Upmarket northern supermarket chain Booths says it has acted to improve its performance after profits took a dive last year.

The Preston-based retailer suffered a 38% drop in pre-tax profits from £7.4m to £4.6m for the year to

1 April 2006, on sales up 6% to £215m.

Chairman Edwin Booth told The Grocer the company had taken steps to improve its stock efficiency, particularly in fresh food.

This would lead to a reduction in waste while retaining strong availability. Both would benefit the bottom line, he claimed, adding that there were already signs of recovery.

"Things are certainly looking a lot better than last year," he said. "We have seen some storming numbers coming through in the last few weeks."

Booth also revealed that plans were well advanced for the group's next store opening - a 20,000 sq ft supermarket in Lytham St Annes.

Due to open in Septem­ber, it will be home to Booths' second artisan restaurant. The other, at the retailer's store in Kendal, had been a hit with shoppers, said Booth.

Meanwhile, the company, which is fifth on The Grocer's ranking of the UK's Top 50 independent retailers, has joined the growing list of companies doing their bit for the environment.

New procedures for giving plastic bags to shoppers have cut bag usage by 25% in three months at two stores taking part in a trial.

Bags are stored under the till, out of shoppers' sight, and if a customer wants bags, they must ask for them. The customer is given them - but is told the store is looking to cut its use of bags.

Booth said the chain would be rolling the scheme out to the rest of its 26-strong estate.

"We not only have to look after our economic future, but also our ecological future," he said.

"It is important that we get into the mind-set of our customers and this is something that they tell us they want. In this case it will actually cost us less to serve our customers."

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