operations process simplification New systems completed to date: Point of sale  Customer call centre and management system  Clothing replenishment  Food replenishment - 50% complete  Clothing stock ownership  Foods distribution systems  Supplier portal  Credit management  Human resource system and labour scheduling  Outsourced all core infrastructure and support 

operations process simplification Systems underway: Foods planning – 50% rolled out Roll-out complete Feb 06 In line with expectations Retek merchandise management system Includes store back office Final testing phases Roll-out to commence Apr 06 Clothing buying systems Womenswear complete Roll-out complete by Jun 07 Total 5 year investment : R500m (currently in year 3)

operations supply chain logistics Distribution costs per unit reduced Labour productivity Accuracy and controls Capacity growth in all regions, including Gauteng campus Development started Phased relocation early 07 R450m 3 year all DC’s investment programme