But the team is also at the same time really working on discretionary to be right on seasonal and home to meet their needs, but really it’s the consumable driving that trade over more than our effort and the works that we’re doing on the merchandising side. And then on the Dollar Tree side just as I’ve shared, I like what I’ve seen in the last two quarters where one is up 9.5%, the other one is 8%, that’s a great balance. And I think as we continue to provide that value on the consumables side, I think over time, we like when both are 50-50, 50% sale of discretionary, 50% consumables, and then as they grow over time, I think like Dollar Tree historically has always grown low single-digit comps with a combination of traffic and units in the basket.
And I think once we settle and cycle through that, providing that effort on the consumables side, we’ll get back to that normal cadence that we’ve seen in the past.
Scot Ciccarelli: So just from an earnings algorithm perspective, I’m not asking specific guidance for next year. Is it fair to assume, kind of, lower gross margins, but maybe more SG&A leverage on, kind of, a go-forward basis maybe than what we’ve seen historically? Just given the mix shift?
Jeff Davis: Yes, this is Jeff. Absolutely from a standpoint of given that the mix shift and some of the other cost pressures, margin isn’t much more under pressure. But given these increase in revenue, the opportunity to leverage our SG&A is definitely there.
Scot Ciccarelli: Got it. Thanks, guys.
Mike Witynski: Yes. And I would just say too, the other thing is as Family Dollar continues to prove their execution and drive market share in these products in DSV and national brands and then even in our private brands. Vendor rebates and allowances will follow that, because we’re executing better and Larry’s team is really working hard on trying to drive that. So it’s really even the mix within the mix as consumables grow, there is levers that we can pull with allowances and rebates and then mix in the private brands as that consumer shifts too, that should help with some of the margin pressure too.
Scot Ciccarelli: Very helpful. Thanks guys.
Operator: Thank you. We will take the next question from line of Joe Feldman from Telsey Advisory Group. The line is open now. Please go ahead.
Joe Feldman: Yes. Hey, guys. Good morning and thanks for taking the question. I wanted to ask you just to go a little deeper. On the private brands, where do you see the most opportunity? Like what maybe categories and where that you’re focused on and where you think you can drive some incremental improvement quickly?
Mike Witynski: I believe across the board. And Larry’s team, we have staffed up. We’ve brought in additional experts in this area on the private brand for Family Dollar. On the OTC and health, over-the-counter drug and health is where we’re going to be focused and leaning in first. And of course, on the paper side of it, we think there’s opportunity and then just on the everyday food side. So those would be the three big areas. And I think Larry’s team, we’re organizing around it. We’re looking at the brands and driving penetration by category comparing to the rest of the market. And we’ve partnered with a third-party broker to really help accelerate that. So those would be the three big areas, and it’s a huge focus for Larry and his team.
