Booths, the distinguished supermarket known as the “Waitrose of the north,” has reported a significant decrease in annual losses, driven by sales that exceeded £300 million for the first time.

The Lancashire-based retailer saw a 6.7% increase in turnover, reaching £318.7 million in the fiscal year ending March. This growth was attributed to greater customer traffic, higher average basket sizes, and exceptional Christmas sales, along with an advantageous Easter period compared to the previous year. Additionally, the decision to minimize self-scanning tills throughout its store network has received positive feedback from shoppers.

Increased revenues have helped mitigate the financial impact of national living wage hikes, resulting in a reduction of pre-tax losses from £4 million to £1.6 million. The last recorded pre-tax profit was £3 million in 2022.

Founded in 1847 by Edwin Henry Booth, a young tea dealer who secured a loan of £80 to establish his first shop, The China House, Booths has grown to operate 27 stores across northern England, employing approximately 3,000 individuals.

While the chain celebrated its best Christmas sales on record, it faced challenges from the pandemic, rising operational costs, and competition from discount retailers like Aldi and Lidl during the ongoing cost of living crisis.

Edwin Booth, the current chairman and CEO and a direct descendant of the founder, has expressed concerns that rising inflation could negatively impact sales and profitability.

In its recent financial report, Booths described the past year as one characterized by “high inflationary pressures, elevated interest rates, and cost of living challenges,” although noted that these issues were less acute compared to the prior financial year.

“In light of these circumstances, we are pleased to share results that exceeded our initial expectations for the financial year, ensuring a sustainable foundation for future growth,” the company stated. “We continue to uphold our commitment to inspire and cater to our customers’ cravings for quality food and beverages.”

The declared dividends for the period amounted to 6p per share, totaling £76,000, down from 9p per share and £239,000 the previous year. The directors proposed a final dividend of 9.5p per share, which would total £119,000, a notable increase as no final dividend was issued last year.

Following the conclusion of the financial year, Booths sold its underperforming Hale Barns location to Asda for £1.75 million.

Looking ahead, Booths cautioned that while inflation is beginning to decline, it is likely to remain above average due to climatic impacts on the food supply chain. The retailer also highlighted that high interest rates would continue to affect financing costs without significant drops anticipated for the remainder of the current financial year.

In a notable move that pleased many customers, Booths became the first UK supermarket to nearly eliminate self-checkout tills last November, citing issues with their speed and reliability. The retailer emphasized their preference for “actual intelligence” over artificial alternatives.