kathmandu annual report 2012 7 the country that still provides our most significant growth  opportunity in the short and medium term. We will  continue to grow our customer database and enhance  the relationship we have with those customers. our  customers are a key asset to Kathmandu in the world of  multichannel retailing.  the focus on building our brand positioning and customer  relationships is linked to the requirement for our store  network strategy to adjust to the significant changes that  are occurring in retail property as we decide on our best  options for new and replacement stores. the key drivers  of change are the weaker economic environment and the  accelerated growth in online sales. the choices made  today on store footprint, location and layout have never  been more important. ten permanent new stores were opened in FY2012,  and total store numbers increased by 13 stores year-on- year. this number was less than we had targeted, but it  reflects our caution on site choices as we assessed the  environment and our options in store formats in a number  of local markets. permanent store numbers totalled 120 as  at 31 July: australia 72, new Zealand 42 and uK 6. Stores  currently open total 124. the permanent new stores opened during the year were: australia:  Warnambool, Chatswood*, tamworth, Shellharbour, the rocks (Sydney) and Moorabbin DFo  (Melbourne). new Zealand:  Coastlands (Wellington), the palms  (Christchurch), Willis St* (Wellington) and Masterton. *Both these stores are relocations, and the previous store  has been converted to an outlet site that will likely become  a permanent store. the relocation of newmarket and Camberwell stores to  new enlarged sites meant the old sites for these stores  are being traded temporarily as outlet stores until lease  expiry in 2013. our other temporary stores are the central  Christchurch store in the post-earthquake re-start retail  precinct and Moonee ponds (Melbourne).  as a result of the combination of the timing of our  permanent new store openings in FY2012 and the lesser  number opened (10 versus 14 in FY2011) there was a  reduction in the earnings (at an eBItDa level) from new  stores in FY2012 compared to FY2011.  In FY2013, we have a substantial number of our annual  target of 15 new stores already locked in. ten new store  lease agreements have been negotiated and we expect  store network