Major changes in Boots Opticians

  • Sales down 10.5% to £83m
  • Driving efficiency through integration into BTC
    • Short term disruption
  • Difficult market conditions
    • Affected by slower consumer spending
  • Market expected to remain tough in H2
    • Contact lens deregulation

Notes

Sales in Boots Opticians were down 10.5% to £83m.

The first half has seen some major changes in Boots Opticians as the programme to integrate the business into BTC has gained pace. A key part of the process is to integrate the management with that of Boots The Chemists.

The integration process will reduce the cost base and drive efficiency but inevitably causes a level of disruption that affects sales in the short term.

This disruption, together with a downturn in the market as consumers have delayed the purchase of glasses, has led to sales being down in the half.

The integration process is making good progress and we therefore expect disruption to begin to ease. However the market is expected to remain tough in H2 with the additional impact of price deflation following the deregulation of contact lenses.

Provided by Investis