Superdrug, the AS Watson-owned health and beauty retailer, plunged to a pre-tax loss last year, but said its sales performance had improved in 2009.
Jeremy Seigal, the chief executive of AS Watson Health & Beauty UK, largely attributed the loss at the 911-store retailer to it investing margin in clearing "a lot of slow-moving and the wrong stock". Superdrug has removed about 80 per cent of the old stock, which included some MP3 and DVD players. For the year to 27 December 2008, Superdrug posted a pre-tax loss of £7.4m, compared with a profit of £21.6m the year before, according to accounts filed at Companies House yesterday. The retailer's total sales fell marginally by 2 per cent to £1.07bn over the period.
But Mr Seigal said its like-for-like sales were up by 0.9 per cent for the year to date, boosted by the launch of its Superprices campaign in the spring. He said: "We are continuing to grow core beauty share and will continue to expand our value proposition later this year." Superdrug has agreed with its owners, Hutchison Whampoa, a £85m credit facility that matures in 2012.Reuse content