We did not.Carla Casella Okay. But should that $10 million, should that grow going forward…Matt Schroeder Yes, it’s going to grow significantly, Carla. I mean, we’re at — this Q4, we were literally still building the base plan for ’24 and kind of finishing the process to really size the overall initiative opportunity.Elizabeth “Busy” Burr Yeah, I think the way to think about it is Q4 was just sort of testing our ability to execute this model and trying a few initiatives to sort of start to put the model in place. And with that effort, that’s where the $10 million came from. Now we are scaling that turnaround model across the enterprise. And so, I think to Matt’s point is that we expect far more than $10 million.Carla Casella Okay. And then, you mentioned reducing SKUs and reducing seasonal merchandise.
Can you just give us a sense for what percentage of your sales in the past year was seasonal merchandise and kind of what the impact of that is? Is it a lower gross margin? Is it a higher volatility segment? And how do you think about scaling back of seasonal?Matt Schroeder Yes. Carla, seasonal is not a material part of our front-end sales. But, this year, in seasonal, I would say we over ordered. And so, what happened was we had to mark down a lot of this merchandising, in some cases, even return it to get it cleared out. And so, not only did we have too much — it’s negative having too much inventory is to get it out of the stores, we had to get rid of it, in some cases, below cost.So, seasonal merchandise normally, if you order it right and you order the right amounts and manage the demand right, can actually be very profitable, but it wasn’t for us in this past year because of the over ordering.Carla Casella Okay.
And then, one last one. Just you mentioned that you did two sale leasebacks. Do you have any further sale leaseback opportunities? I mean, what’s — where do you stand now in terms of owned assets or real estate? And is there also an impact — a significant impact to your rent expense at least based on the sale leasebacks you’ve done — you did in…Matt Schroeder So, the sale leasebacks we did this year will have kind of a minor impact to rent, but not something I would call material headwind. We still have roughly, I think, 60 to 70 owned stores in our portfolio and we are still evaluating the ability to sale leaseback some of them. I would expect some level of sale leaseback proceeds in fiscal ’24, but not as much as what we saw in fiscal ’23.Carla Casella Okay.
Great. Thanks a lot.Operator And I will now turn the call back over to Mr. Matt Schroeder for some final closing remarks.Matt Schroeder Just want to thank everybody for joining us on the call today. We appreciate the questions and the interest. We also look forward to speaking to many of you on May 9 at the Bank of America Healthcare Conference in Las Vegas. Until then, take care, and have a good day.Operator This concludes today’s conference call. Thank you for your participation. You may now disconnect.
