BTC operating costs
| 12 months to 31st March (£m increase) | 2005 | |
|---|---|---|
| Inflation | 40 | |
| Volume | 20 | |
| Productivity / GiS | (90) | |
| (30) | ||
| Pension | 15 | |
| Existing stores/trading | 45 | |
| IT Infrastructure/tills | 35 | |
| New space/formats | 35 | |
| YoY cost increase | 100 | +7% |
Notes
BTC operating costs were up 7% in the year. This added around £100 million to the cost base as we described in the April pre-close statement.
Inflation added £40 million reflecting the pressures on costs from minimum wage, rent, rates and utilities. Increased volume of activities drove higher costs in store labour and distribution. These effects were more than offset by productivity gains, including lower Getting in Shape costs and higher Getting in Shape savings, which contributed a total of £90 million. Underlying costs were thus lower in the year.
Pension costs were up £15 million following the receipt of the latest actuarial valuation.
An additional £45 million has been spent in existing stores including salaries for staffing extended trading hours and new baby departments, increased pharmacist salaries for new services and the costs of refitting 178 beauty halls.
IT and Infrastructure costs include depreciation and lease costs from 14,000 new tills which have now been installed in all stores and from the SAP backbone programme which has delivered new finance, property and space planning modules.
The new stores programme costs include salaries, rents and depreciation for 47 new stores including 23 on the Edge of Town, 10 new Community Chemists and 7 new travel and convenience stores.
