Health and beauty retailer Boots warned of lower profit margins today as the company's new chief gave his first impression of a "complicated organisation" that was "irritating" customers.
Chief executive Mr Richard Baker joined the chain six weeks ago from supermarket Asda with hopes he can revitalise Boots, which is battling cut-price grocers and has struggled to increase sales without sacrificing profit margin.
He said stores suffered a decade of neglect and that some customers found shopping at Boots "irritating" and suppliers found it a "complicated organisation".
Mr Baker cited several problems with the chain: "In some of the everyday areas like toiletries we are competitively challenged and we haven't reacted sufficiently quickly to that challenge."
There is speculation he will cut more of the 7,000 jobs at head office.
"The stores are in great locations but often in poor condition," he told reporters.
Strategy u-turns have left the customer confused but Mr Baker said, on the positive side Boots has a strong position in pharmacy and beauty which can be nurtured with investment.