sales of weight management products are generally more sensitive to consumer trends , resulting in higher volatility than our other products . our sales of weight management products have been significantly influenced by the rapid increase and subsequent decline of products such as products containing ephedra , low carb products and cortislim ® . as a result of the ban of products containing ephedra by the fda in april 2004 , we added new weight management products to our weight management category , such as low-carb products , ephedra substitute products , and cortislim ® , , to offset the loss of ephedra product sales . however , the demand for low carb products overall have been on a consistent decline since early fiscal 2006 , which we believe was due to a change in demand for low carb products and the wider availability of popular products in the marketplace , and as such we have shifted our focus more to weight management products . during this decline in demand for low carb products we have continued to launch new weight management products , which has led to an increase in sales in our weight management category . moreover , as the rate of obesity increases and as the general public becomes increasingly more health conscious , we expect the demand for weight management products , albeit volatile , to continue to be strong in the near term . accordingly , we will continue to offer the highest quality products available in this segment . in addition to the weight management product lines , we intend to continue our focus in meeting the demands of an increasingly aging population , the effects of increasing costs of traditional healthcare and a rapidly growing fitness conscious public . we believe that the aging of the u. s. population provides us with an area of opportunity . the u.s. census bureau reports that the number of individuals in the 65 and over age group is expected to double in the next 25 years . moreover , it is estimated that by 2030 the 65 or older group will comprise 20 % of the population . the increase in the population of this age group , coupled with the need for 23 increased supplementation as digestive abilities wane , provides us with an enhanced sales opportunity . for example , anti-degenerative supplements , such as chondroitin sulfate , have demonstrated consistent increases in sales growth . we will continue to offer products such as chondroitin sulfate to meet the demands of this market segment . we believe that as the costs of healthcare continue to rise , lower-cost alternatives to prescription drugs and preventative supplementation will continue to be an option for the american consumer . according to the california healthcare foundation , medical spending as a percentage of gdp increased from 5.2 % to 16 % between 1960 and 2006 , and is projected to reach 19.5 % of gdp by 2017. as an increasing number of the population seeks to avoid costly medical issues and focuses on prevention through diet , supplementation and exercise , we expect the demand in this market segment to provide us with continued opportunities . for example , lower-cost alternatives to expensive cholesterol lowering medications such as fish oil ( essential fatty acids ) , are experiencing increasing popularity . according to the new journal delaware online , more than 50 million adults are involved in either some sort of regular fitness program or sports activity , with over 25 % of current health-club members being over the age of 55. according to the international health , racquet and sportsclub association , there has been a 3.3 % increase in health club participation from 2005 to 2006 , which is continuing the trend from 2001 through 2005 where there was a 20 % to 25 % percent increase in wellness program participants . moreover , studies by the british heart foundation found that adults over 40 who exercise are at less than half the risk of experiencing heart disease compared to their sedentary peers , which is information we believe will further fuel this growth . we believe that the increase in our sales of sports supplements , which help with recovery and performance , is an indication of this growth , and that this will continue as fitness programs become an accepted lifestyle rather than a trend . when taken in context of the rising costs of healthcare , we believe the vms industry as a whole stands to benefit . our historical results have also been significantly influenced by our new store openings . since the beginning of 2003 , we have opened 289 stores and operate 414 stores located in 37 states and the district of columbia as of march 6 , 2009. our stores typically require three to four years to mature , generating lower store level sales and store contribution in the initial years than our mature stores . as a result , new stores generally have a negative impact on our overall operating margin and sales per square foot . as our recently opened stores mature , we expect them to contribute meaningfully to our sales and store contribution . critical accounting policies