Question-and-Answer Session
Operator
(Operator Instructions) The first question comes from the line of Kate McShane – Citi Investment Research.
Kate McShane – Citi Investment Research
The sequential improvement in comp store sales especially in Europe was great. I wonder how much you think is from share gains and how much you think is from an improvement in the environment. Also, do you think trends from month to month are consistent enough for you to have confidence that comps are going to sequentially improve going forward?
Ron Sargent
Europe is kind of a little bit of a different animal than the U.S. but it is also similar. It seems like we are coming back about 6-8 months later and it seems like we are coming back about 6-8 months later. The biggest benefit that we had during the quarter was we had easier comparisons in the second quarter of this year versus last year. It is too early for me to say we will see continuing sequential improvements in comps in Europe because I think things are just too choppy and the environment is just too uncertain. I think it is similar to the United States in that we will feel it in retail first, then probably catalog second and contract third. I just think it is a little premature to know about the continuing improvement in the comp side in Europe.
Kate McShane – Citi Investment Research
If I can ask one more question about back-to-school in terms of promotions, are promotions more aggressive in your opinion for this back-to-school season compared to last year? If not, do you expect they will get more aggressive as we move into September?
Demos Parneros
I think back-to-school promotions have been fairly consistent with last year’s level of promotion. Everyone this time of year becomes a back-to-school retailer. There are probably 10-15 different places you can buy back-to-school products. We have been focused, as we said earlier, on whole value messaging and the Staples Equals Savings campaign has been great. I think customers have responded really well to that. As far as the rest of the market we expect similar levels of promotions and competitiveness for the rest of the way. Overall I would say fairly similar to a year ago.
Operator
The next question comes from the line of Brian Nagel – Oppenheimer.
Brian Nagel – Oppenheimer
My first question is with respect to sales. More in the U.S. You did see an indication of sequential improvement in retail comps and while your comparative shows some deceleration, so maybe you could talk about what we actually saw through the quarter so we can get a better idea of where the trends may be heading here?
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