A small-box retailer operates their business very much the sameas their larger counter parts but simply utilize less squarefootage meaning they don't have as much space for their products,and therefore much less rent, and have fewer staff to deal with,which when combined can be a lot less overhead. With the small-boxlocations you will not have as much inventory but you can adjust byhaving an online presence or have the ability to send the clientstheir purchases the next day.

The economics are in favor of the small-box retailer, having tospend less on your lease rate means you can spend more onmarketing, inventory management, customer management and of courseless staffing. We are seeing several retailers that are currentlyin big-box location grow their presence by opening small-boxlocations that really are not far away. There is an entire newdevelopment of small-box retail that had its grand opening in thePacific Palisades neighborhood of Los Angeles on September22^nd and it's a huge hit. Customers will find small-boxstores located in that development that have big-box locationswithin a 15 minute drive. If this development proves to be thesuccess it looks like it's going to be it could be a lightning rodthat proves this is a great way for a retailer to grow their marketshare while maintaining control of their overhead costs.