Superdrug has returned to profit but it experienced a sales slip due to reduced high street footfall and health and beauty retailers becoming fiercely competitive.

Superdrug posted a pre-tax profit of £29m in the year to December 28, 2013, up from a £4m loss after exceptionals the previous year, in documents filed at Companies House.
Turnover fell slightly to £1.01bn from £1.02bn the prior year.

Superdrug said it had also been keeping control of cost despite a £15.1m exceptional charge when store leases were being pushed it into a loss in 2012. Superdrug estimated that the health and beauty market in 2013 was worth £13.1bn.

Superdrug did however explain that 2013 had been difficult environment to trade in and said that: “Growth was impacted by the continuing pressures on consumer income with reduced footfall on high streets, which was more significant outside of London.”

Peter Macnab, newly appointed managing director for AS Watson Health & Beauty UK, which owns Superdrug said: “The high street remains a challenging environment for all retailers, however, our sales momentum has been strong this year, we believe the plans we have put in place reflect our commitment and confidence in the future of UK retail.”

Superdrug said it is currently investing in a ‘Customer 360’ multichannel strategy that will make improvements to its technology and supply chains and it had also been growing its healthcare offers in store.

It had also launched a new healthcare store format in Banbury in May and today will be opening a new beauty format in Cardiff called Beauty Studio.