In newly filed accounts Boots has reported a drop in both its revenues and profits for its most recent financial year.
In its strategic report for the year 31 August Boots posted revenues of £6.83bn down from £6.87bn the previous year. The beauty and pharmaceutical retailer also announced pre-tax profits of £498m again down from the £526m the previous year.
Boots attributed the negative performance to the “highly competitive nature of the costs of the health and beauty category”.
It also reported that at the year end for 2017 it operated 2,486 stores, a noticeable drop from 2,509 it reported in 2016.
In the strategic update, the company said: “Our retail stores are conveniently located and our pharmacists are well placed to provide a significant role in the provision of healthcare services, working closely with other primary healthcare providers in the communities we serve.
“The company’s revenue is subject to the influence of seasonality, with the second fiscal quarter typically the strongest as a result of the winter holiday period. This seasonality affects the company’s proportion of revenue between retail and pharmacy during certain months in the fiscal year.
“The company’s retail revenue, gross profit and gross margin are impacted by, among other things, the highly competitive nature of the costs of the health and beauty category. In particular, our own and our competitors’ pricing actions, promotional officers and events and our customer’s desire for value and convenience.”