Note 3 Inventories

Merchandise inventories, as of December 28, 2019 and December 29, 2018, were valued as follows:



(dollars in thousands)		2019		2018
LIFO	$	204,043	$	211,911
Average cost		75,763		68,845
	$	279,806	$	280,756

Management believes the use of the LIFO method for valuing certain inventories represents the most appropriate matching of costs and revenues in the Company’s circumstances. If all inventories were valued on the average cost method, which approximates current cost, total inventories would have been $70.7 million and $76.5 million higher than as reported on the above methods as of December 28, 2019 and December 29, 2018, respectively. During 2019 and 2018, the Company had certain decrements in its LIFO pools, which had an insignificant impact on the cost of sales.