Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Robin Murchison - Suntrust Robinson Humphrey.
Robin Murchison - Suntrust Robinson Humphrey
I wanted to ask you about the tone of the environment and the consumer vis-à-vis the holiday period. Is it your sense that the environment is maybe not as combative if only because the retailers have had more time to adjust inventory levels and initiate a more defensive plan? And then also what is your sense of the appetite on the consumers' part in early spring?
David H. Stovall, Jr.
I think we know that her behavior has changed, that she's going about things differently. She still wants to shop, but we know that she's shopping in her closet. She's buying single pieces rather than entire outfits and accessorizing where she can. She's being very selective. She knows that everybody's competing for her business and she expects incentives to get her to come in.
We are reacting to that through our marketing campaign, both with outreach to new customers as well as trying to develop our better customers and increasing our share of their wallets. In terms of how other retailers are reacting, it still feels like a very aggressive environment out there to me even though, as we know, inventories are probably less of a challenge to most folks. But it does appear to still be a highly competitive environment trying to get market share out of what may be a smaller wallet.
Robin Murchison - Suntrust Robinson Humphrey
David or Jim, also, let me ask you, the programs that you outlined, the new elite preferred customer program, the TV, the direct mail and the e-mail, and then the interactive program, how should we be thinking about marketing and customer outreach program expenses in the new year vis-à-vis last year?
Glori Katz
While our dollars are slightly less for 2009 as a percent of sales, they're up slightly at approximately 3.8% of sales. We have made a change in the focus of our media mix in order to add TV, but with other things this is the right thing to do to reach this new customer.
Robin Murchison - Suntrust Robinson Humphrey
And also if I could just kind of get a little insight, it's very clear in the stores, particularly in boutiques, the shift to the sizeable addition, if you will, of a younger attitude - a bit more trendy, a bit less suited, quote-unquote looking. Can you give us any insight as to how that is working for you?
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