We’ve been selling groceries as long as we’ve been selling gasoline. We offer a large and varied array of products—and everything in a given store from cigarettes, seasonal items, and energy drinks to dairy products, beer, and Casey’s branded bottled water is stocked and arranged to match that store’s customer demand. All products carry SKU numbers for instant sales and inventory information that lets us respond quickly to changing habits. For instance, in the last fiscal year energy drinks became more popular. In response, Casey’s doubled the shelf space allotted to this product. “The ability to address customer needs store by store is the most visible benefit we’ve gained from our investment in point of sale and related technologies,” said Mike Richardson, Vice President–Marketing. As we begin fiscal 2008, we have at least twelve months of sales data from every established Casey’s store. Thanks to our data-mining software, the management team can select and sort the information they need to meet customer demand and make decisions that will increase gross profit.	Cigarettes were a profitable destination item in fiscal 2007, and POS data helped us match rack space to customer preferences and keep tight control of inventory. Available in most of our stores since late in fiscal 2005, lottery tickets produced a double-digit increase in ticket sales during the year just ended. We profited most from increased store traffic and higher inside sales, but we also earned commission on the tickets we sold. The commission is accounted for separately and is not included in the grocery & other merchandise category results. Heavier store traffic, better inventory management, and a one-time benefit related to cigarettes contributed to a 12.8% improvement in the category’s gross profit. Total sales rose 11.1% with a margin of 32.7%. As you know we exceeded our 3.9% same-store sales target with a 4.6% improvement, and even without the one-time benefit we would have been only slightly off our 32.2% margin target at 32.1%. In fiscal 2008, we’ll refine efficiencies and further improve the match between product mix and customer demand at each Casey’s store. We expect to extend the category’s upward gross profit trend by increasing same-store sales 4.3% and achieving an average margin of 32.2%.