We feel very good about our ability to augment where their gaps as well with our own mono-brand doors, also a House of Flight on Jordan. So we feel good about being on the front foot with our marketplace. I think the most wide and connected marketplace offense in the industry.
Matt Friend: Yes. And I think I would just add maybe one point and then I’ll hit the last part. When I think about the momentum that we’ve seen over the last several years from a digital perspective. You’re right, we have shifted our channel mix, and that’s been a consumer-led and a consumer-driven shift based on the consumers’ desire to want to connect with NIKE, both through our digital apps and through our stores What we saw this quarter wasn’t unexpected for us. And when we look underneath the momentum that we saw in our NIKE mobile app, we saw a strong growth, high single-digit growth in traffic. We saw member activity continue to increase both in terms of engagement and buying behavior and a higher basket size, a higher AOV.
And so we continue to be focused on creating the best personalized experience for our members from a digital perspective. And we believe that that’s going to continue to fuel growth in our digital business over the long term. I do think this year, the comparisons are going to not be linear as we go quarter-to-quarter channel to channel, given what transpired last year. But what we’re seeing from a consumer perspective doesn’t shift our dimensionality in terms of needing to do something different in order to serve consumer demand. As John said, we’ve got the biggest, deepest breadth of distribution of anyone and have the right partners to be able to serve the marketplace. As it relates to overhead, the numbers that I referenced actually impact our gross margins, our lower digital fulfillment cost that sits in our gross margins.
And it’s something that we’ve been focused on for some time. We started investing a couple of years ago in regional service centers in North America and in Europe and in pickup points closer to the consumer in Europe, all with the intention of building a supply chain that enables us to serve demand closer to consumers. It’s more sustainable because we don’t have to put product on airplanes, and leveraging our store footprint through O2O capabilities. And so we’ve been investing for a few years in developing and scaling those capabilities to be able to serve consumer demand. And as I look forward from here, our investments will be aligned with the way that we grow the business. In other words, we’ve invested to – and now we’re learning to operationalize and take advantage of these capabilities.
We are implementing our ERP in North America. We went live with our retail business in the first quarter, and everything has gone well. And we’re focused on bringing the second part of our North America business, the wholesale side of our North America business online and our new ERP later this year. So that is our largest investment in transformation of our supply chain and enabling us to operate like a retailer. And I couldn’t be more excited about the opportunity that it presents for us to really modernize the way we work and to serve consumers at speed across the marketplace.
Operator: And everyone, that does conclude our question-and-answer session. It also concludes our conference for today. We would like to thank you all for your participation. You may now disconnect.
