BOOTS is braced for one of its toughest years ever – despite growing its Christmas sales.

The comments by Alex Gourlay, chief executive of the Alliance Boots health and beauty division, came after Boots UK saw revenues grow by 5.1% over the 12-week Christmas period.

Boots joined other retailers, such as John Lewis Partnership, to persuade customers to go shopping despite the worst recession since the war.

The health and beauty retailer has invested heavily in a new automated warehouse at Beeston to keep the shelves of its 2,600 stores filled.

Mr Gourlay said the improved supply chain had helped free up shop staff to look after customers.

He added that the Christmas performance was helped by a strong gift offer and value in its beauty sales, led by its No7 cosmetics range.

Boots won market share in fragrance, skincare and "indulgent" toiletries. On a like for like basis, sales grew by 4.6%.

Group revenues at parent company Alliance Boots were up 10.2% in the quarter to December 31, 2009.

Group chief executive Andy Hornby said this was despite the weak global economy and pressure on both governmental and consumer spending.

He said: "As a result, we continue to be ahead of our expectations at the time our 2008-9 annual review was published, putting us well on track to deliver our 2009-10 operational and financial targets.

"At the same time, we have made good progress in developing and adapting our businesses to make them more efficient and responsive to market developments and evolving customer needs."

He said double-digit growth continued the trend reported in October, 2009. Mr Hornby said the growth came across many product categories. He said customers particularly appreciated Christmas offers, such as the No7 Protect & Perfect gift set.

Dispensing volumes in the quarter increased by 3.8% and revenues in the pharmaceutical wholesale division were up 12.7%.

"The group's financial position remains strong, reflecting a continuing focus on profit generation and working-capital management, and the benefits of low interest rates," Mr Hornby said in a letter to staff. But he warned that the economic and financial climate will make 2010 another tough year.

"This means that we will have to continue to work hard to meet our targets for the final quarter of our financial year," he added.

"I am confident that we will achieve these and report another year of strong profit growth in May."

Mr Gourlay said Boots had benefited from customers who returned in hard times to trusted brands. He said 2010 will be a challenging year.

"We will give strong value and customer care. We will also drive our pharmacy and healthcare business even harder."

Boots revamped its website last October, and it is attracting record numbers seeking health advice.

"It is becoming the first port of call for a healthcare solution," said Mr Gourlay.

He said the site was also driving sales. The coming year will be hard with potential interest rate rises and inflation, he added.

richard.tresidder@ nottinghameveningpost.co.uk