The AS Watson owned company posted a pre-tax loss of£45.9 million compared with a loss of£16.5 million the previous year. Its sales were£180.3 million, down from£316.3 million the previous year. During the year its store count was slashed from 424 to 241 shops.
A Savers spokeswoman said the business “experienced a significant operating loss in 2007 during a challenging trading period”.
She added that it was a year of transition as central and distribution functions were consolidated within AS Watson’s UK Health & Beauty businesses, restructuring the property portfolio and focusing on price.
“The management team is confident that the right strategy is now in place and is focused on returning the business to profitability,” she said. “Its strategy is well placed in the current economic climate and the last six months of trading have seen positive high double-digit like-for-like sales.”
In figures filed at Companies House, Savers said specialist retailers’ sales have been eroded as the grocers continue to gain share in health and beauty. It said that as a result, specialists were forced to maintain lower prices, putting pressure on margins.
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