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 Ironically, the loyalty card has failed to catch on here and has been withdrawn.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 Howard Jacobson: Let's see the 'criticism' of Israel for what it really is
- 3 Do you know this man? Amnesia sufferer found in park pleads for help in identifying who he is
- 4 PornHub begs users to stop uploading video clips of Brazil getting beaten 7-1
Game of Thrones author George RR Martin says 'f*** you' to fans who fear he will die before finishing Westeros saga
Jennifer Lawrence face palms Emma Watson at Christian Dior show in Paris
Mick Jagger denies being World Cup curse and reason for Brazil’s embarrassing defeat
Gingers face extinction due to climate change, scientists warn
Do you know this man? Amnesia sufferer found in park pleads for help in identifying who he is
Sustained immigration has not harmed Britons' employment, say government advisers
British jihadist calls for 'flag of Islam' over Downing Street and Buckingham Palace
Australia facing international condemnation after turning around Sri Lankans at sea
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
There’s a nasty smell in the political air – and it’s coming from the Tories
iJobs Money & Business
£600 - £700 per day: Harrington Starr: AVS, JVS Openlink Endur Developer JVS, ...
£30000 per annum: Harrington Starr: A global leader in trading platforms and e...
£28000 per annum: Harrington Starr: A fast growing consultancy to the financia...
£30000 per annum: Harrington Starr: Technical Support Analyst - Liverpool Stre...