Bill Werner: Yes. We directly come at it, we have taken and expect to continue to take share from grocery. I love your term share donor. We very much like thank our grocery competitors for their reliable donation of share every year, year in and year out. And we’ll continue. Our expectation is that we’ll continue to do that. We talked about the weekly shop. We want to win that weekly shop. Who are we winning it from? We’re winning it from our grocery competitors. And then we want to fill out that basket with GM and other items. I don’t know if there’s anything you want to…
Bob Eddy: I think we’ve taken it from more than grocery, too. If you look at the numbers, I think we’ve taken share from math and even from some of our club competitors in certain markets, too. It’s a nice recognition of our model, first and foremost, that we can take share from everybody, but our performance and our better value too that we can deal with our club competitors much more effectively, too.
Bill Werner: I want to add one more thing to that. So two things for consideration. I talked about earlier about same-day delivery, right? So I’m far away from the club. I’m getting $100 basket delivered to my house for cheaper than I could go to the grocery store and buy it myself. Like there’s 25% difference that offers up this huge structural advantage for us to invest into convenience to break down what was grocery’s primary structural advantage of their convenience. And same thing. Think about something like BOPIC, right? If you’re a club is right next to a grocery store, like why would the people to grocery store be doing BOPIC there when they could be doing across the street for 25% rise? So I think about — when you think about that, how that structural advantage and with Monica and her team have done with all the great work on the digital side, just breaks down, right?
The convenience was grocery’s biggest asset. Well, that’s going to go away in the future. So where the dollars can go, they’re going to go with the value is the best. So that’s where — again, why we feel really bullish about the long term.
Corey Tarlowe: That’s great. Really helpful. And then I guess a follow-up for Monica. So digital, I think, is now around 9% of the overall business. Where do you think that, that can go longer term? And then what do you see as some of the lowest-hanging fruits for you as you continue to enhance the digital channel as we look ahead?
Monica Schwartz: The way we believe think about digital is how is it driving value for our overall member proposition, right? Where they convert and actually purchase is irrelevant to us. We want to make sure that we are giving whatever capabilities they need for that. So we think there’s a lot of still runway to grow that penetration. But more importantly, the penetrations we talked about earlier, which is using digital to service you and continue to grow your business and your support.
Bob Eddy: That’s great. Maybe we’ve got time for maybe one more. Oliver?
Oliver Chen: Oliver Chen, TD Cowen. You have a lot of awesome digital capabilities. As you think about customer lifetime value, how would you prioritize the lower-hanging fruit in the top three items? And then second, on the journey ahead with automation, what your thoughts about micro fulfillment centers, sortation centers, AI and inventory management and how that may manifest in the road map ahead.
Bob Eddy: Yes. Maybe, Jeff, you can talk a little bit about what we’re doing from an automation perspective. Jeff, as I said earlier, runs our supply chain and our clubs and fuel stations, and has started a project to introduce automation into our clubs. You’ll see some of that today on the tour, and we’ll get into our distribution centers in the future. So why don’t you take that one?
Jeff Desroches: Thanks Bob. Yes. So in the club side, we’ll be rolling out robotics across the entire footprint. And these are robots that basically will help us eliminate manual tests. So think of shelf scanning, think of checking price accuracy. They’ll also help identify out-of-stocks, right? So when something is not available on the shelf. From the DC side, we’re actively testing this year automated forklifts, different fulfillment capabilities, automated power-building, automated container offloading and then also some technology to help with management of pallets. We have a lot of pallets within the network. So what I would say is that we’re going to test and learn. But then once we have an unlock, just like we’re doing with in-club robotics this year, we’re going to move fast.
The other thing that does from an efficiency standpoint, think of the and curbside. But we have team members picking those products within the club to deliver really fast service for that curbside experience. By knowing exactly where everything is in the club, we can optimize those pick paths. So we’re thinking about it holistically looking across first team member experience, right, to make sure that their time is being spent on the most value-added activities, but then also what efficiency do we get and then invest that efficiency back into the member value. So more to come there, but we’re very focused on automation and a lot of the advancement that’s happened across the industry over the last several years.
Bob Eddy: And it’s so important, as we’ve talked about, investing that back into our membership. Jeff talked about the pick paths for our team members that, that go through our clubs and pick orders. My son, Will, 16-year-old kid, I think he is the world’s best picker of products. And as he will tell you, he’s been at our club since he was born. He’s a very good picker. I probably wouldn’t say that to his face even though he might be listening. And so we’re going to have a challenge between the robot path and Will to see who can pick faster. It will be interesting to see that. It would be really cool technology and those of you who have followed us forever. Do you ever think we’d have robots? No, really a neat way to do it. So I think that’s — sorry, second.
Oliver Chen: What are the top three incremental LTV opportunities? We talked about ?
Jeff Desroches: Yes. Yes. I mean higher tier penetration, engagement with our promotions and digital engagement with our digital assets. Those are — that sort of — those are the levers we pull.
Bob Eddy: Not to mention co-brand.
Jeff Desroches: Higher tier penetration, I would put in that.
Bob Eddy: Fair enough, Yes. Perfect. Listen, thank you for joining us today. That’s all the time we have for questions. Appreciate it. I think you’ve heard a great story today. I hope you’d agree with that. We are incredibly excited for our future. And I can’t wait to see you guys on our tour this afternoon and then in the future, as we hopefully continue to report even more progress in our ability to provide great value to our members and grow our business going forward. So thanks for being here today.
