Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Marni Shapiro - The Retail Tracker.
Marni Shapiro - The Retail Tracker
Two quick questions, the first is housekeeping. You guys have done a lot of work on shrink over the years than you have initiated a couple of years back. I was curious as the economy gets tougher, have you increased your reserves for ?09?
Then the other is for Michael. I know there is so much inventory out there; we all know that there’s a ton of inventory out there. I was curious if you could just talk about the quality of inventory and if you’re seeing the quality of brand improve for you guys, still even at the end of the year and heading into ?09 and if you feel good about those relationships heading into ?09, as it seems some of the inventory commitments have started to comedown a little bit?
John Call
I will take the first one on the shrink reserve. This is John. Our practice is to reserve based on our most recent historical results and we recognize that in these tough economic times, there could be some upward movement in shrink; we’ve tried to provide for that. We are also investing pretty heavily in shrink control on measures. So, hopefully we’ll have a good result this is year.
Marni Shapiro - The Retail Tracker
Great, thanks.
Michael Balmuth
It is Michael. On merchandise availability and the quality of brands and relationships, our merchandise availability has been strong and continues to be, and this is at all levels, both in moderate and the upper end of the business and the quality of the assortments that are available, as well as the brand has really never been better. I think the relationships have gotten stronger through these tougher times for ourselves, with the marketplace and I think it puts us in good stead going forward.
Operator
Your next question comes from Kimberly Greenberger - Citigroup.
Kimberly Greenberger - Citigroup
John, I was hoping you could help us with the comp metrics in the quartered number of transactions versus the average signet. Then Michael if you could talk about your inventory plans for the year; on going double-digit declines, can you help us understand how you’re able to execute this and does it involve a change in your packaway strategy? Thanks.
John Call
Kimberly, this is John. On the comp metrics, actually our total basket is down a couple of points; the transactions are up one, which resulted in the downward comp. So we’re seeing customers spend a little less, but the traffic launch transactions have been pretty healthy.
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