Once all those fundamental basis are in place then that private and exclusive brand penetration is always going to be a positive for us and it is just a question of how quickly consumers embrace the brand.
The most important thing whether it is private or national or exclusive is the merchandise. If the merchandise is great looking, they are going to buy more.
Lizabeth Dunn (Thomas Weisel Partners): Is there any way to break out with the 52 basis point gross margin improvement in the fourth quarter how much of that was due to your markdown rate versus IMU?
Kevin Mansell: The initial mark up versus markdown rate does not really matter.
We are saying the balance of positive lift due to better inventory management, mix of private and exclusive brands and the impact of technology improvements all played a role in the improvement of merchandise margin.
Lizabeth Dunn (Thomas Weisel Partners): So both were favorable?
R. Lawrence Montgomery: Yes.
Michael Exstein (Credit Suisse): Is the information on the consumer budget just intuitive or are you getting that directly from focus groups?
Kevin Mansell: We are getting that from both our own primary research throughout the third and then the fourth quarter and obviously the secondary research as well.
But, our own primary research is clearly saying that consumers do not expect a strong economy in the next six months to a year, that they intend to spend well within their budget. That is the most important thing they have in their mind, is that they have to stay within their budget and that overall they expect to spend a little less on clothing.
So all those things tell us that value is very important and we know through our research that Kohl''s clearly has the best sales and consumers recognize us for that and we think that because of that we have a huge market share opportunity.
Michael Exstein (Credit Suisse): Do they breakdown further their intention in terms of apparel sales?
Kevin Mansell: We would be getting in to a lot of more proprietary information. But, in general I do not think it is unfair to assume that she will cut back for herself probably before she will cut back for her children.
R. Lawrence Montgomery: That is evident in our lines of business performance this year. Kids and accessories and men''s have led and women''s has trailed the company.
Michael Exstein (Credit Suisse): What is going on in the cosmetics business?
Kevin Mansell: It is growing faster than the store. It outperformed the store pretty handily.
That was driven both by our traditional beauty business but also by a more increased emphasis on fragrance. We have reallocated our space allocation within the beauty department and inventory effectiveness has improved a lot in that area.
So, generally across the board while small, it was definitely a big success story.
Deborah Weinswig (Citigroup): You spoke about size optimization, why does it take so long to realize the benefits?
Kevin Mansell: It takes so long because every single supplier we deal with all the way back to the factories in Asia must have systems in place and process in place in order to accommodate multiple different pre-packs or shipping packs per our needs.
That takes a long time to convince them about the need for the investment, the need for the change in their processes and why ultimately and eventually it is going to be a big benefit for them because it will mean less markdowns at the end because our size weight or value across the size spectrum would be more appropriate by store.
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