And so, we’re watching those kind of trends, but we don’t see anything yet that is alarming to us. We continue to monitor it. And again, we’re pretty darn pleased with the 15% growth in our commercial business.
David Bellinger: Got it. And then, just on the commercial program growth, that seemed to step up a little in Q1. It was about 5% year-over-year. Can you give us an update on how those programs are maturing? Is it still something like three to five years for those units to gain some material traction, or are you now seeing an accelerated pace in ramp-up, just given all the progress in the commercial business and the mega hub strategy?
Bill Rhodes: Sure. Well, we certainly stepped up openings in the first quarter. But remember, we’re at about 88% of our stores have the commercial program today. There’s no vision that we’re going to be 100% or anywhere close to that. As you would imagine, the per store and per program economics of our commercial business over the last couple of years have changed pretty meaningfully. So, there are programs that now make sense to be open that two years ago, we might want to service them from another program. So, that’s what you’re seeing. We may open another 100 or so, but I wouldn’t expect for massive growth rates in commercial openings. And you’re exactly right. It typically takes four or five years for those programs to mature.
I think as we’ve gotten stronger, they come out of the box higher than they did before. And we’ll see what — if the maturity lasts as long as it used to. The one place that is very different, they mature — we don’t know how long it takes for them to mature, but they come out of the gates much higher our mega hubs. It’s amazing to see the volumes that we do almost day one coming out of a mega hub.
David Bellinger: Thank, Bill. Enjoy the trip to Mexico.
Bill Rhodes: All right. Thanks. I look forward to it.
Operator: The next question is coming from Mike Baker at D.A. Davidson.
Mike Baker: Okay. Thanks, guys. A couple of questions. The spread between the ticket growth and inflation widened a little bit. It’s now — I think it was 4 percentage points in retail versus 3 last quarter. Remind us, is that — are you seeing — is it fewer units per transaction? Is it a trade down to less expensive items? Just any color on what’s going on there?
Jamere Jackson: Yes. It’s primarily basket mix that’s impacting that. One of the things we’ve been very disciplined about is moving retails, as we see cost and we’ve been very transparent about what we’re seeing there and been very disciplined about what we’re doing. This is the entire industry.
Mike Baker: So, when you say basket mix, does that mean people trading down to lower more entry-level price points or private label? Just what exactly do you mean by basket mix?
Jamere Jackson: It could actually mean the types of products that are being purchased relative to what we saw in the previous period.
Mike Baker: Okay. And do you see that as any kind of sign of the consumer being strapped, or is it just sort of a random situation? What would cause that, I guess?
Jamere Jackson: Again, as we talked about the consumer, if you think about it from a macro standpoint, I mean, clearly, the consumer is feeling the pinch of inflation on multiple fronts. And quite frankly, inflation is going to erode consumer spending overall. But in our business, where we see the primary pressures in our discretionary categories and our bread and butter failure and maintenance categories, the demand has been there. And the actions that we’ve taken from a pricing standpoint have not impacted volume in a meaningful way, so. The other thing I’ll say about just the consumer in general is it’s clearly a two-speed world. The middle and upper end consumers have stronger balance sheets, and they’re continuing to spend in a meaningful way and the lower end consumer is pitched.
So, what we’re seeing from our business standpoint is quite frankly consumers, when they have an opportunity, as Bill mentioned, to potentially trade into DIY from DIFM for certain things, they will do that. And these are the kinds of things that we’d expect consumers to do over time. But I wouldn’t read anything into the fact that tickets are 1 point or 2 below what we’ve seen historically, most of that again is mix related.
