John Pearson: Great. This is John Pearson, sorry, I think he was referencing here. So we entered into the partnership with Walmart, we’ve been working on this project for about a year now, excited to have launched the initial pilot. The main difference is, it’s a Walmart branded program. So they are the ones that are driving the pet parent to the location. On the external, they also made an investment in an external facade that really draws attention to the services. And we’re partnering with them to be the operator to bring the veterinarian and the labor and staff and the equipment necessary. That’s the main difference with the model right now.
Jon Andersen: John, do you – what are your expectations for I think it’s in – is it in one location now? And how might this unfold if things go well over the next 12 to 24 months?
John Pearson: Yes. Right now, we’re focused on the pilot of the one location and we’re not privileged to share any more information outside of that, but expect that we’ll keep close on it and as we see success there, we’ll work closely with Walmart on future decisions.
Jon Andersen: Great. Thanks. Congrats on a good quarter.
Operator: [Operator Instructions] And our next question comes from John Lawrence with Benchmark. Please go ahead.
John Lawrence: Good afternoon. Thanks guys, and congrats again quarter-on-quarter.
Cord Christensen: Thanks, John.
John Lawrence: Could you talk a little bit about just the stores you elected to close? Can you give just some kind of rough what was the criteria? Was it regional, anything just across the board? Was it just either not cash flowing or what would be the sort of the criteria for the cuts?
Cord Christensen: I think John, as you know, we closed all the stores during COVID. We came out of COVID with a very different market. We were patient to do we could to run those locations to get a good data set to make good decisions. As we look at what has gone in the veterinarian market, labor and other things, we feel like we have a good handle on where that’s going to be for a long time. And if you couldn’t be in a position to add the hygiene model to it, if you couldn’t have good access to veterinarians because of the market or financially we just weren’t seeing that it was going to progress, it was time to do something different. That was the main criteria. So look, we have a lot of things going, right, and when you’re spending $6 million a year on something that’s not providing the return, and we have other areas of business where if we put $6 million into, we can accelerate and get a great return.
We had to do something different. So I think that’s really – that’s the crux, that’s what it is. We just have places we can put the money and make a lot more money.
John Lawrence: Great. Thanks. And secondly, when you look at, I mean, just a shot in the dark here and you look at that model on the services side, would it be fair something like the new model is more like 70% of the revenue, but half the cost compared to the old model? Is that anywhere close?
Cord Christensen: Yes, I wouldn’t say that. I think in general, what we’re seeing is we have a really strong place in the market where we’re able to marry up veteran labor with demand for pets with our mobile clinics. And we’re really trying to bring that model into our wellness centers. And when you add the hygiene model, you have the ability to do that. And so we have a very unique ability to pay veterans extremely well, put them in the stores when the labor or when the pets are there. And we have the ability to have the hygiene model with no vet there, keep the store building relationships, taking care of pets, making sure they’re well taken care of and do that. And so at the end of the day, when you look at the overall P&L, we think the P&L is very similar, but it’s really – we can do what the pet parent needs, when they need it and have the labor there for what they need for whatever the services they want to – what they want for their pet.
