1
 
   
                                                                    EXHIBIT 99.1
    
 
                    REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
 
To the Board of Directors of Revco D.S., Inc.:
 
We have audited the accompanying consolidated statements of income, changes in
stockholders' equity and cash flows of Revco D.S., Inc. and Subsidiaries
(collectively the "Company") for the fiscal year ended June 3, 1995. These
consolidated financial statements and schedule referred to below (not presented
separately herein) are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements and
schedule based on our audit.
 
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
 
In our opinion, the financial statements (not presented separately herein)
referred to above present fairly, in all material respects, the results of
operations and cash flows of the Company for the fiscal year ended June 3, 1995
in conformity with generally accepted accounting principles.
 
Our audit was made for the purpose of forming an opinion on the basic
consolidated financial statements taken as a whole. The schedule accompanying
these consolidated financial statements is presented for purposes of complying
with the Securities and Exchange Commission's rules and is not part of the basic
consolidated financial statements. This schedule has been subjected to the
auditing procedures applied in the audit of the basic consolidated financial
statements and, in our opinion, fairly states in all material respects the
financial data required to be set forth therein in relation to the basic
consolidated financial statements taken as a whole.
 
/s/ ARTHUR ANDERSEN LLP
- ---------------------------------------------------------
Arthur Andersen LLP
 
Cleveland, Ohio,
   
July 27, 1995.