Good morning, Ed.

Edward Kelly - Credit Suisse

I look at your gross margin this quarter and from a headline perspective, it doesn’t look very good because of the costs for rationalizing SKUs. But underneath of that, the trend of it is actually better than what it was last quarter. I mean, it’s down about 23 basis points on a FIFO basis. It was down 38 ex the noise last quarter. So as we think about the gross margin going into next year, clearly you start running up against some easier comparisons. What’s the probability that we are able to at least get this line kind of flattish as we look to next year?

Wade D. Miquelon

Well, I think everything you said is pretty astute. I mean, obviously we’re focused on improving this over time. I would just say I think right now, you are seeing a bit of a transition phase. We’ve got a lot of things going on. We’re kind of, I call it changing the tires while the car is moving but still, we’ve got traffic, even in this kind of tough economic year we’ve got traffic increasing, which is very good. Again, we’re making lots of changes to clear out the old stock, to refurbish stores. So I think obviously our goal is to increase this over time. We will be cycling an easier base period and I think that’s important to note as well. So, I don’t want to predict exactly what it will be but certainly we are working on improving this over time and I think right now we’re just in a bit of a kind of a transition and mostly I feel very good that we are still again swinging the doors and driving sales in a pretty tough economic environment as well.

Edward Kelly - Credit Suisse

Great and then Wade, on the inventory side, I know that you’ve publicly said that you’ve got a $500 million goal in terms of reducing inventory. It sounds to me like the body language is that maybe the potential is more. Is that fair?

Wade D. Miquelon

Well, we had originally said 500 associated with the SKU assortment work, kind of call it the CCR rewire combined. But I think as Greg alluded to, that’s really just one phase of what we are doing. It’s really I think the supply chain initiatives changing how we work, the broader systemic things that will provide additional benefit. We just haven’t put a number out there yet.

Gregory D. Wasson

Ed, I will say I’ve never seen Randy Lewis so excited.

Edward Kelly - Credit Suisse

And then a question for you, I’ve heard that you are thinking about adding liquor to the stores. Where do you stand right now in terms of assessing whether you are going to do that? How many stores do you sell it in today? How big could it be?

Gregory D. Wasson

We are looking at beer and wine, Ed, versus spirits. You know, we do have several markets now, the Southeast and the Southwest, where we still have full liquor. We’re looking at beer and wine. We think there’s an opportunity obviously to add that to our convenience goods. I don’t know really the total number of stores yet. We’re kind of in the early stages of it.

Edward Kelly - Credit Suisse

And the stores where you do sell beer and wine, what percentage of the front-end sales does it typically account for?

Gregory D. Wasson

It’s single, small single digits.

Edward Kelly - Credit Suisse