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With the rapid pace of growth and the development of different formats and channels, we have invested in the period in new, more flexible management structures in all our branches. Following a pilot last year, this significant move was implemented smoothly and is already bringing the benefit of greater efficiency and increased opportunities for managers and Partners.

Waitrose welcomed 2,400 Partners into new jobs.

Gearing for growth led to the purchase of a new 300,000 sq ft warehouse in Milton Keynes in March 2011. We have also announced our intention to open a new distribution centre in Chorley to support our expansion in the north of England and Scotland.

We continued to invest in value, quality and innovation. Essential Waitrose is now a £1bn per annum brand, giving customers value through entry-level prices with no compromise on quality or standards. The Brand Price Match promise, launched in November 2010, has over a thousand branded lines price-matched to Tesco. Over one thousand promotions in our branches every week have increased our promotional participation to 27%, up 3.3 percentage points on the same time last year.

Quality and innovation are at the heart of the brand. Our two brand ambassadors, Delia Smith and Heston Blumenthal, bring the Waitrose passion for good food and cooking to life in advertisements, publications and online.

We have built a best-in-class food development team and invested in new products, introducing 3,500 new lines this year. Two important launches took place in the first six months of this year: Good to Go, a range of 150 food products to be eaten on the move, and LOVE Life, a range of 270 delicious and nutritionally balanced products. The Menu From Waitrose; Seriously From Waitrose; Duchy From Waitrose and Heston From Waitrose brands form a market-beating unmatchable top tier.

The drive to bring Waitrose to more people in more places continued through strategic partnerships. Four more Waitrose outlets have opened at Welcome Break service stations, taking the total to 16 since May 2009. In the continuing trial, Waitrose food is sold in 34 Boots stores. We have also announced a new two-location pilot with Shell, starting this month in Watford and Kensington Gardens.

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