the preparation of financial statements in conformity with accounting principles generally accepted in the united states of america requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements , and the reported amounts of revenue and expenses during the reporting period . critical accounting policies are those that are the most important portrayal of our financial condition and results of operations , and require our most difficult , subjective and complex judgments as a result of the need to make estimates about the effect of matters that are inherently uncertain . story_separator_special_tag the vitamins category was one of our fastest growing categories in fiscal 2008 , as we experienced significant growth in sales of multi-vitamins , as we released new special formulations this fiscal year , and in vitamin d , which we believe was due in part to recent favorable press . product sales in the sports nutrition category increased at a greater rate than the overall increase in net sales during the fiscal 2008 , and have done so since mid fiscal 2006. we believe this is due largely to the continued growth in the fitness-conscious market as well as the diversity of new product introductions . 28 direct net sales to our direct customers increased $ 3.1 million , or 4.1 % , to $ 79.0 million for fiscal 2008 compared to $ 75.9 million for fiscal 2007. the overall increase in our direct sales was due to an increase in internet sales of $ 9.8 million in fiscal 2008 , offset by a decrease in our catalog sales . the increase in our web-based sales was primarily due to a greater influx of customers this fiscal year as compared to fiscal 2007 , as a result of our prior web-based marketing initiatives . we have reduced our catalog circulation and catalog customer prospecting as we believe catalog purchasing in general is declining in popularity as a purchasing medium , especially in the wake of the growth of online shopping . in addition , as we continue to open more stores in new markets , some catalog customers choose to shop at our retail locations . cost of goods sold cost of goods sold , which includes product , warehouse and distribution and store occupancy costs , increased $ 45.3 million , or 12.6 % , to $ 405.7 million for fiscal 2008 compared to $ 360.3 million for fiscal 2007. the components of cost of goods sold are explained below . cost of goods sold as a percentage of net sales increased to 67.4 % for fiscal 2008 compared to 67.0 % for fiscal 2007. product costs increased $ 31.6 million , or 11.3 % , to $ 311.4 million during fiscal 2008 compared to $ 279.8 million for fiscal 2007. product costs as a percentage of net sales decreased to 51.8 % during fiscal 2008 compared to 52.0 % for fiscal 2007. the percentage decrease was primarily the result of a decrease in price promotions for our products of approximately 0.5 % ; a decrease in inventory markdowns of 0.3 % , as well as an increase in inventory efficiency of 0.3 % , offset in part by an increase in product costs of approximately 1.0 % as a percentage of sales in fiscal 2008 versus fiscal 2007. warehouse and distribution costs increased $ 3.2 million , or 17.3 % , to $ 21.8 million for fiscal 2008 compared to $ 18.6 million for fiscal 2007. warehouse and distribution costs as a percentage of net sales increased to 3.6 % for fiscal 2008 compared to 3.5 % in fiscal 2007. the increase was mainly attributable to increases in shipping costs as a result of a having significant number of new stores , with many of them being at greater distances , during fiscal 2008 as compared to fiscal 2007. occupancy costs increased $ 10.5 million , or 16.9 % , to $ 72.4 million for fiscal 2008 compared to $ 61.9 million for fiscal 2007. occupancy costs as a percentage of net sales increased to 12.0 % during fiscal 2008 compared to 11.5 % for fiscal 2007. this increase as a percentage of sales is mainly attributable to the increases in utilities and real estate tax expenses as well as increased rent for our newer store leases . gross profit as a result of the foregoing , gross profit increased $ 18.4 million , or 10.3 % , to $ 195.9 million for fiscal 2008 compared to $ 177.5 million for fiscal 2007. selling , general and administrative expenses selling , general and administrative expenses , including operating payroll and related benefits , advertising and promotion expense , and other selling , general and administrative expenses , increased $ 15.1 million , or 10.6 % , to $ 158.6 million during fiscal 200 8 , compared to $ 143.5 million for fiscal 2007. the components of selling , general and administrative expenses are explained below . selling , general and administrative expenses as a percentage of net sales for fiscal 2008 decreased to 26.4 % compared to 26.7 % for fiscal 2007. operating payroll and related benefits increased $ 5.6 million , or 10.4 % , to $ 59.0 million for fiscal 2008 compared to $ 53.5 million for fiscal 2007. the increase is due mainly to our increase in retail locations throughout fiscal 2008. operating payroll and related benefits expenses as a percentage of net sales decreased to 9.8 % during fiscal 2008 compared to 9.9 % for fiscal 2007. this was largely due to experiencing greater sales per hour during fiscal 2008. advertising and promotion expenses decreased $ 0.5 million , or 3.9 % , to $ 13.2 million for fiscal 2008 compared to $ 13.7 million for fiscal 2007. advertising and promotion expenses as a percentage of net sales decreased to 2.2 % during fiscal 2008 compared to 2.6 % for fiscal 2007 , as we are reducing our catalog advertising and prospecting efforts . 