Matt Carey, our IT leader, is here in the room and so I -- Matt, if you want to add some comments to that.
Matt Carey
Frank absolutely. We intend on measuring the impact and the return that we’ve gotten or are going to get in this system and we’ll assess it throughout the year and go through a few seasonal cycles and make sure that it meets our expectations before we make a call.
Francis Blake
Thanks.
Diane Dayhoff
Augusta, I think we’re ready for the next question.
Operator
Thank you. That will come from Wayne Hood with BMO Capital.
Wayne Hood - BMO Capital Markets
Good morning. I guess on Canada again. Carol specifically to you, I guess as you look at their implementation there, there was some inventory adjustments and as you look at that, what do you see there that might mean or imply inventory adjustments that might be needed in the U.S. if you rolled out SAP and how much is their inventory down up there since that rollout -- about 5% or 10% or can you put some parameters around that?
Carol B. Tome
Well Wayne, we haven’t done the analysis in the United States to be able to quantify what it could mean but anytime you convert, and I think you know we converted from retail method of inventory to cost and there was an inventory adjustment that took place, so that impacted the gross margin performance in the fourth quarter. We also had some shrinkage and that was really because of the disruption associated with the implementation. So I can tell you what it meant to Canada, which we called out in this overall impact to the company gross margin up in Canada -- it was about 23 basis points. The inventory piece related to the score or SAP implementation was about 12 basis points. So I can’t tell you what it means for the U.S.
Wayne Hood - BMO Capital Markets
Okay, and then I just had a quick question for Craig. Craig, you indicated some increase in units you are employing in some of these other areas. I am just wondering when you think about fully allocating expenses back to these labor intensive departments, what level of profitability are you seeing year over year, even though your share may be up?
Craig Menear
When we look at our flooring business, for example, soft flooring has been a very strong business for us, where we’ve been gaining share and when we look at the overall profitability of that product category, we’re actually very pleased with our results.
Wayne Hood - BMO Capital Markets
So it’s up year over year, fully allocated?
Craig Menear |