Good afternoon Sally and Mike. Related to Liz’s question, I was wondering if you can speak to a little bit about your thoughts on merchandise buys for 2009. I would imagine some of the purchases for Q1 have already been completed. Could you give us a sense of where we are in terms of buys for the first half and how should we think about the planning even for the second half of ’09? Thanks.

Sally Frame Kasaks

Well, we’re not talking about any sales or plan numbers of next year, just be assured that based on our internal plans, we are adjusting our on order and our inventory levels to support a more conservative sales plan.

Betty Chen - Wedbush Morgan Securities

Are you seeing more cooperation from the vendors or on the private-label side, the cost pressure easing from what we were hearing?

Sally Frame Kasaks

Well, we did not see a lot of cost pressure going in, as we had said that multiple times, though we were beginning to see perhaps towards fall. So this, we’ve said this publicly a number of times. I think right now, our people are over it right now -- what we are seeing is no pressure on prices going up. We’re not seeing a lot of prices going down at this point but nothing is really going up and our key suppliers are working very closely with us to adapt our production needs going forward into spring and summer and then also we’ll start looking at fall in another month or so, so we’ll have a better idea by then. But so far we see no price pressure, some drops but not a lot. I mean, basically the price is the price for spring, with some negotiation going on.
Betty Chen - Wedbush Morgan Securities

Okay. And then a follow-up to the refreshes and thinking about controlling CapEx for next year, have we been able to kind of re-engineer the cost of refreshment and maybe even the timing of them to further reduce the capital investments?

Sally Frame Kasaks

Well, there are two parts to your question. As we stated early, we have deferred a significant number, a very large number of our refreshes, as Mike mentioned, working with our landlord partners there. They understand the situation, so we have deferred a significant number, which is part of the capital conservation. On the other hand, we are looking towards ways that we can still create a good brand expression in the store and reducing the cost and all of that is in work.

Betty Chen - Wedbush Morgan Securities

Thank you and best of luck for the holiday.

Sally Frame Kasaks

Thank you very much.

Operator

Your next question comes from Jeff Van Sinderen of B. Riley.

Jeffrey Van Sinderen - B. Riley & Co.

You guys talked a little bit about payroll and I’m just wondering if you can give us a sense of what else specifically you might target to cut operating expenses. I’m just trying to get a sense of where other cuts might be feasible.

Michael L. Henry

Well, the other thing that I would mention that’s been very significant is we have run all year, we’ve run our home office down 15% in headcount relative to what our original budget plan was. Our executive committee has looked at the open headcount list every week and said no, no, no, yes, no, no, no, yes as we go through the list, being very, very targeted about what we allow to get funded and hired and what we don’t. So home office payroll has been very diligently watched, store payroll has been very diligently watched. We’ve been very careful about travel and training costs and relocations and recruitment and everything on down the line. There isn''t a single line we haven’t looked at and been scrutinizing very carefully.