29 other selling , general and administrative expenses , which include depreciation and amortization expense , increased $ 10.1 million , or 13.3 % , to $ 86.4 million in fiscal 2008 compared to $ 76.3 million for fiscal 2007. the increase was due primarily to an increase in depreciation and amortization of approximately $ 2.6 million , reflecting our expanding operation and the amortization of the purchased intangible assets in fiscal 2008 ; $ 3.2 million for corporate payroll expense which was primarily due to an increase in

liquidity and capital resources our primary uses of cash are to fund working capital , operating expenses , debt service and capital expenditures related primarily to the construction of new stores . historically , we have financed these requirements from internally generated cash flow , supplemented with short-term financing . we believe that the cash generated by operations , together with the borrowing availability under the credit facility ( described below ) , will be sufficient to meet our working capital needs for the next twelve months , including investments made and expenses incurred in connection with our store growth plans , systems development and store improvements . during fiscal 2008 we spent approximately $ 27.9 million , out of the $ 31.9 million of total capital expenditures , in connection with our store growth and improvement plans . we expect to spend approximately $ 18.0 million on capital expenditures in fiscal 2009 , most of which will pertain to 30 to 35 new stores we anticipate opening throughout year . we opened 62 new stores during fiscal 34 2008 , and closed two stores . our working capital requirements for merchandise inventory will continue to increase as we continue to open additional stores . currently , our practice is to establish an inventory level of $ 165,000 to $ 200,000 at cost for each of our stores , a portion of which is vendor-financed based upon agreed credit terms . in addition , 30 day payment terms have been extended to us by some of our suppliers allowing us to effectively manage our inventory and working capital . we were in compliance with all debt covenants as of december 27 , 2008. at december 27 , 2008 , we had $ 1.6 million in cash and cash equivalents and $ 52.3 million in working capital compared with $ 1.5 million in cash and cash equivalents and $ 51.2 million in working capital at december 29 , 2007. we expect to be in compliance with these same debt covenants during fiscal 2009 as well .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources our primary uses of cash are to fund working capital , operating expenses , debt service and capital expenditures related primarily to the construction of new stores . historically , we have financed these requirements from internally generated cash flow , supplemented with short-term financing . we believe that the cash generated by operations , together with the borrowing availability under the credit facility ( described below ) , will be sufficient to meet our working capital needs for the next twelve months , including investments made and expenses incurred in connection with our store growth plans , systems development and store improvements . during fiscal 2008 we spent approximately $ 27.9 million , out of the $ 31.9 million of total capital expenditures , in connection with our store growth and improvement plans . we expect to spend approximately $ 18.0 million on capital expenditures in fiscal 2009 , most of which will pertain to 30 to 35 new stores we anticipate opening throughout year . we opened 62 new stores during fiscal 34 2008 , and closed two stores . our working capital requirements for merchandise inventory will continue to increase as we continue to open additional stores . currently , our practice is to establish an inventory level of $ 165,000 to $ 200,000 at cost for each of our stores , a portion of which is vendor-financed based upon agreed credit terms . in addition , 30 day payment terms have been extended to us by some of our suppliers allowing us to effectively manage our inventory and working capital . we were in compliance with all debt covenants as of december 27 , 2008. at december 27 , 2008 , we had $ 1.6 million in cash and cash equivalents and $ 52.3 million in working capital compared with $ 1.5 million in cash and cash equivalents and $ 51.2 million in working capital at december 29 , 2007. we expect to be in compliance with these same debt covenants during fiscal 2009 as well .
