Oliver Chen: Hi, thank you very much. You gave a lot of helpful comments on a cautious consumer. What’s in your control as you think about the product assortment and the switch of the consumer demand? And as we model forward, what are you embedding for traffic? Do you expect traffic to continue to be fairly volatile? And lastly, the younger customer as you intersect the brand renovation and private brands, what’s top of mind for captivating and getting the younger customer into the store? Thanks a lot.
Jeff Gennette: So let’s talk about it. When you think about Oliver and your three questions on product assortment, we see similar trends to what we’re seeing right now. So you basically have occasion-based categories that are still strong. And so when you look at what’s going on in up, when you look at luggage categories like that, those will continue. We do have those models, the pace to start to abate as you get into the back half of the year, but still strong. When you look at the businesses right now that have been quite challenged for us, the pandemic categories, we do actually expect them to start to pick up as we get into the back half. I think the big thing when you look at our disciplines and what we’ve done with inventory control is that we’re ready to be able to pivot where the customer goes on this.
We’re watching this very carefully, look at our trend curves, we look at what’s going on in Bloomingdale’s, which is, in many cases, early warning for us about things that are really doing well or will do well and those that are starting to taper off. The liquidity that we built into our open to buy is really gives us the flexibility what we call dry powder to be able to respond to where the customer is going. So we have done that well. We control our inventories, and we are very disciplined about how we’re allocating receipts. With respect to traffic, traffic has been relatively good. We expect that to continue. The consumer is still healthy. And we’re looking at conversions across both online and in-store to ensure that we are maximizing all that traffic that we’re getting.
But the consumer is under pressure. And so €“ and we expect what we saw, particularly with self-purchase that we quoted in the beginning of January that that’s going to continue all the way through 2023. So our guidance anticipates that. And then to your question about the younger customer, clearly, there are categories right now that we’re winning very much with the younger customer. We expect those to continue, where we have market share strength there. And then there is categories when we look at apparel. So the comment about private brand reimagination is really going to respond to all the life stages, which includes kind of the Gen Z and the alpha customer. And so looking forward to sharing those opportunities in the future as well as this younger customer and how we can take care of them with other offerings, particularly marketplace.
So that is very much in our mind when you look at the new categories that we’re adding, the new brands that we’re adding and look at this younger consumer and the opportunity to address them that way. And what we’re seeing for marketplace is categories that are doing well, we have the opportunity to bring them into our own format in the future. We’re evaluating that right now based on early learnings we’re getting from successes on marketplace. So the younger consumer is clearly in our sights.
Operator: Thank you. The next question is coming from Chuck Grom of Gordon Haskett. Please go ahead.
