Peter Keith : Okay. And then did Jonathan, it also referenced plans for a targeted 15% to 20% inventory reduction over the next year. I was hoping you could provide a little more insight on what you guys are working on for that level of reduction. And then just to push back on it, I guess wouldn’t the push to greater extreme value and closeouts actually create, greater inventory and working capital commitments on bigger buys?
Jonathan Ramsden: Yeah, it’s a fair point. On the second point, Peter, and actually we’d previously been targeting a somewhat higher increase in terms, so we’ve softened that a little bit to allow for the fact that, the closeout model may require some additional working capital investment. So, you’re absolutely right about that. I think when we look at our turn goals relatively where we’ve been historically 15% improvement would be sort of getting us back into that kind of zone. Some of the things from Project Springboard will influence that in terms of the effectiveness of inventory allocation where we think there’s a significant opportunity there. But overall, we think that is a very realistic goal given our historic turn rates.
And over time we’d like to do better than that. But you’re absolutely right that from a business model standpoint, as we pivot to extreme bargains and close out, we need to make sure we fully account for that and how we’re thinking about it going forward.
Bruce Thorn: And I’ll just add, as you know, some of the other things helping in that productivity is our ability to now flex assortments in our stores. We’ve got some stores that obviously, are stores that deal with more of the pantry customer and some stores that deal more with the home furniture customer. But in the past, in those historic turn rates, we’ve pretty much peanut buttered the assortment. Now we’re flexing that, so that gives us more productivity opportunity and open to buy for those closeouts. So, all of that coming together produces that 15% to 20%.
Jonathan Ramsden: And I’ll just add one other comment. You know, Peter, which is, if you look at the end of Q4, we’re guiding to a mid-teen’s reduction in inventory on a much lower reduction in sales. So, we’re starting to see that meaningful improvement in turn at the end of Q4 of this year.
Peter Keith : Very good. Thank you so much.
Bruce Thorn: Thanks, Peter.
Operator: Our final question today comes from the line of Krisztina Katai, Deutsche Bank. Please proceed with your question.
Unidentified Analyst: Hi. This is Jessica Taylor on for Krisztina. Thanks for taking our question. I was just hoping that, you could talk a little bit about the new collections in furniture that you brought in and any initial reads, on how that is driving on traffic or sales performance in the stores?
Bruce Thorn: Yes, the team, Margarita, Gen, and Tony just doing an outstanding job once again, and we have got a great vendor alliance with respect to the new Broyhill line. A larger domestic vendor that’s a great partner along with a handful of others. And what we have brought is the heritage collections back in an upgraded quality and style and fashion forward along with modern styles. And the other thing that we have done is added, a lot of the team’s added a lot of accent furniture, which is really resonating with our customers, because it is not ready to assemble, but it is there out on the floor. Great quality marble tops, very good actual wood type of credenzas, and things like that. All of that stuff is coming in at a very good value, off-price value and the customers are enjoying that.
The upholstery line has gotten much, much better. We are actually seeing the comps in that improve greatly. So, we are excited about how we are coming back into a good stock position with great product that our customer is going to love and is loving and that will only get stronger as we put more time between us, the COVID-19 stimulus, nesting, pull forward that we saw over the last couple of years, and feel good about the future.
Unidentified Analyst: Thank you. And then just as a follow-up. You mentioned that you are seeing a lot of promotional intensity. Can you talk a little bit more about what you are seeing in the promotional environment with your competition?
Bruce Thorn: I think promotional environment is always intense during this time. But, we have been able to put front and center our comp value, our extreme value, and that’s helping us be smarter about promotions when we actually, markdown. And so that’s, customers at the end of the day, they shop everywhere at this point, and they are looking for the price and value — price, quality, value combination. I think we are showing it very nicely there. I think our fiercest competition is in pantry. The pantry prices across the board, it is what she needs more than anything right now, especially at the low household income level, and that’s an area where we are going to compete harder and very deliberately go after extreme value offering and we will expect to improve those categories in short order.
Unidentified Analyst: Thanks a lot. Best of luck.
Operator: Thank you. That does conclude today’s teleconference and webcast. A replay of this call will become available. You can access the replay until December 14th by dialing toll-free 877-660-6853 and enter replay confirmation 13742519 followed by pound sign. The toll number is 201-612-7415. Replay confirmation number 13742519 followed by the pound sign. You can now disconnect and have a great day. We thank you for your participation.
