In 2008, our focus will be on the completion of the VIP program at Stop & Shop and Giant-Landover, the start of the remodeling of our Giant-Landover stores, further repositioning of Albert/Hypernova, and driving the growth of Albert Heijn.
The VIP program will continue to impact margins with improvements expected later in the year. Underlying retail operating margin for the year is projected to be between 4.5% and 5.0%. Capital expenditure will be around €1.1 billion. Gross debt will fall further in 2008 as we progress towards our announced €2 billion debt reduction target. Net interest expense for the year is expected to be in the range of €270 million to €290 million.
The above is extracted from our press release of March 06, 2008: Fourth Quarter, Full Year 2007 Earnings Release