I think as we’ve talked about the first 12 weeks of the third quarter we were running closer to a 7% comp, obviously the last week had an impact on the overall quarter. There was probably I’d say a similar but probably less of an impact in June because you’re dealing with a larger dollar basis than you are in May and of course as we start to really cycle some of the stimulus checks, that creates some additional noise.

Charles Grom – JPMorgan

Okay. Well, that’s fair enough and thanks for that color. And just moving down the P&L a little bit, on the gross profit up 160 basis points in the third quarter, up 100 basis points in the second quarter, if I recall you’ve called out now the same three factors, shrink, freight, IMU in both periods. I’m just wondering which of those three helped you out a little bit more in the third quarter and I guess just Ken, why would that slow in the fourth quarter given that my understanding is that the IMU benefit should probably continue. So if you could maybe just flush it out for us, that would be great.

[Kenneth T. Smith

I think you’re spot on, I think the three call outs are similar in the third quarter to the second quarter. We have seen some nice benefit in both in freight and shrinkage and have continued to manage IMU well so those three all continue to be contributing factors.

And we expect as I mentioned that those trends will continue into the fourth quarter. I would suggest that one of the very difficult things to project out into the future is the energy side of things so freight becomes challenging for us to predict out into the future so we are anticipating and guiding that those could moderate somewhat.

And the other factor is the mix. We do expect some mix change in the fourth quarter that will wane on the gross margin a bit.

R. James Kelly

That mix is primarily a reflection of the stimulus plan last year which stimulated some discretionary spends whereas we won’t have that level of stimulus this year.

Charles Grom – JPMorgan

Okay and then one last one. If you could just give us the ticket traffic breakdown on that 6 comp in the third quarter. Thanks.

Kiley F. Rawlins

We’ve seen in the last several quarters both increases in ticket and traffic contributing to the comp. As we’ve seen in the last couple of quarters, traffic has been a bigger piece of that so roughly traffic is probably two thirds or so of the increase in the third quarter.

Charles Grom – JPMorgan

Okay, thanks. Good job.

Operator

I think our next question comes from Neil Currie with UBS.

Neil Currie – UBS

Thanks, good morning. Congratulations on a great quarter and thanks for taking my question. I just wanted to ask about some of your comments on getting more business from middle-income groups, just two questions around that. First of all, who do you think you’re getting your business from, is it a balance of different retailers or is there any one particular format you think you’re being successful at attracting customers from. And secondly, given the fact that you are getting more middle-income customers and it sounds like you think this is going to be sticky, does this change your view on store growth and neighborhoods that you think might now be available to you whereas previously they were out of bounds.

Howard R. Levine