The Investment Column: Boots card proves a major advantage
Friday 05 June 1998
This criticism aside, there's little doubt that the Advantage card has paid off. In just nine months Boots has issued 8 million of the cards, and over the year to March they accounted for 1.8 per cent of the growth in counter sales at Boots the Chemists. Apart from the profit that the card is generating, Boots also gets a wealth of information on spending patterns that it didn't have before.
The chemists chain remains the jewel in Boots' crown, producing like- for-like sales of more than 5 per cent. The Opticians branches, though a relatively small part of the group, stormed ahead with same store sales rising by a fifth. So it's not surprising to hear that the group is increasing its spending on the Opticians chains, while opening a further 30 superstores this year.
In other retail formats, however, success remains as elusive as ever. Halfords lifted like- for-like sales by just 3 per cent, although selling more own-brand goods helped boost profits by 28 per cent. Trading at DIY chain Do It All continued to be dull, with underlying sales up 6 per cent on a same-store basis. Ironically, the loyalty card has failed to catch on here and has been withdrawn.
Boots was keeping mum on reports that financial investors want to buy Do It All, though it would undoubtedly like to sell. However, Boots' growth - and its share price - will continue to depend on the performance of the chemists chain. On profit forecasts of pounds 620m the shares, up 28.5p to 984p yesterday, trade on a forward multiple of 21. Still good value.
- 1 Rarest Beanie Baby bought for just £10 at car boot sale could be sold for £62,500 on eBay
- 3 Giorgio Armani criticises the way some gay men dress saying 'a man has to be a man'
Rarest Beanie Baby bought for just £10 at car boot sale could be sold for £62,500 on eBay
Katie Hopkins and The Sun editor David Dinsmore reported to police for incitement to racial hatred following migrant boat column
'Jihadi John': Isis executioner Mohammed Emwazi wanted to wage jihad in Somalia until his friends were betrayed and killed by al-Shabaab
Parma, Missouri: 80 per cent of town's police quit after first black mayor is elected
Australian student Tommy Connolly, 23, adopts his pregnant, homeless 17-year-old cousin to give her a chance at 'a better life'
If I’m being racially abused I don’t need a stranger with a saviour complex to rescue me
The only black face in the Ukip manifesto is on the page about overseas aid
Ukip is the only main political party to not address LGBT rights in its manifesto
Food banks: One million Britons will soon be using them, according to Trussell Trust
Religion isn't growing, it is becoming vigorous in its demise, says philosopher AC Grayling
BBC election debate: The one photo that summed up the whole 90-minute leaders debate
iJobs Money & Business
£60000 - £70000 per annum + benefits : Ashdown Group: A highly successful, glo...
£30 - 35k (DOE): Guru Careers: We are seeking a Pricing Analyst with experienc...
£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...
£21000 - £24000 per annum: Ashdown Group: The Ashdown Group has been engaged b...