RETAILER Boots is scouring the North-East for sites for out-of-town superstores that will create hundreds of jobs.

Nationwide, the company is to create 3,000 jobs over the next year as part of a £390m expansion.

The health and beauty chain said it would be opening 60 stores during 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.

A spokesman for the company said: "No firm sites have been identified for our new stores, but we can confirm the North-East figures in our plans.

"We are looking at a number of locations and an announcement is expected shortly."

The stores will carry a similar range of products to current Boots in-town sites.

Management announced the overhaul was unveiled at the same time as a four per cent increase in fourth-quarter like-for-like sales, beating analysts' expectations of 3.5 per cent.

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 jobs created will be subject to planning approval being granted for new stores, they are expected to be brought in during the next 12 months.

Mr Baker said Boots Basics was a departure for the company. Although the firm is not aiming for the lowest prices, it hopes the quality of its products will attract customers.

Mr Baker said that, as a result of the changes, the company's pre-tax profits would be hit in 2004/2005, although this would give a strong platform for growth the following year.

Profits for the current year were expected to be in line with market expectations of about £560m.