John Garratt: Yes. So as we mentioned, we saw increased shrink later in Q3. We believe this is largely — Rupesh, largely attributable to the inflationary environment, coupled with higher inventory levels. Overall, as you know, retail is seeing higher shrink in this environment. Now this can have a tail. So we did say we expect this to carry over into Q4. I think it’s instructive as we listed out the gross margin drivers, I think that was the last on the list of drivers for Q3. But bear in mind, that was later in Q3. So we anticipate a larger — probably a larger impact if you have a full quarter of that in Q4. But in Q3, it was the smallest of the items we called out. But again, we’ve done this drill many times. If you look at our shrink levels, they’re still very low from a historical perspective, just not quite as low as we were at record levels recently.
But the team knows how to execute against this, and I think we’re putting the right tactics in place to address it. We’re increasing the amount of tagging with — for our EAS units. We’re leveraging technology like exception-based reporting, and we have very good process rigor and focus on this to tame it. But we’ll have a little bit of tail until these actions take hold.
Rupesh Parikh : Great. And then maybe just one quick follow-up question. So just on trade-in, I know your team expect to trade in to continue into Q3, and I believe Q4 as well. At this point, the trade-in that you’re seeing, is that consistent with what you’d see in a recession? Or is it — would you say it still below what you typically see in downturn?
Jeffery Owen: Yes. Rupesh, as I said earlier, we’re very pleased to be able to see that we’re growing share in customers across all income levels. So that’s encouraging. And really, again, I go back to the relevance of our brand of our box and our tremendous ability to listen and respond to what our customers are looking for. And certainly, I would tell you, the core customer is certainly behaving the way we expected her to. And also, as you think about it, one of the things that we continue to be pleased with is the fact that when we were introduced to that new customer during COVID, we continue to retain her at higher-than-expected levels. So I would say that as we sit here today, we feel real good about what we’re seeing across all the income brackets.
We feel real good about seeing the growth there. And I think we’re very well positioned to continue to serve them. And I think if you step back and think about Dollar General, we’re an all-weather brand, and we’ve been doing this for many, many years, and we continue to do that. And so — and we will continue to do that. We’ll go where the customer wants us to go, which we did this quarter. And we’re also positioned to continue to do that as we move forward and continue to deliver on our strategic initiatives that really makes a more well-rounded shop and a greater appeal for a broad swath of customers.
Operator: We have reached the end of the question-and-answer session. I’d now like to turn the call back over to Jeff Owen for closing comments.
Jeffery Owen: Well, thank you for all the questions and your continued interest in Dollar General. I just wanted to wrap up with 3 points. First, while we had some unanticipated challenges within our supply chain during the quarter, we’re confident in the actions we’ve taken to address these near-term issues and expect continued improvement as we move through Q4 and into next year; second, we believe we are well positioned to keep growing market share, especially in an environment where customers are even more focused on value; and third, we believe our strong value and convenience proposition combined with our robust portfolio of strategic initiatives sets us up for a very long runway of growth. And we couldn’t be more excited about where the future is headed. I want to thank you again for listening, and I hope you have a great day.
Operator: This concludes today’s conference. You may disconnect your lines at this time, and we thank you for your participation.
