Alan this is Chip. Priority one for us is to build the cash position to $125 million, so we don''t dip into our revolver any longer. We go in and out of it regularly so we don''t see it as a problem, but given some of the financial crises that have gone on of late we just think it''s prudent for us to build our cash position to where we don''t have to dip into that, so that''s priority one. Priority two is to not change our dividend policy down so we don''t plan on reducing our dividend policy, and then from that point I''m not certain yet. We’re going to get our cash position where we want it probably Q2 of next year and then we''re going to start talking about a mix of share repurchases and dividends and what''s the appropriate amount and then there''ll be more news to come on that.

Alan Rifken – Merrill Lynch

Okay thanks Chip and one last question if I may, there''s been a lot of talk about Wal-Mart really going after this area going forward. What are you seeing out of them from the competitive standpoint?

Philip L. Francis

Well this is Phil, as you can image there''s no upside for me to say anything about Wal-Mart and talk about us. When Wal-Mart moves food to the center of the store I think they gain some traffic and I think they''ll sell some more food. Our median, the numbers dipped in ''06. Two people gained share, it was Wal-Mart and PetSmart and in ''07 there was two people who gained share, the same two. In ''08 the year''s over enough but we know there are two people who are going to gain share; it''s the same two. We’re confident that we''re going to gain share next year. As they apparently target and shoot at us they may gain share. Our job is to duck and let them hit somebody else. With the changes they''ve made we''re the ones now who have the theater of live pets. We''re the ones who have the theater of the sale of live pets and we''re the ones who have the credibility of people thinking they know and can give advice on live pets because we''re the ones who sell them.

So Wal-Mart targeting us is an honor I guess we could have passed upon but we''ve been working for ten years to differentiate ourselves and our answer is not to play their game but it''s to differentiate, take care of the customer and be the solution for pet parents. The evidence so far is that we''re doing well on that path.

Alan Rifken – Merrill Lynch

Okay very good, thank you and best of luck for the holiday season.

Operator

Our next question is from Gary Balter from Credit Suisse, your question please?

Gary Balter – Credit Suisse

Yes it is Gary Balter from Credit Suisse. First of all congratulations because you guys have what looks like the best numbers out there right now in retailing; hopefully your stock at one point reflects that. Questions for you, one is just as we look out to next year we haven''t seen any guidance from you. It sounds like past the first half of the year where you have the inflation benefit that actually second half there''s no reason to think that we''re not going to be into negative comps. What stops the comps from going negative in this environment?

Lawrence P. Molloy

Gary this is Chip. The first half of the year, let me put it this way, we do think we''ll have some comp benefits, from inflation for the first half of the year. Where it''s going to go in the second half of the year, I think what we''re planning for is part of the reason for our reduction in CapEx and part of the reason for additional management of expenses is to manage through a year that could have some negative comps as we flow into the latter part of next year. We''re going to continue to do selling efforts. We have initiatives in place all around selling. We''re going to continue to work to differentiate ourselves. We''re going to continue to leverage our database of customers. We are working very diligently with our vendors on co-marketing programs. So we think that at the end of the day we''ll continue to drive sales and we hope we''re not planning for big comps next year but at the same time we continue to work to try and drive that.

Gary Balter – Credit Suisse

Okay that leads into the second part of the question which is as we look at SG&A as I think Matt mentioned before you''ve done a great job on the expense lines. You deserve a lot of credit for that. As we think about where you are in that equation, obviously get the benefit of not opening as many stores next year which will help. What are the other big things that we should be thinking about?

Lawrence P. Molloy

Well, some of it we haven''t capitalized on the investments that we''ve made into our services network, I mean in our W&D network or distribution network. We''re going to start to see benefits. We''ll see some, what I believe is some very decent benefits from our supply chain network in Q4 and that''s going to flow in all through next year. It’s a much better network. It’s a healthier network. It''s less transportation costs. That''s going to be one area. We still have benefits associated with store labor. We still think that there are activities in the stores that can be simplified. We have a list of those that, we''ll not take out customer facing labor but we''ll take out tasks which will then therefore help us on the labor lines. Those are just two of the examples and there are still areas that we have, I don''t want to call it quite low hanging fruit anymore but there''s still areas for us to manage our expenses and get better and we''re only half way through this journey. So that along with a combination of a lower CapEx is going to benefit us and we should start seeing some higher benefits even in the latter part of next year.

Gary Balter – Credit Suisse

So what would be the comp number that we need to get expense leverage next year?