We are getting much better at really understanding where the customer is going in terms of potential trends and we are getting better with pricing science, which I will turn it over to Adrian to give you some feedback on that.
Adrian Mitchell: Absolutely and good morning Bob. I would just reinforce the thesis that Jeff described, which is inventory health is the gift that keeps on giving. The reality is that it spills into allocation, it spills into full price sell-through. And our discipline was initially the level, then we pivoted to the level of composition and now we are into things like the appropriate allocation by market, by store, by channel, so it’s really a discipline that we continue to mine for additional benefits. The pricing science is highly linked to that. We talked a couple of years ago about location-level pricing that is fairly scaled at this point where we are able to really look at style, by location to be able to understand what is the optimal price to maximize margin.
We have added the dimension of dynamic pricing, which allows us to really understand depending on a moment in time, what’s happening in the industry and how we need to respond but also, I think the next lever that we are thinking through quite a bit is this notion of personalized customer-centric offers and communication, which really allows us to begin to go after a reduced broad-based promotional platform. And that’s a tremendous opportunity. We are very excited about what we have seen in our tests. So overall, I would say there is more to come, but the pricing science capabilities continue to grow, to continue to expand and continue to get more sophisticated. And with that will come even more margin health.
Operator: Thank you. The next question is coming from Ashley Helgans of Jefferies. Please go ahead.
Ashley Helgans: Hi guys. Thanks for taking the question. Most of our questions have been answered. Just wanted to ask one on digital versus stores, those stores obviously had a really strong year this year. A year ago, you talked about achieving low to mid-40s digital penetration by 2024. Just was wondering if you could provide €“ or are you providing any update on that target, it looks like it will be around 32% to 34% this year. I know you have marketplace scaling for both Macy’s and Bloomies. So, just how focused are you on still scaling digital to that level? And then Adrian, maybe how does that digital target impact your long-term margin goals? Thank you.
Jeff Gennette: Let’s talk about, so digital obviously grew significantly over 2019. And when you look at our business in 2022, it was up 31% versus 2019, with traffic up 7% and conversion up 11%, but definitely a drop off from where we were in €˜21. So, kind of going through digital penetration through the years. It was at 25% in €˜19. In the pandemic, it was €“ it hit the 40% level. In 2021, it abated and went to 35% 2022, it went to 33%. And into your comment, we do see it stabilizing right now at the 32% to 34% range. So, that reset has really now occurred post pandemic, and we have a new baseline for digital penetration in €˜23. But we do believe that digital will grow in the future. And you mentioned one of the big ones for us is not only getting better with functionality and experience, but also what we can do with marketplace.
So, we have a lot of work for us ahead for us on that, but we are quite excited about the early learnings in that. We have done a lot on our website. We have done a lot of our mobile app. I mentioned marketplace, but we are leaving no stone unturned in terms of our opportunities in digital because part of the omnichannel flywheel is our presence there and how that basically addresses all the customer needs.
