Our second driver recognises the need to differentiate our product offer.
When we talk about "only at Boots" it is our own brands that come to the fore. Boots has a level of expertise in product development which none of our rivals can replicate. Boots brand products are a vital part of our future.
And here beauty is key. Nothing tells the story better than No 7, the UK's best selling cosmetic brand.
It is a great brand, but hadn't had a revamp for a decade. So we renewed all the lines - with most products getting new ingredients to make them better - and developed some new ones as well. We redesigned all the packaging, the in-store displays and the service levels around the product and relaunched the brand with a new advertising campaign - and it has grown by 20 per cent since its re-launch.a fantastic result.
In beauty, Boots is investing in getting more and more prestige brands in stores - the type of brands that used to only be available at department stores. We have been able to win this type of business from manufacturers because of our continued investment in new beauty halls with expert people. And there are more beauty halls planned over the next year.
Clinique is a good example. Ten years ago, Boots sold very few Clinique products. Today we are their number one UK customer.
Further new beauty product launches are in the pipeline, with our 17 teen cosmetics products relaunching at the end of the summer.
But beauty is not the only focus. In toiletries, own-brand products such as Soltan are essential in taking the fight to our rivals. Later this year we will relaunch our Smile toothpaste brand.
But while own-label is important it is not the only story. A big part of "only at Boots" is the breadth of our range - so big brands will always play a part.
Increasingly, our focus here will be new product launches because of the growth they offer.
Boots is getting better at using its relationship with suppliers to drive new products so we can stay ahead of the competition. This boosts sales for that short period - but also means that we tend to maintain higher market shares, even when the products have begun to be sold more widely. This area is key because 20 per cent of the sales in beauty and toiletries come from products that are less than a year old.
LINK: The third of our drivers is value.
