High street giant Boots is to create 3,000 new jobs over the next year as it embarks on a £390 million expansion drive, it announced today.

The health and beauty chain said it would be opening 60 new stores over the next year, including about 40 out-of-town sites and 20 convenience stores.

Boots also revealed it was launching a no-frills Boots Basics range of lower-priced products to compete with other similar ranges, as well as extending opening hours.

The overhaul was unveiled as the firm announced a 4% increase in fourth-quarter like-for-like sales, beating analysts' expectations of 3.5%. Chief executive Richard Baker said the core Boots The Chemists chain needed the overhaul to bring it up to date with rival retailers.

He said the company needed to build its presence in out-of-town locations and extend opening hours in order to adapt to the changing shopping habits of consumers.

Although the new jobs would be subject to planning approval being granted for new stores, they were expected to be brought in over the next year.

The new Boots Basics range will include 32 products introduced in two phases, with the first coming in over the next month and the rest at the end of the summer.

Mr Baker said this was a section of the market Boots had not previously entered into. Although the firm was not aiming for the lowest prices, it hoped that the quality of its products would attract customers.