Question-and-Answer Session
Operator
Thank you. (Operator instructions) And we will take our first caller Mr. Andrew Wolf of BB&T Capital.
Andrew Wolf – BB&T Capital
Ask you a few questions on the sales. You know on – I guess Greg, do you see a permanent shift towards staples from discretionary in Walgreen stores, you know, requiring fairly fundamental change in either in your mix, your merchandising, your pricing, and you know is just signaled by your hiring, you know, a new merchandiser from outside, not just outside Walgreens but from the discount store industry.
Greg Wasson
I don't see, you know, a permanent shift, Andy. I do think that the right balance between making sure we have good value items such as the Affordable Essentials that are stacked up in stores with prominence in our ads and our stores to swing doors is critical. You know, obviously the right balance to make sure we offset, you know, any margin pressure that we’d see from value pricing is got to be adjusted in the mix, and how we promote, and I think one of the things you will see us do is really aggressively promote our private brand to help offset that, but I do think you know, in going to Bryan Pugh that we now moved into merchandising area. I think Bryan is going to bring a lot of great experience. We are really, really looking to get to understand our customer, and know our customer more, we can file. And I think you’ll see a lot more target merchandising toward our customers.
Wade Miquelon
And I would just pile on there and say you know, I think part of this is also recognizing that we do have the best retail corners in America, and making sure that we have the right staple offerings there is just simply the right thing to do.
Andrew Wolf – BB&T Capital
In terms of driving traffic or just because, I guess back to the original point of the question, just because that is at least now and maybe into the future what a drugstore can expect to – its consumers to take away.
Greg Wasson
I think you know, as I said Andy I’m telling you, I hope I am getting to your question, I think you will see us, you know, continuing to make sure that we are swinging doors as I said. I mean we're going to have, going to have good value items on the front page of our rotas. We have good value items stacked up in stores, but at the same time you know, I think the merchandise selection, the promotional activity you will be seeing help will help offset that margin, and I think there is tremendous upside getting on private label.
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