Like-for-like sales down 0.7 per cent
Health and beauty retailer Boots has reported steady Christmas trading figures ahead of its proposed merger with Alliance UniChem.

Excluding the impact of Government-imposed price regulations on prescriptions (PPRS), like-for-like sales at the group were down 0.7 per cent, better than some analysts had expected.

Seymour Pierce analyst Richard Ratner said: 'This is better than we had feared. Everything else appears to be in line.'

Underlying like-for-like sales increased by 0.3 per cent before PPRS and the group experienced an increase in total sales of 3.8 per cent over the third quarter.

Boots chief executive Richard Baker said: 'Although the ongoing retail environment remains tough and we see no signs of this easing in the short term, we are encouraged by this performance and by the long-term opportunities developing in our key markets.'

Over the three-month period from October 1 to December 31, the retailer's health category increased sales by 2.8 per cent, outstripping beauty and toiletries, up 0.9 per cent, and lifestyle, down 2 per cent.

Sales of over-the-counter healthcare increased by 2.7 per cent as the volume of dispensing increased to 2.8 per cent.

However, the outlook remains uncertain as gross margins and operating costs for the year remain unchanged.