reduced its losses in the full year to December 26, 2009, by improving margins and reducing operating costs.
Superdrug has reported a pre-tax loss of £243,000 against a loss the year before of £7.4m. At an operating profit level it has pulled itself out of the red to report profit of £6m against a loss of £2.4m the previous year.
Sales were flat at £1.1bn.
In its figures filed at Companies House, the retailer said a slowdown in new shopping centre construction and an increase in vacant property has impacted footfall in certain locations. It also said supermarket expansion has continued to put pressure on specialist retailers. However, it said consumers are increasingly seeking value in the recession.
It said Superdrug has reviewed cost saving initiatives in the year, carrying less stock and liquidating slow moving stock more quickly.
It said it is seeking to become more flexible in its approach to local store needs, and will focus on value further by working with suppliers on pricing and promotions. It will also seek to train its customer facing staff further to refocus on customer service.