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 Suspicious Activity Report : sales of weight management products are generally more sensitive to consumer trends , resulting in higher volatility than our other products . our sales of weight management products have been significantly influenced by the rapid increase and subsequent decline of products such as products containing ephedra , low carb products and cortislim ® . as a result of the ban of products containing ephedra by the fda in april 2004 , we added new weight management products to our weight management category , such as low-carb products , ephedra substitute products , and cortislim ® , , to offset the loss of ephedra product sales . however , the demand for low carb products overall have been on a consistent decline since early fiscal 2006 , which we believe was due to a change in demand for low carb products and the wider availability of popular products in the marketplace , and as such we have shifted our focus more to weight management products . during this decline in demand for low carb products we have continued to launch new weight management products , which has led to an increase in sales in our weight management category . moreover , as the rate of obesity increases and as the general public becomes increasingly more health conscious , we expect the demand for weight management products , albeit volatile , to continue to be strong in the near term . accordingly , we will continue to offer the highest quality products available in this segment . in addition to the weight management product lines , we intend to continue our focus in meeting the demands of an increasingly aging population , the effects of increasing costs of traditional healthcare and a rapidly growing fitness conscious public . we believe that the aging of the u. s. population provides us with an area of opportunity . the u.s. census bureau reports that the number of individuals in the 65 and over age group is expected to double in the next 25 years . moreover , it is estimated that by 2030 the 65 or older group will comprise 20 % of the population . the increase in the population of this age group , coupled with the need for 23 increased supplementation as digestive abilities wane , provides us with an enhanced sales opportunity . for example , anti-degenerative supplements , such as chondroitin sulfate , have demonstrated consistent increases in sales growth . we will continue to offer products such as chondroitin sulfate to meet the demands of this market segment . we believe that as the costs of healthcare continue to rise , lower-cost alternatives to prescription drugs and preventative supplementation will continue to be an option for the american consumer . according to the california healthcare foundation , medical spending as a percentage of gdp increased from 5.2 % to 16 % between 1960 and 2006 , and is projected to reach 19.5 % of gdp by 2017. as an increasing number of the population seeks to avoid costly medical issues and focuses on prevention through diet , supplementation and exercise , we expect the demand in this market segment to provide us with continued opportunities . for example , lower-cost alternatives to expensive cholesterol lowering medications such as fish oil ( essential fatty acids ) , are experiencing increasing popularity . according to the new journal delaware online , more than 50 million adults are involved in either some sort of regular fitness program or sports activity , with over 25 % of current health-club members being over the age of 55. according to the international health , racquet and sportsclub association , there has been a 3.3 % increase in health club participation from 2005 to 2006 , which is continuing the trend from 2001 through 2005 where there was a 20 % to 25 % percent increase in wellness program participants . moreover , studies by the british heart foundation found that adults over 40 who exercise are at less than half the risk of experiencing heart disease compared to their sedentary peers , which is information we believe will further fuel this growth . we believe that the increase in our sales of sports supplements , which help with recovery and performance , is an indication of this growth , and that this will continue as fitness programs become an accepted lifestyle rather than a trend . when taken in context of the rising costs of healthcare , we believe the vms industry as a whole stands to benefit . our historical results have also been significantly influenced by our new store openings . since the beginning of 2003 , we have opened 289 stores and operate 414 stores located in 37 states and the district of columbia as of march 6 , 2009. our stores typically require three to four years to mature , generating lower store level sales and store contribution in the initial years than our mature stores . as a result , new stores generally have a negative impact on our overall operating margin and sales per square foot . as our recently opened stores mature , we expect them to contribute meaningfully to our sales and store contribution . critical accounting policies the preparation of financial statements in conformity with accounting principles generally accepted in the united states of america requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements , and the reported amounts of revenue and expenses during the reporting period . critical accounting policies are those that are the most important portrayal of our financial condition and results of operations , and require our most difficult , subjective and complex judgments as a result of the need to make estimates about the effect of matters that are inherently uncertain . story_separator_special_tag the vitamins category was one of our fastest growing categories in fiscal 2008 , as we experienced significant growth in sales of multi-vitamins , as we released new special formulations this fiscal year , and in vitamin d , which we believe was due in part to recent favorable press . product sales in the sports nutrition category increased at a greater rate than the overall increase in net sales during the fiscal 2008 , and have done so since mid fiscal 2006. we believe this is due largely to the continued growth in the fitness-conscious market as well as the diversity of new product introductions . 