Question-and-Answer Session
We will go first to John Heinbockel, Goldman Sachs.
John Heinbockel - Goldman Sachs
Hey, guys. A couple of quick things. With regard to the comp progress, which was fairly impressive, was that uniform or did you see a pickup toward the end of the quarter? And it sounds like that was more driven by unit movement than inflation, or was inflation some part of that?
Eric Claus
Inflation was some part of it, but the highest was certainly unit movement and that had to do with our promotional strategy and our pricing strategy. And it actually picked up towards the latter part of the quarter. It was a strong quarter from beginning to finish, but it is like a race, like a marathon, you do 32 miles of running in a 10-kilometer race. We hit it in the last stretch where they took us over the top.
John Heinbockel - Goldman Sachs
So, you would have had to end of the quarter better than the 3, 2, is that continued into the current quarter?
Eric Claus
I will not say what level it is continued, the current quarter is good, it is positive, but I will not comment if it is at the same level or higher.
John Heinbockel - Goldman Sachs
Now, what have you seen competitively here now in the last month since Labor Day hit? Have we seen it step up to yet another level or no?
Eric Claus
It is very hot. It continues to be hot. Our strategy has really been focused on our game, like I said. So, we have tried to do things differently, and we have started about two years ago to focus on our programs. And at the end of the day, remember, we are starting from a much lower base. Our competition has a higher sales per square foot than we do. And obviously, I am sure the people think that while we are off our game doing this Pathmark planning and integration that it is a good time to get us off our game and that gives us even more drive to be on our game.
But we just continue, we are really trying not to focus on specific competitors, specific mediums. We focus on being very innovative in our program, being very creative in our merchandising strategies, the way we merchandise our fliers, the way we have worked on our private label that we can really afford and not to critique the past, but in the past where there have been many attempts at a more aggressive pricing strategy, they brought down the margins to levels that were not sustainable in terms of the business.
John Heinbockel - Goldman Sachs
Eric Claus
John Heinbockel - Goldman Sachs
Eric Claus
John Heinbockel - Goldman Sachs
Operator
Eric Claus
Karen Howland - Lehman Brothers
Eric Claus
Karen Howland - Lehman Brothers
Eric Claus
Karen Howland - Lehman Brothers
Brenda Galgano
Karen Howland - Lehman Brothers
Eric Claus
Karen Howland - Lehman Brothers
Eric Claus
Operator
Perry Caicco - CIBC World Markets
Eric Claus
Perry Caicco - CIBC World Markets
Eric Claus
Perry Caicco - CIBC World Markets
Operator
Brenda Galgano
Christian Haub
Christian Haub
Brenda Galgano
Eric Claus
Brenda Galgano
Eric Claus
Karen Short - Friedman Billings, Ramsey & Co.
Eric Claus
Eric Claus
Christian Haub
Brenda Galgano
Christian Haub
Christian Haub
Christian Haub
Christian Haub
Eric Claus
Karen Short - Friedman Billings, Ramsey & Co.
Operator
Carla Casella - J.P. Morgan
Brenda Galgano
Carla Casella - J.P. Morgan
Eric Claus
Carla Casella - J.P. Morgan
Eric Claus
Carla Casella - J.P. Morgan
Brenda Galgano
Eric Claus
Carla Casella - J.P. Morgan
Operator
Westcott Rochette - Bear Stearns
Brenda Galgano
Westcott Rochette - Bear Stearns
Brenda Galgano
Westcott Rochette - Bear Stearns
Brenda Galgano
Westcott Rochette - Bear Stearns
Brenda Galgano
Eric Claus
Westcott Rochette - Bear Stearns
Christian Haub
Westcott Rochette - Bear Stearns
Brenda Galgano
Westcott Rochette - Bear Stearns
Brenda Galgano
Westcott Rochette - Bear Stearns
Brenda Galgano
Westcott Rochette - Bear Stearns
Christian Haub
Operator
Phil Fisher - Analyst
Brenda Galgano
Phil Fisher - Analyst
Brenda Galgano
Phil Fisher - Analyst
Eric Claus
Brenda Galgano
Eric Claus
Phil Fisher - Analyst
Operator
Alexandra Jennings - Green Light Capital
Bill Moss
Alexandra Jennings - Green Light Capital
Operator
Bill Moss
Eric Claus
Operator
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