TUMBLING sales of foods linked to the Atkins diet contributed to a further fall in turnover at Boots, this spring the retailer revealed yesterday.

“That particular fad is over,” said Richard Baker, chief executive of Boots, adding that sales of Atkins foods slumped 30 per cent year on year at the chain.

A 2.5 per cent decline in sales of “lifestyle” merchandise including food, photography, sunglasses and beach wear was largely responsible for a 0.4 per cent slip in underlying sales in the three months to the end of June, compared with a 0.7 per cent rise in the previous three months.

However, shares in Boots rose 2½p to 615½p as analysts said that the sales performance was slightly better than expected and the retailer said that it still expected to meet its targets of stable margins and a 0 to 2 per cent rise in underlying sales for the year.

Mr Baker said: “This is a reasonable performance in a tough market against our strongest trading period last year. Conditions on the high street are difficult, competition is intense and there is nothing to suggest this will change in the coming months.”

He said Boots would continue its strategy of reestablishing its position as a health and beauty expert and that a 5 per cent increase in the volume of items dispensed from its pharmacies reflected the success of this focus. The retailer has applied for 35 new pharmacy licences with 32 of these already approved.

Mr Baker said investment in new beauty halls and the promotion of own-brands such as No 7 cosmetics had delivered a 6 per cent rise in beauty sales while strong advertising drove a double-digit rise in sales of sun creams.

However, one analyst said the company’s estimates were “optimistic” and that Mr Baker was under considerable pressure to step up sales growth.

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