Our Getting in Shape programme is now largely complete. It has delivered savings which in the year 2005/06 will amount to £111 million. This is behind the £132m estimated at the interims due to some head office head count reductions which have been delayed into next year until systems work is complete and some actions in BHI which have been cancelled in the light of the sale.
The size of head office has been reduced by 1,200. This reduction, together with better procurement has saved £55 million in Boots The Chemists Head Office.
Manufacturing efficiencies, including closing our Airdrie factory and transferring production, have generated £52 million cost of goods savings of which £35 million have benefited BTC and £17 million have helped fund expansion in BHI.
Savings of £4 million have been made in BHI’s operating costs.
Having delivered the Getting in Shape programme we will continue to identify further efficiencies.
