Jubran Tanious: Yes. Hey, Brooke. Good question. So, we plan on opening — by the time we finish second quarter, we will have opened four of the 22 locations, three of those are in the U.S., one in Australia. By the end of the third quarter, we will have opened an additional 11, four of those are in the US, six are in Canada, one in Australia. And then in the fourth quarter, we have the remaining seven of which five are in the US, two are in Canada, so up to 22 that puts 12 of them in the US. And again, overall, I’m very pleased with how the stores have gone performing in line with expectations. US stores off to a fabulous start. And one of the things that we talked about on a previous call was the cadence where we are back-end loaded this year.
And a lot of that is a function of the real estate muscle that we’ve been building up. So once we get into 2025, I can share, we already have 13, in the hopper, seven of those in Q1, which is still forming. The concrete hasn’t set on that yet, six in Q2 certainly still forming. And this is all a function of what I would say is now just a mature real estate team, where we are at steady state. We expect these store openings to feather across the quarters in a much more balanced way. And so we’re really on the front end of that here starting in the beginning of Q2 and into Q3. What other data point, we went ahead and took a look back at some of the “unofficial deal” the active deals sort of pre-real estate committee if you will, a hopper of potential deals.
And we looked at this May 1 last year, what did that hopper look like versus effectively where do we sit today? And right now, we’re sitting at 2.5 times, volume of active deals than we did this time last year. So again, everything we can see, very pleased we’re proud of the team and the momentum and the flywheel that they have built, and just encouraged for not just remainder of year, but how we’re looking into 2025.
Mark Walsh: Yes. And just one, it’s a reinforcing — reinforcing and probably redundant point. But we do have 21 of the 22 stores for this year, the leases are signed. So, we’re feeling absolutely terrific about the momentum, we’ve generated over the last 18 months on real estate.
Q – Brooke Roach: Great. Thank you so much for the color. I’ll pass it on.
Operator: [Operator Instructions] Your next question comes from the line of Peter Keith from Piper Sandler Canada. Your line is open.
Q – Peter Keith: I’m not in Canada, but Good afternoon, everyone. So I wanted to just ask about 2 Peaches maybe you could compare and contrast to 2nd Ave acquisition because I recall 2nd Ave, I think you actually dialed back the sales to work on profitability. It sounds like 2 Peaches is completely different. Maybe the sales are a little low, because you’re saying you’re going to ramp those up. And secondarily, are you going to convert those to the Savers brand name. And then lastly, — I think you just said $7 million of revenue for maybe seven months of sales so seems like a pretty low dollar amount overall.
Mark Walsh: So I’ll answer. I’ll let Jubran jump in on most of those questions, put on to me — we quite like the Value Village name. So we’re going to we’re going to keep it in Georgia.
Jubran Tanious: Absolutely. And yes Peter, you’re comparing or your compare and contrast to 2nd Ave is a great comment because yes, it is kind of the opposite. So what we see when we look at these seven locations is we see great four-wall potential in these locations. They’re in good trade areas. They’re in good centers. We plug them into our real estate modeling. And I know what I would tell you is that, we were looking at these as new organic locations being brought to our real estate committee, they would be approved. So I think that the challenge for a variety of reasons is that given the quality of the real estate and the four-wall potential of these stores on effectively what we’ve seen over time is, our thesis is that the customer has been under fed from a selection perspective.
So, again, given the nimbleness, given the flexibility with the high LCPC that we talked about, we’re able to quickly convert two of those still leveraging the Value Village banner and Dom increased basket and transactions as we go.
Mark Walsh: We see great. We see great potential and this is an inroad obviously to the southeast and our ability to supply this — or supplement supply through the CPC in Maryland is just a big, big win. And one of the things that’s super interesting about what the process and how to buy and lead the processes, we basically looked at universe of the two Peaches stores and did basically one-to-one analysis on each one of those stores. And yes, seven passed muster than we said we love the seven. We actually we actually did not take three of the stores because they weren’t up to our real estate standards. So we really love the portfolio that we got. And we think this is a great way to get ourselves into the deep south. We’re really excited about this.
Peter Piper: Okay. And at what it was $7 million of revenue for the remaining seven months of the year. Is that correct?
Mark Walsh: That’s correct.
Peter Piper: Okay. All right. And separately — and maybe a little bit follow up on Brooke’s question. I’m just trying to get comfortable with maintaining the comp guidance. So, fair enough if you’re kind of thinking about the low end that does to me imply like a 2.5% for the rest of the year. And if I break that down further, I kind of have to model out like a 4% for the U.S. and then flat for Canada. So, it kind of implies pretty healthy acceleration in both countries? And maybe is that kind of a good framework and if so help us get comfortable with that framework?
Mark Walsh: Well, I think I’d be one of the things is certainly the comps get easier as the year progresses. If you recall our [indiscernible] last year and as we think about second half of the year look at it’s about that those two-year stacks and we’re comfortable in that 7, 7.5 range in the U.S. for the two-year stack and 5 to 5.5 in Canada, which ultimately gets you to that 6.5 two-year stack for the full year for as the consolidated entity.
Peter Piper: Okay. Very good. Thanks so much guys and good luck.
Operator: Your next question comes from line of Michael Lasser from UBS. Your line is open.
Michael Lasser: Good evening. Thank you so much for taking my question. Can you quantify what the impact will be from being slightly more promotional in Canada in an effort to support the comp? And if some of the economic weakness that’s currently happening in Canada comes to the U.S., your comp weaken here, would you take similar action by being a bit more promotional? And how would you frame the potential impact in that case? Thanks.
