Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Ryan Balgopal – Scotia Capital.
Ryan Balgopal – Scotia Capital
I was wondering if you could just talk about your new store program. I would have thought that your total retail sales growth would have been higher relative to same store sales growth given the 4% increase in square footage. I wonder if you could just comment on how those stores are going in the market.
François Coutu
They are going well. Mind you that most of the relocations and new stores will be in the coming months as we are an extremely busy fall and they’ll start contributing a few months after they’ve actually been open. The real effects of these relos and renos will certainly take place at the end of this year. That’s what I am looking forward to obviously, sales growth in the later part of this year.
Ryan Balgopal – Scotia Capital
The 4% increase in square footage versus less than a 1% difference between total sales and same store sales suggest that the stores that you have put in the last 12 months are struggling to grow. Did you find any to step up your pace of acquisitions or is that why you need to be more promotional.
François Coutu
No, I think these stores are doing very well. It happened that at times either a competitor or a mass merchandiser came along and obviously reduced the progression of extraordinary progression of these stores but overall we are very satisfied with what they contribute and I believe that it’s a decision that we made, extremely important decision because if we hadn’t done that I think the ones that are the older stores, the ones that not been renovated would probably struggle a lot more. That’s why I’m saying the program is accelerating and with good results, believe me.
Ryan Balgopal – Scotia Capital
On the SG&A you indicated that advertising spending was up substantially and you expect it to be flat on an annual basis. Can you quantify how much it was up in the quarter from last year.
André Belzile
Last year we decided not to make TV advertising for the comparable period. This year actually we did so. This alone is about $1 million and again it’s only a question of timing of the expense. On an annual basis it should be comparable by year end.
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