Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Michelle Clark of Morgan Stanley.
Michelle Clark - Morgan Stanley
A question for you -- the percent of stores that is localized today versus what the goal is over the next 12 months? And then I have a follow-up question.
Karen M. Hoguet
Well, there’s 69 districts in total. In May of ’08, we converted 20 of the 69 and in May of ’09, we converted the remaining 49. So at this point, the My Macy's structure is throughout the company but it will take a little bit of time before the localized assortments are fully in the stores. So we had said that we expected that to happen in spring of ’10 but like last year, we are hoping to get some early benefits in the fourth quarter.
Michelle Clark - Morgan Stanley
Okay, so I know that you said the goal is to get 10% to 15% per store localized -- how can we think about that today? Is it 5% of the store that is localized?
Karen M. Hoguet
I don’t really have a number to that. My suspicion is it’s smaller than that in total although in some categories where we could react quicker, it could be that or more.
Michelle Clark - Morgan Stanley
Okay, and then the other question is on the SG&A line -- can you give us sense of how much of that $290 million has been realized? Is that bulk of that done for 2009?
Karen M. Hoguet
Well, there’s two pieces to the savings -- in the consolidations of the spring of ’08, we had said $100 million of which $60 million was recognized last year, so there was an incremental 40 for the first half of 2009 and that has been realized and we year-rounded on that as we got to the third quarter.
The second consolidation savings was from February of this year. That was an additional $400 million, of which we expected to realize 250. I think your 290 is that 250 plus the 40.
Michelle Clark - Morgan Stanley
That’s correct, yes.
Karen M. Hoguet
But the timing is a little bit different because the 40 was all in the spring and the 250 was later in the year.
As we forecast the fourth quarter, we will have achieved more than 250 this year -- hard to pinpoint an exact number. And as we look to next year, the question is will the 400 be the number, is it bigger, and that’s a harder thing to tell you until we are done with our 2010 planning.
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