International IT group Xansa today said it had done a deal worth more than £11 million to help retailer Boots to upgrade its IT systems.

Hertfordshire-based Xansa said Boots had extended an existing contract with the group to help it overhaul its till, stockkeeping and pay systems.

The deal is part of a massive overhaul of Boots IT infrastructure designed to help the retailer to cut costs by 30% over seven years.

Boots began working with Xansa on the project in 2001 and extended it in 2002.

It is part of efforts by Nottingham-based Boots to build on recent success in improving the fortunes of its core high street business.

In January, Boots said it had beaten market expectations with a 4.1% rise in like-for-like sales over the Christmas season.

The health and beauty chain said it had learned lessons from last year by increasing its range of beauty products and fragrances while offering more promotions on "big ticket" items.

In March, the group said it planned to create 3,000 new jobs over the next year as part of a £390 million expansion drive.

The programme included the launch of 60 new stores and a range of lower priced no-frills products.

Boots chief executive, Richard Baker, said the core Boots The Chemists chain needed the overhaul to bring it up to date with rival retailers.

The statement issued today said the deal with Xansa would "ensure that Boots customers have their favourite products and new offers available in the right place and the right time."

Xansa, based in Hemel Hempstead, said it was "very pleased" to continue building its relationship with the high street retailer.

The company has recently won contracts with the Office for National Statistics, Barclaycard and tour operator MyTravel.

It provides business and technology consultancy, IT implementation services, IT outsourcing and business process outsourcing.

Xansa chief executive Alistair Cox said: "The cost savings delivered by Xansa will allow Boots to focus on its strategic change programme."

Friday May 14, 2004