Gregory Melich: Not at all. Great. And then second is on items in basket, trying to figure out how as comps slow, and I imagine you’re still getting that wage inflation, SG&A doesn’t delever more, why is that? If traffic’s still growing and we have inflation, is it just because items per basket are down? Or how do we think about managing the SG&A dollar growth in this not deflationary but disinflationary environment?
Richard Galanti: Yes, units are still up. And frankly, price inflation offsets it a little bit, it helps offset it a little bit, and I think the focus on trying to keep figuring out how to do things more efficiently. One of the things that, again, that we do religiously every 4 weeks at the budget meeting is the operators are talking about certain focus items, whether it’s improving overtime hours or things we’ve done to automate something, physically improve the flow of goods in a warehouse. We’ve done a pretty good job of that. And we’ve done that notwithstanding to off-season wage increases this year, 3 off-season wage increases, if you go back, I think, over the last 15 months. So our leverage there and a very slight deleverage is pretty impressive given that labor benefits is our single biggest expense category. So it’s productivity. And I think we’ve continued to do a good job with that.
Gregory Melich: And just so I’m getting the math right on the comp, if the comp is running 6 and inflation is running 6, but traffic is up 3, then items in basket would be down 3?
Richard Galanti: It’s mix. Yes, it’s mix.
Gregory Melich: It’s 100% ASP. Got it. All right. That great. Good luck.
Operator: Your next question comes from the line of John Heinbockel with Guggenheim.
John Heinbockel: Richard, I want to start with I know you guys have begun doing a lot more data analytic work, and you talked about maybe investing in price. Have you done much work on price elasticity by category or item? And you think in the context of non-foods is where there is softness, right, it’s not consumables. What can you do mid-course correction there, right, on nonfood? Is there elasticity where you can drive some share early in season by making targeted investments in those categories?
Richard Galanti: Well, I think there are, and we do. We don’t analyze, frankly, the price elasticity on a historical basis other than we know what works in the past and we keep doing it more. It’s pretty straightforward. But we’re not doing A/B tests or test let’s take this price delta in this region, down x or up only y; in a different region, see which one works better. We’re pretty singularly focused on if we lower the price, we’ll do more sales.
John Heinbockel: All right. And then to follow up on that, right, so again, you think about nonfood, you said maybe nonfood is going to be a little weaker. And it’s not all nonfood, right, it’s certain categories. Have you dialed back inventory? Do you want to get product — you get it in early anyway. I’m not sure you can get in any earlier. What do you do, if anything, I guess, inventory would be the biggest thing?
Richard Galanti: Well, first and foremost, is being in stock, and to the extent that we bring in a few things early. I think the anecdotal comment I mentioned about water sports and camping, we brought that a little earlier because we had some room. And there’s parts of the country, there’s no sense bringing in some of that stuff early given the weather right now. But at the end of the day, I think we’ve always done a pretty good job of that as well. The big thing is working with the suppliers. Using electronics as an example, these are anecdotal stories, but while sales were very strong for 2 years during COVID and supply chain challenges were still there, there was virtually no promotional things. There’s now more promotional.
