Preliminary Results 2004/05

Notes

Competition in some of our markets is intense and we have to offer good value to our customers if we are to compete successfully. Pricing is and will continue to be an extremely important element of the value offer. We will continue to invest in our lower prices programme and will mitigate the cost of this through sourcing gains and own brand mix.

Pricing isn't however the only element. Our programme of strong, simple offers significantly enhances the value our customers receive at Boots. Promotions are important to our customers and will remain an important part of our offer.

The third element of value at Boots is the Advantage Card. We have had further great success this year with the card - but we know there is more to go for.

The importance of the card is clear. It is the most generous loyalty scheme on the high street with 4 points given for every £1 spent. And it really creates loyalty. Our cardholders visit stores more than other customers and they spend more. We already have 14m active cardholders - having added 1m over the last year - but that still leaves a lot of our regular customers without one.

Over the past year we have started to use the information we get from the card for more targeted marketing, with great results. We have held special shopping evenings for cardholders. For example, our Cardiff and Newcastle stores took over £100,000 in extra sales on one pre-Christmas evening.

We will constantly encourage our people to sign up more and more shoppers. And we will look for new ways to develop the card.

One of these, later this year, will be the launch of the Boots Parenting Club. Developed by the Advantage Card team, the Club will offer help and advice for expecting mums and those with young children as well as special shopping offers. For Boots, the club provides an excellent platform to boost baby sales by building direct relationships with parents at this life-changing time.

LINK: Now to our stores