Northern supermarket chain Booths has reported a remarkable 73 per cent rise in full-year pre-tax profits, on sales up 5.4 per cent to £243.6 million.
The upmarket group, which benchmarks itself against rivals Waitrose and Marks & Spencer, has far outperformed its premium sector foes, registering a 3.8 per cent increase in like-for-like sales in the year to March 29.
Although it could be argued that the figures represent the period before the credit crunch took hold, M&S like-for-like sales dropped in the same period, and Waitrose reported a slowdown in its growth in the six months to July 26.
Booths introduced price guarantees of 50p for five different types of fruit and vegetable in the summer - seen by some as its first foray into the supermarket price war scenario. Chairman Edwin Booth told the Grocer Booths is proving increasingly competitive with its basic grocery offer and will be running more promotions in the near term. “While enriching our promotional offer, the company has not lost sight of its core activity of selling high-quality food and drink in attractive stores with excellent service,” he said.
Profit levels had dipped in the previous 12 months, but investments in chip and PIN rebranding and stock control have restored the chain “back where it should be”, according to Booth.
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