Corie Barry: Yeah. I mean we’ve been pretty consistent as we’ve talked about the effects of inflation. We’ve been pretty consistent in saying, where it’s putting pressure on the consumer is because it’s in those key basic areas of need, fuel, food, lodging, consumables like the stuff you just kind of need every single day. And that’s what’s been eating into a lot of that pent-up savings, especially for some of the lower income demographics. And so if you start to get into a world where you see more disinflation in some of those areas, then as you would expect, you start to free up some of that share of wallet for potentially getting back into goods or some of the kind of higher ticket purchases. And so we’re watching that carefully.
Right now, still very elevated versus especially pre-pandemic, slowing down, and to your point, people start to talk about it, which over time, I think, could present some opportunity for people to move back into the goods space, also, of course, depending on how elevated that spend remains around services and things like vacations and spending outside the home.
Mike Baker: Yeah. Makes perfect sense. Okay. Thank you. Appreciate the color.
Corie Barry: Thanks.
Operator: Your next question comes from the line of Steven Zaccone of Citi. Your line is open.
Steven Zaccone: Great. Good morning. Thanks very much for taking my question. I wanted to ask a question on average selling prices. So it sounds like it was flat, slight improvement. What drove that improvement on a sequential basis by category? And then as you think about the fourth quarter, can you talk about your outlook for units versus ASPs?
Matt Bilunas: Yeah. I — we’ll get into the by category improvement to ASPs. Generally speaking, we are starting to, I would say, lap some of the ASP reduction. We’ve been seeing ASPs slowly get lower, also the last number of quarters. I think we’re starting to lap some of that deflation in that average selling price, if you will. So I think it’s probably as much as that as people are gravitating to in some cases, we mentioned that TV is an area of trade down that we are actually seeing. And so those do tend to lower your ASPs because it’s a big ticket item. And as we start to lap that, I think you’re starting to see some relief on the ASP sequentially. Again, I think in certain areas, so in terms of like Q4, clearly, we’ve been seeing unit pressure overall, but there are some areas where some of our bigger categories we are expecting the units to improve.
We’re expecting TV units to increase. We’re expecting to see improvements in notebook units as well. So it’s a little bit varied, but those are some of the bigger ones.
Steven Zaccone: Okay. Great. Thanks. And then Corie, I had a question. Just thinking about next year, I think you alluded to more stabilization and the potential for growth in the back half. I guess I was curious, how do you see the recovery playing out? We’re waiting for the tech refresh cycle. But if the overall promotional environment stays challenging, how do you think about the recovery from market share position or maybe if the consumer is willing to trade down, how are you positioned to outpace the industry overall?
Corie Barry: So if I think about how the last year has played out, this industry has largely been in a very promotional stance for over the last year. We’ve been pretty consistent in saying promos are back to, if not greater, than FY ’20 levels. So this is not a new phenomenon for us. So even as we head into next year, we’re lapping that. And even in that environment where you’ve seen that level of promotionality, as Matt said, we’ve sustained our share position. So I think the team has done a beautiful job positioning us well in a very promotional environment. And I wouldn’t be surprised to see that environment continue into the first part of next year. And again, we’re lapping that kind of similar environment last year. So it’s not a huge change in trajectory for us.
I think what starts to make the back half, in our view, potentially more interesting next year is really a function of the innovation cycles. And we can start to see a line of sight toward even read a little bit about, especially on some of the computing and processing side, devices that might start to feed into that as we head into the back half of next year. And back to Peter’s earlier question, we can start to see on the horizon, some of that newness and innovation really on the docket as you head into the back half and into holiday for next year as everyone again, it’s pretty incented to want to bring some vitality back to the industry.
Steven Zaccone: Thanks very much for the detail. Have a nice Thanksgiving.
Corie Barry: Yeah. Thanks. You too.
Operator: Your next question comes from the line of Jonathan Matuszewski of Jefferies. Your line is open.
Jonathan Matuszewski: Great. Thanks for taking my question. First one is on the competitive landscape. So you held market share in 3Q, and that’s consistent with your comments in the first half. Obviously, you guys have superior customer service and assortment. So what’s driving the success among competitors in the industry, who you’re tracking who are taking share? Is it purely a function of price? And how is that informing your pricing strategy over the next couple of quarters?
