Betterlife Healthcare is building on its position as a key market player after achieving a 33% rise in operating profits, which amounted to nearly £1.6m in the year ended 31 March 2017.
Lloyds Pharmacy’s sister mobility brand has said in its latest financial report that the lack of one leading player in the market is an opportunity that will continue to be exploited.
The retailer’s turnover climbed by 9% to £24m after another successful year of pushing its online and physical channels as well as its own product range via other dealers and Lloyds Pharmacy stores.
The company’s directors said that moving forward, the firm will continue to focus on building the brand, developing its product offer and establishing an “aggressive but sustainable” tier pricing approach to gross profit.
Multi-channel growth continues to be key to the dealer’s expansion and it revealed to AMP in the summer that it plans to move further into internet retailing and that it believes it is well-equipped to deal with the threat from competitors like Amazon and eBay.
“We know that the consumer buying behaviour is not constrained to an in-store purchase and so we need to ensure that our business operates in that way and support the changing buying behaviours of our customers,” Brett Dawson, third party wholesale manager, said in an interview with AMP.
Betterlife noted however that competition from smaller online-only retailers and their price cutting is continuing to impact on some product line margin. But it added that the increased presence of its own product range is counteracting this impact.
“The business plans to develop new sales channels in the next financial year as well as increasing its wholesale business on a global scale,” directors said in the report, published with Companies House.
Betterlife’s results follow the shock news in October that Lloyds Pharmacy is to close or sell 190 of its branches. Cormac Tobin, chief of parent company Celesio UK, left the company soon after.
Betterlife Healthcare was founded by Grant Abrahams in 2003 who sold the business to Lloyds Pharmacy in 2010. Abrahams departed the firm this year to become Drive DeVilbiss’s new retail director.