28 direct net sales to our direct customers increased $ 3.1 million , or 4.1 % , to $ 79.0 million for fiscal 2008 compared to $ 75.9 million for fiscal 2007. the overall increase in our direct sales was due to an increase in internet sales of $ 9.8 million in fiscal 2008 , offset by a decrease in our catalog sales . the increase in our web-based sales was primarily due to a greater influx of customers this fiscal year as compared to fiscal 2007 , as a result of our prior web-based marketing initiatives . we have reduced our catalog circulation and catalog customer prospecting as we believe catalog purchasing in general is declining in popularity as a purchasing medium , especially in the wake of the growth of online shopping . in addition , as we continue to open more stores in new markets , some catalog customers choose to shop at our retail locations . cost of goods sold cost of goods sold , which includes product , warehouse and distribution and store occupancy costs , increased $ 45.3 million , or 12.6 % , to $ 405.7 million for fiscal 2008 compared to $ 360.3 million for fiscal 2007. the components of cost of goods sold are explained below . cost of goods sold as a percentage of net sales increased to 67.4 % for fiscal 2008 compared to 67.0 % for fiscal 2007. product costs increased $ 31.6 million , or 11.3 % , to $ 311.4 million during fiscal 2008 compared to $ 279.8 million for fiscal 2007. product costs as a percentage of net sales decreased to 51.8 % during fiscal 2008 compared to 52.0 % for fiscal 2007. the percentage decrease was primarily the result of a decrease in price promotions for our products of approximately 0.5 % ; a decrease in inventory markdowns of 0.3 % , as well as an increase in inventory efficiency of 0.3 % , offset in part by an increase in product costs of approximately 1.0 % as a percentage of sales in fiscal 2008 versus fiscal 2007. warehouse and distribution costs increased $ 3.2 million , or 17.3 % , to $ 21.8 million for fiscal 2008 compared to $ 18.6 million for fiscal 2007. warehouse and distribution costs as a percentage of net sales increased to 3.6 % for fiscal 2008 compared to 3.5 % in fiscal 2007. the increase was mainly attributable to increases in shipping costs as a result of a having significant number of new stores , with many of them being at greater distances , during fiscal 2008 as compared to fiscal 2007. occupancy costs increased $ 10.5 million , or 16.9 % , to $ 72.4 million for fiscal 2008 compared to $ 61.9 million for fiscal 2007. occupancy costs as a percentage of net sales increased to 12.0 % during fiscal 2008 compared to 11.5 % for fiscal 2007. this increase as a percentage of sales is mainly attributable to the increases in utilities and real estate tax expenses as well as increased rent for our newer store leases . gross profit as a result of the foregoing , gross profit increased $ 18.4 million , or 10.3 % , to $ 195.9 million for fiscal 2008 compared to $ 177.5 million for fiscal 2007. selling , general and administrative expenses selling , general and administrative expenses , including operating payroll and related benefits , advertising and promotion expense , and other selling , general and administrative expenses , increased $ 15.1 million , or 10.6 % , to $ 158.6 million during fiscal 200 8 , compared to $ 143.5 million for fiscal 2007. the components of selling , general and administrative expenses are explained below . selling , general and administrative expenses as a percentage of net sales for fiscal 2008 decreased to 26.4 % compared to 26.7 % for fiscal 2007. operating payroll and related benefits increased $ 5.6 million , or 10.4 % , to $ 59.0 million for fiscal 2008 compared to $ 53.5 million for fiscal 2007. the increase is due mainly to our increase in retail locations throughout fiscal 2008. operating payroll and related benefits expenses as a percentage of net sales decreased to 9.8 % during fiscal 2008 compared to 9.9 % for fiscal 2007. this was largely due to experiencing greater sales per hour during fiscal 2008. advertising and promotion expenses decreased $ 0.5 million , or 3.9 % , to $ 13.2 million for fiscal 2008 compared to $ 13.7 million for fiscal 2007. advertising and promotion expenses as a percentage of net sales decreased to 2.2 % during fiscal 2008 compared to 2.6 % for fiscal 2007 , as we are reducing our catalog advertising and prospecting efforts . 29 other selling , general and administrative expenses , which include depreciation and amortization expense , increased $ 10.1 million , or 13.3 % , to $ 86.4 million in fiscal 2008 compared to $ 76.3 million for fiscal 2007. the increase was due primarily to an increase in depreciation and amortization of approximately $ 2.6 million , reflecting our expanding operation and the amortization of the purchased intangible assets in fiscal 2008 ; $ 3.2 million for corporate payroll expense which was primarily due to an increase in

