The other thing I’d call out is we’re not at parity at rack.com and Rack stores. And in particular, I’d go back to our decisions last quarter to stop doing store fulfillment and Rack stores for rack.com. And there are really two reasons that — and these are two things that we at Nordstrom, we ask ourselves all the time. One, how do we provide a great customer experience; and two, how do we get profitable growth and store fulfillment at our Rack stores was not providing the level of customer experience that we hold ourselves to, we had higher cancellation rates there because it’s a little more difficult finding the product in a treasure hunt environment in the stores. But secondly, kind of to your contribution margin point, the economics get tougher with the lower price points we have in the Rack versus our Nordstrom banner.
So didn’t meet our standards of profitable growth. So I use that as an example of — there are levers that we are actively pulling to address contribution margin in our off-price digital business. Do you want me to take urban, or do you want to comment? Okay. As far as urban and suburban, there’s not — that’s leveled out a bit. We still — our urban stores got hit harder during the pandemic. So they are growing faster in general versus our non-urban stores. And New York, as we’ve called out all year, it continues to be one of our very top stores in sales growth over last year.
Ed Yruma: Thank you.
Operator: Next is Noah Zatzkin with KeyBanc.
Noah Zatzkin: Hi. Thanks for taking my question. Just on the Rack on the opportunity at the rack to accelerate improvement in brand mix, given excess inventory in the channel, could you just provide an update on what you’re kind of seeing in the channel there? And any progress on that opportunity? And then second, just on the decision to reduce store base futile at the Rack. Is that a permanent change, or would you expect to revert back to the prior minimum for free ship to or at some point in the future? Thank you.
Anne Bramman: Yes. So Pete, do you want to take the — what you’re seeing in the market? And then do you want to finish Erik on the second question on that.
Pete Nordstrom: Yes. I think as everyone has noticed, in the last few months, pretty much everyone in retailing is over inventory at some level. And as a result of that, that plays right into our hands. I think, in terms of being able to be selective about pursuing great brands, the great prices and hear us talk about premium brands. And these are really the brands that you would typically find in a Nordstrom store that are not ubiquitously distributed amongst typical off-price retailers. We’ve got great relationships with all these brands. And what we try to do is to be first call for them when they have inventory to clear. And like I said, this there’s inventory out there to be had. And I think it puts us in a great position of being able to be selective. So, we feel very good about what would be possible for us in 2023.
Erik Nordstrom: Yes, and take the store fulfillment and Rack. Certainly, we would revise that. Just to be clear, there was two actions we took last quarter. One was doing store fulfill of rack.com orders. The other was having free — the threshold for free shipping to a Rack store or Rack.com or order. The store fulfillment is the bigger impact of those two. But that threshold is something we’ve consistently look at. And yes, again, we look at the business model there and we look at the customer experience. So, we have a lot of initiatives underway to continue to improve the inventory accuracy that we have that helps with the customer experience side by reducing our cancellations. So, we do think that will get better going forward.
