During the year, we opened 35 new stores in the UK with a total sales area of 830,000 sq ft. In the same period, three stores were closed. In 1995/96 we expect to open 24 new stores with a combined sales area of 666,500 sq ft (see Chart 4). A greater proportion of our new openings will be compact stores (less than 26,500 sq ft) and Metro stores than has been the case in recent years. Additionally, we will extend our Express trial by opening a further ten sites.

Capital expenditure for the year was £771m (1994 - £779m). The figure is planned to fall to £600-650m in 1995/96 as a result of tighter planning regulations and the reduced availability of sites. £86m has been spent on refitting stores in a programme that covered both high street supermarkets and superstores and included five conversions to the Metro format. The refit programme is expected to continue at the same rate for the foreseeable future, enabling us to extend and introduce new product ranges.

A new national wines and spirits bonded warehouse was opened in Northampton in June 1994 to replace two older, less efficient sites. In October 1994, we opened our largest distribution centre to date in Magor, South Wales, and are planning to open a new composite warehouse in Southampton in September 1995. This will use advanced automated systems for goods handling to give greater efficiency and improved service to our stores.