Randy Konik: Hey, guys. Good afternoon. Thanks for taking my questions. I guess first maybe will be helpful Mark or Jubran maybe give us some historical perspective on the Canadian market in thinking through, how you’ve seen this movie before in the numbers and how we should be thinking about how Canada performs generally speaking on this type of macro environment over the next, let’s say, couple of couple of years or so just give us your thoughts there would be super helpful. Thanks guys.
Mark Walsh: I think what I would say what’s really different about our position in the Canadian market. First our position in the United States market is our starting point Randy. So with 95% brand awareness and we estimate that we are — we’ve shopped by one in three Canadian households. So when you think about that we’re really woven into the fabric of the Canadian landscape. So as we think about that — this is that non-loyalty member that non-loyalty members the one that’s really the one that’s struggling. So our loyalty our loyalty members are certainly still coming in, still shopping, still feel good about where those trends are with those loyalty members we have very low attrition rates. They still represent 70% of our overall sales base and a couple of other points.
Shopper satisfaction in Canada is 85%. So again feel really good about where we are competitively within that Canadian construct. These are things I’m not sure we’ve seen in Canada at least not since I’ve been here on, you’ve got rising unemployment ticked over 6% last month. You’ve got an overhang of housing, affordability and availability and then obviously some inflationary pressures. We think we’re very, very well suited with our value proposition. We continue to gain share. And if you if you think about our two year stack in Canada just in the first quarter at 6.4 we believe with a 6.4 two year stack that we’ve actually gained some share. So I think again the value proposition, our debt awareness and our approach to our marketing is going to help us as the Canadian economy goes through this difficult time period.
Randy Konik: Great. And then maybe just give us some perspective on where we are with the various initiatives as it relates to the central processing centers and book processing initiatives just as it relates to improving long-term productivity and margin enhancement potential just give us your thoughts there? Thanks guys.
Jubran Tanious: Yes, hey, Randy, its Jubran. I can take that one on. Well, first of all, we feel we feel very good about CPC. So we currently have five CPCs. The latest one that we opened is in Minnesota. You know as we as we have opened these are our experience that has grown and we’re able to ramp them faster. And one of the very cool things about capability that it’s unlocked is if we think about our most recent CPC, the Minneapolis facility we’re actually using that to support what we call long-haul stores. So it services some stores in the Twin Cities, but it’s also supporting stores that are more remote four, five, six-hour drives in terms of Sioux Falls, Fargo, places where the labor market still continues to be very challenged and yet we’re able to bring all of the selection and value to those customers because of the presence of the CPC.
So, we’re already doing this. And as you think about the 2 Peaches acquisition, that’s what gives us the confidence to be able to quickly and nimbly bring selection and value to that customer as well because we’re already doing it. We do have plans to open a 6th CPC in the Los Angeles market, will be either later this year, possibly early 2025. ABPs, again, we’re far along the experience curve on ABPs, and by the time we end this year, we will have 12 facilities in the U.S. and seven locations in Canada. And they’re doing fabulous. Really pleased with the investment thesis on those and the return on invested capital. So, all-in-all, very pleased. We continue to make those investments like Mark talked about. And then, the only other one I would add is the offsite warehouse.
And I think we talked about this on a previous call, where one of the unlocks that we’ve had from CPC is the ability to open new stores that don’t necessarily check every physical attribute that we would need from a traditional perspective, right, the double dock doors, things that we’ve talked about in the past. Well, offsite warehouse is kind of a light version of CPC where we’re able to still use it to make new stores happen that couldn’t otherwise. So, there are markets where that is very applicable, Long Island, as an example. We have expansion plans in Long Island. As you think about the real estate and the availability of large warehouse space in Long Island, it’s very limited. And that’s where an offsite production warehouse comes into play and we’re going to be opening 1 there, that helps make new store growth on the island happen.
So did I answer your question, Randy?
Randy Konik : Yes, that was super helpful. Thank you so much. Really appreciate it guys.
Jubran Tanious: Thanks.
Operator: Your next question comes from the line of Brooke Roach from Goldman Sachs. Your line is open.
Brooke Roach: Thank you for question. You’ve provided a lot of context on some of the actions that you’re taking to drive a reacceleration in the Canada customer engagement so far. I was hoping you could elaborate on the early reads of what you’ve seen as you’ve begun to implement these changes. Has that driven a reacceleration in comp where those changes in marketing loyalty, discounts, and promotions have been affected? And specifically, what Canadian comp are you embedding in 2Q and for the full year within your guide?
Mark Walsh: I think as we think about — let’s start with the second part of that question first. We’re targeting — as we mentioned in the prepared remarks, we’re targeting a two-year stack of around 6.6% overall, and, yes, Canada being lower and the United States being a bit higher. And on the — it’s too early, Brooke, on the marketing efforts. We have taken — we’ve got four or five distinct efforts heavying up on the win-back program, we’re implementing some connected TV in a distinct market to drive traffic. We’re ramping up some promotional activities to drive category performance. And we’re certainly increasing our share of digital voice in several designated markets to see if we can drive foot traffic. Those initiatives have just gotten started, and I think over the next 3 months, we’ll have a much better read on the impact as we move forward. So, probably in the next call, I’ll be able to update the group on those efforts.
Brooke Roach: Great. Thanks. And then maybe a more comprehensive update on your 22 new store opening plans for the year. How do you anticipate these new store openings to split by geography? And how should we expect the cadence of those stores to split by quarter?
