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Exhibit 18
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October 4, 2000
Mr. Terry Moore
Chief Financial Officer
Drug Emporium, Inc.
Powell, Ohio
Dear Sir:
Note 2 of the Notes to Consolidated Financial Statements of Drug Emporium, Inc.
and Subsidiaries included in its Quarterly Report on Form 10-Q for the quarter
ended August 26, 2000 describes a change in policy for accounting for inventory
from the last-in, first-out ("LIFO") method to the first-in, first-out ("FIFO")
method.
There are no authoritative criteria for determining a "preferable" method of
costing inventories based on particular circumstances; however, we conclude that
the change in the method of accounting for inventories from LIFO to FIFO is an
acceptable alternative method which, based on your business judgment to make
these changes for the reasons cited in Note 2, is preferable in your
circumstances. We have not conducted an audit in accordance with generally
accepted auditing standards of any financial statements of the Company as of any
date or for any period subsequent to February 26, 2000, and therefore we do not
express any opinion on any financial statements of Drug Emporium, Inc.
subsequent to that date.
Very truly yours,
/s/ Ernst & Young LLP
