In figures filed at Companies House this week, the AS Watson-owned retailer reported pre-tax profits dropped from£22.2 million in 2006 to£21.6 million for the full year to December 29, 2007. Operating profit fell from£27.3 million in 2006 to£26.5 million last year.
Jeremy Seigal, chief executive of AS Watson’s UK health and beauty arm, said: “The market is expected to remain competitive. However, we are confident in maintaining this level of performance in future.”
In the accounts, Superdrug said it was continuing to differentiate its offer to position itself as a fashion-led health and beauty retailer. Grocers are increasingly stealing health and beauty market share through store expansion, it said. “With grocers taking such a large share of the market, achieving a relevant enough proposition to attract footfall and high sales volumes is becoming increasingly difficult,” Superdrug explained.
During the year, the retailer converted 162 of its 230 Savers stores to the Superdrug format and opened 11 stores. It also trialled its next-generation pink fascia stores and gave 401 stores a “beauty facelift”, which involved increasing the amount of store space dedicated to cosmetics and introducing new brands.
Seigal, who was promoted in April this year following the departure of Euan Sutherland to Kingfisher, added: “We will continue our strategy of fashion-led health and beauty at the best value prices while improving our in-store experience through investment in service and new store formats.”
Superdrug has increased its Christmas gifts range by about 20 per cent for this year, placing more emphasis on its value offers as the credit crunch bites. It will have an extensive range of gifts under£10,£5,£3 and£1.
This week, Superdrug is launching its men’s make-up range, called Taxi Man.
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