clothing and home turnover & growth Sales growth of 11.6% (2004: 12.0%) Corporate store comparable growth of 8.3% (2004: 9.0%) Deflation averaged -1.1% for the year (2004: 6.9% inflation)

clothing and home turnover & growth Product deflation with volume growth

rlc market share Market share to June 2005 –12 month moving average this year 15.6% last year 16.3% (June 2004) –3 month moving average this year 16.4% last year 16.2% (June 2004) clothing *Prior year figures include an additional trading week for some of the competitors

Value = innovation, quality and price Strategic sourcing unit to drive value and differentiation Technological innovation Supplier base rationalised Appropriate imports implementation clothing and home

Womenswear Classic customer Wardrobe building blocks Number of styles Menswear Classic garments Childrenswear Open price points down between -10% to -20% Toddler Rationalisation and sourcing Home Authoritative range building implementation clothing and home Core Key Fashion Focus on the core customer – design-led buying 20% 80%

Availability in core 50% of turnover on replenishment Increase annuity opportunity sustainable annuity growth clothing and home