But like you seen us do in the past two years, we will scale that pretty quickly across €˜23 and ’24. So product, product, product for sure. The second thing would be the systems. There’s no doubt that the system, the new ERP system that you picked-up on really is a game-changer for us. It will give a new tool set to our Buy team, in particular, so that they can plan and allocate smarter baseline climate, based on trend, based on replenishment needs or not and so forth and so on. And so we really don’t have those sophisticated tools that many other retailers have had for years. And so we’re looking very much to that. So that’s the number two and it kind of sits in concert with the product initiatives as you can imagine, because we want to put all of those product initiatives in the right store and so on.
And then third would be the remodel program. Third only, because the product and the system will drive us to a higher-level of sophistication. And then the CTX should really kick in the gear even better than they are today, because we’ll be smarter when it comes to nurturing those CTX remodels in the future. So that’s a little bit of a force rank. I think I’d add one more thing, which would be, our ability to utilize data in general across the business and just get smarter across all our functions. And so part of our ERP rollout was a new data center of excellence and that’ll be used by all functions in the business, which will make us more efficient and productive in our DCs and across our stores from a labor and other standpoint in-store.
So lots to come, but that’s, a little over three four year, and I think that will all contribute to productivity.
Chuck Grom: That’s a great answer. And just one more to follow-up. And this might be a little premature, but when you think about the number of stores you could add in 2023, and the number of remodels, is there any metrics you can share with us at this point in time or are you want to wait until January? Just because 13% of the fleet in that nice new CTX format could be a big driver for you guys next year.
David Makuen: Yeah. No, I’m glad to hear your view on that. A little premature for us to share any specifics, like I mentioned in the call where we’re knee-deep in planning, but I can assure you that all of what I ranked and then some are in kind of our sites to plan against them to develop a point-of-view for ’23, that we will share early next year.
Chuck Grom: Great, thanks and congrats.
David Makuen: Thanks, Chuck. Take care.
Operator: Thank you. Our next question is from the line of Dana Telsey with Telsey Advisory Group. Please go ahead, your line is open now.
Dana Telsey: Hi, good morning, everyone. The gross margin in the inventory levels definitely came in better than expected. Can you unpack the puts and takes of the gross margin and how you’re thinking about inventory levels go forward? And then when you think of your core customer base, David, anything that you’re noticing different regionally or share gains that you may be making given the trade downs? Thank you.
David Makuen: Hi, Dana. Thanks for calling in. We’ll take these. I’ll actually start with the customers and I’ll turn it over to Heather for inventory and gross margin, but from a customer standpoint, we are pleased with the patterns we are seeing. And one of the biggest patterns that’s exciting us is, we’re attracting kind of more of that higher-end of our income range. So keeping in mind our average income is about $40,000. We are seeing folks more than we normally see above that number kind of up to that $50,000, $55,000 range. And so, we’re seeing some nice new customer capture their and they’re responding to the portion of our mix that is the higher retail. So even though they’re coming to us for what we’re known for, meaning, everyday values, great churn rate products.
