Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Betty Chen - Wedbush Morgan.
Betty Chen - Wedbush Morgan
Sue, I was wondering if we could speak a little bit about the cost savings. I think you’ve mentioned that we are on track to see about $10 million of SG&A dollar decrease year-over-year. I think the plan was for about $20 million in total of cost savings. Could you walk us through maybe the timing of that and whether we could potentially see more than the $10 million that you alluded to earlier?
Sue Riley
I did say at least $10 million more in savings. So we’d just like to provide some cushion in that number of course, but the goal of the cost reduction program that we announced earlier this year was for $20 million and we remain ahead of schedule to achieve that $20 million.
The $10 million in SG&A savings that we expect to achieve this year that includes new store openings and so bear in mind, we’ve got new store openings, which drive SG&A somewhat, but all things being equal, we are on track to achieve the $20 million and then some of restructuring program savings.
Betty Chen - Wedbush Morgan
Any color you can give us on how we should think about that, because I think we were already starting to see some of the savings in Q2. How much should we think about for the Q3 and Q4 timeframe?
Sue Riley
We had said that we expect it to annualize the $20 million of savings in Q3 and Q4. So expect about $5 million in each Q3 and Q4 of those savings kicking in.
Betty Chen - Wedbush Morgan
Then just in terms of the inventory position, just wanted to clarify, I think you said that the carryover inventory is actually down year-over-year and then also the plus 13% per square foot actually includes in transit?
Sue Riley
That’s correct.
Betty Chen - Wedbush Morgan
Could you give us a sense of how much is in transit inventory and I know you also said that some of it is to help you position for August and September? Should we think that the in transit is primarily for the September floor set?
Sue Riley
The in transit inventory is primarily, most of the in transit that inventory, that actual inventory number is for holiday, is a little bit of fall that’s in transit. However, last year we had fall in transit, so we had more fall that within transit as we were buying to replenish, we delayed some shipments until they were just needed to replenish into the August floor set.
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