Plans now call for opening between 60 and 65 net new stores in2009, and 50 to 60 new stores in 2010 and beyond. Earlier in theyear, the company had projected a 20% cut in new store growth in2009 from the 100 to 104 new units to open this year. The companyalso will open 35 PetsHotel in-store pet care centers annually,down from 42 this year and the 45 originally projected for2009.

"The world has changed, and when the world changes, we think wemust change with it," said Phil Francis, chairman and CEO. "At ourage and stage, this is the best for our shareholders, irrespectiveof the economic cycle."

Net sales were $1.2 billion, up 11.2% from the second quarter oflast year. Comparable store sales rose 4.0%. The company reportednet income of $37.2 million for the quarter, compared with netincome of $47.1 million for the same period last year.