The UK's biggest chemist has announced a fall in profits, adding to the doom and gloom surrounding the retailing industry.

The results come in a week when the UK's best known retailer, Marks & Spencer, reported sharply lower profits.

Boots' profits fell by £2m to £251m in six months 30 September due to a downturn in consumer confidence.

The lower earnings came despite an increase in sales of 8%, to £2.3bn.

Boots' earnings have suffered

The company's chairman, Lord Blyth said that in recent weeks "there has clearly been a downturn in consumer confidence."

And a survey from the Confederation of British Industry published on Thursday confirmed that the retail sector's confidence had fallen to a three year low.

However the next eight weeks leading up to Christmas are the crucial trading period, and Boots says it is "better prepared than ever" for the big selling season.

Boots' claims that it can weather the storm helped bolster its shares, which had risen more than 8% to 937p by 1520 GMT.

Sales growth

Like-for-like sales at Boots the Chemist stores increased by 3.9%, boosted by the company's Advantage Card loyalty scheme.

There are over 9 million members of the scheme, and purchases linked to the card made up 40% of sales.

Boots invested £20m in new products including the launch of health and travel insurance and a mother and baby catalogue.

And Boots' motor accessory chain Halfords increased its profits by 22% to £23m on turnover of £233m.

The results exclude a loss of £318m on the sale of Boots DIY chain Do It All earlier in the year. Boots decided to exit from the sector which is now facing intense competition from KIngfisher's B&Q chain and Sainsbury's Home Base.

Boots has increased its dividend to 7.1p from 6.7p last time.