Reflecting on the past year's achievements, the Group has successfully completed the warehouse consolidation pilot project in Botshabelo, Free State. Key to this initiative was the capability to service the warehousing and distribution requirements of all seven Traditional Retail chains whilst inventory was stored in multiple bin locations within a centralised warehouse.

In addition to this, the Group embarked on an additional consolidation site in Phuthaditjhaba, Free State. This was done to retest our baseline findings of the original analysis and improve on the lessons learnt from the Botshabelo pilot site. The project in Phuthaditjhaba started in September 2009 with full functionality of the facility commencing on 1 October 2009.

Based on the successes of these two initiatives, it is the Group's stated intention to escalate the consolidation of further warehouses throughout South Africa and thereby optimise the Group's logistics capacity and capability.

Fleet also experienced a redesign of its strategic framework to address key issues within the department. Essential to this strategy was an in depth analysis, which highlighted the necessity to replace essential fleet management software capability and the outdated vehicle tracking systems. The Group has procured key items of technology in this area, which are currently being installed and will be operational within the next financial year.

The main strategic business goals for Fleet in the ensuing year will be to ensure that the new technology delivers substantial benefits and to have even tighter management control of vehicle utilisation and expenditure. These initiatives will unlock opportunities to further enhance the Group's competitive status within the industry.