Joseph Feldman: Got it. Okay. And then maybe just a quick follow-up. Anything to talk about on shrink because I know that there was an issue with shrink even for you guys at one point. And I know you guys have cracked down on making sure members are showing their cards when they walk in the store. And obviously, when you leave with your goods, you’re checking your receipts. But anything we should think about with regard to shrink going forward and recent trends?
Richard Galanti: Thankfully, nothing at all. It’s really — I think what we already talked about was a combination of, as we went into some self-check out over the last several years and then perhaps more recent things that you read about in the paper, we get less impacted by the latter as well. Maybe we saw a couple of basis point delta upward on a very low number of basis points to start with. So we’re fortunate in that regard.
Joseph Feldman: Got it. Thank you and happy holidays, guys.
Richard Galanti: Same to you. Thank you.
Operator: We’ll take our next question from Laura Champine with Loop Capital.
Laura Champine: Thanks for taking my question. I wanted to dig in a little bit more into some of those numbers on the column. The ancillary profit improvement, I think that’s where you’re — I’m just wondering what drove that. And on the operations line, it sounds like that pressure in SG&A didn’t come mostly from wages and I’m wondering where it did come from.
Richard Galanti: Yes. On the ancillary line, it’s gas and e-com and it’s a combination of increased sales penetration and increased margins within those businesses. The thing about gas is I think everybody out there that has gas stations, what we have found is we’ve been able to see improved profitability not just in the last quarter or two, but over the last few years — last three to five years, improved profitability in gas because others are making more, and we’re allowed to make a little more. When we do our competitive price shops on gas, which we do weekly at every gas stations, we operate with our neighboring competitive gas stations. On the e-comm side, I think driving more sales has helped us in the margins there as well.
Laura Champine: Thanks. And then just on the operations…
Richard Galanti: Yeah. On the wages, while we pointed out – I pointed out on the call, I think there was like four or so basis points in total from those two distinct increases, we do other increases like over half of our employees are top of scale. They get an increase every March that’s significant as well, significant relative to basis points. When you have lower sales figures. I mean, and – the rest of it is all the other lines like energy costs and the like.
Laura Champine: Got it. So most of the pressure is probably coming from wages, not just those two discrete callouts you had?
Richard Galanti: It’s more than half. I don’t have the exact figures with me.
Q – Laura Champine: Got it. Thank you.
Operator: Thank you. And there are no further questions at this time. I’d like to turn the call back over to Richard Galanti for any additional or closing remarks.
Richard Galanti: Well, thank you, Lisa, and thank you, everyone on the call. We’re around to answer questions and have a happy holiday. And I think this is a record time of finishing this call. So enjoy the holidays. Thank you very much.
Operator: Thank you. And that does conclude the presentation. Thank you for your participation today, and you may now disconnect.
