Doubts over the future of Boots Opticians among patients and staff adversely affected its 2004-2005 performance.
Doubts over the future of Boots Opticians among patients and staff adversely affected its 2004-2005 performance.
The high street chain saw operating profits slump by 67.4 per cent in part because the closure of its Lasik interest led some consumers to believe Boots was pulling out of optics altogether. It resulted in a 'degree of uncertainty' among staff about the way ahead. Tough trading on the high street did not help either.Presenting the Boots Group's finances for the year to March 31, chief executive Richard Baker revealed that 'the first few weeks of the new financial year confirms that demand on the high street remains subdued'.
For Boots Opticians, business was particularly subdued when its new figures were compared to the previous 12 months. For 2004-2005 sales were £182.5m, down from the previous yearly figure of £199.7m. Growth tumbled by 8.6 per cent, and on a like-for-like basis it fell 4.7 per cent. Profit before tax dropped from £12.9m to £4.2m.
To the City, the company continued the mantra that Boots Opticians is 'being integrated into Boots the Chemist', a process originally announced in October 2003.
Nevertheless, going forward, this integration is key to its recovery, said a spokesman, giving a 'greater focus to day-to-day management and drive efficiency' .
'Boots Opticians had a difficult year. Sales fell owing to disruption from the exit from dentistry and lower consumer spending on fashion items in the fourth quarter.' he said.
However, 'operationally the business has introduced more competitive pricing, wider ranges and a greater emphasis on the quality of service,'
David Cartwright, Boots Opticians' director of professional services, said: 'After a good 2003-04, these are results that need improving on.'
He said plans to make sure sales and profits grew in future were based on greater involvement of practitioners in the business, and the integration with Boots the Chemist.