First-half profits at Boots have dropped as the British health and beauty retailer modernises its stores and image amid tough competition on the high street.
First-half pretax profits fell to £198.8 million sterling, a sharp drop from the £267.6 million posted for the year-ago period as capital investments increased by £52 million to £140 million.
The pretax figure, slightly below the average market consensus forecast of £205 million but within the forecast range, does not include a £55 million charge taken as Boots pulls out of therapeutic areas such as laser eyecare and dentistry.
The retailer, which is facing fierce competition from supermarket chains such as Tesco and Asda in its traditional over-the-counter pharmacy business, is extending opening hours and revamping its infrastructure.
The retailer said its "Getting in Shape" efficiency programmes - including job cuts, new IT systems and supply-chain improvements - were on track.
But Boots said today it was putting its self-reinvention on hold until next year to avoid in-store disruption as it fills its shelves with products for the crucial Christmas season alongside standard goods.