Superdrug Announces Ambitious Plans for Growth
Forty new stores in 2005 and forty per cent increase by 2009

United Kingdom (18 May 2005)

Superdrug, the UK's second largest health and beauty retailer owned by the AS Watson group, today (date) outlined a £75 million programme for growth in the UK making it the fastest growing health and beauty retailer in the UK.

The retailer has already embarked on an ambitious and aggressive refresh campaign of its existing store portfolio and the whole chain will have been re-branded by the end of this year. In addition it will open 40 new high street and out of town stores between now and the end of the year, creating 400 new jobs and increasing trading space by five per cent. The first of these new stores opened last week in Stornaway, in the Scottish Western Isles. The AS Watson group, which also owns the Savers chain in the UK, today confirmed that it could see the potential for over 1000 Superdrugs in this country by 2009 representing a 40 per cent growth in the number of stores over the next few years.

Euan Sutherland, Superdrug's chief operating officer, said: "The AS Watson Group sees the UK as a significant growth market and Superdrug is ideally placed to take advantage of these opportunities. Our customers tell us that they love our low prices and enjoy the whole Superdrug experience so these expansion plans mean that more people than ever will be able to shop their local, new look Superdrug."

Superdrug operates close to 700 stores, trading from over 2 million square foot of retail space. It currently has 225 in-store pharmacies.

These plans also include, an investment boost in rejuvenating the Superdrug brand in the UK. The store chain announced last week the appointment of Euro RSCG London as its UK advertising agency which has been charged with making the brand more appealing and relevant to customers through a new consumer advertising campaign due to start later this year.

The AS Watson Group operates over 6,200 retail stores running from health and beauty, luxury perfumeries and cosmetics to food, electronics, fine wine and airport retail arms.

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For further information please contact Zaria Pinchbeck on 07802 837975 or Jenny Hill on 07971 117265 or 0207 837 4317


Notes to editor's:
· The new stores include Stornaway, Paddington, Didcot, Ayr, Rothesay, High Holborn, Edinburgh, Rustington, Norwich, Kings Lynn, Glasgow, Charing Cross, Harringey, Manchester Fort Centre, Clacton-on-Sea, Harlesden, Bloomsbury, Glasgow Fort, High Wycombe and Enfield.

· Superdrug is the United Kingdom's second-largest Health & Beauty retail chain, attracting more than seven million customers to its stores during the Christmas season alone. The successful Superdrug formula is attributed to its commitment in maintaining an extensive range of its own well-recognised and high quality brands. Superdrug currently operates 700 stores in England, Scotland, Wales and Northern Ireland.

· Superdrug is one of the health & beauty retail brands from the A.S. Watson Group (ASW) family. With a history dating back to 1828, ASW has evolved into an international retail and manufacturing business with operations in 31 markets worldwide.