Savers Value Village, Inc. (NYSE:SVV) Q1 2024 Earnings Call Transcript

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So doing that well helps ensure that on-site donations continue to grow into the future. So as far as we’re concerned Bob, there is no reason over the long-term in all three countries that we would not expect on-site donations to grow and it may take a dip here or there. But over the long haul, they’re going to grow. GreenDrop, you asked about GreenDrop, GreenDrop is doing well. I think on the last call, we talked about that it is an education process for a lot of municipalities on how the staffed GreenDrop model works. Both of the new locations that we’ve opened, They are performing at or better than plan in terms of the quality of the goods, the volume and the unit cost. So we’re pretty excited about that. I think we will — we’re on track to open somewhere between 20 and 25 of those this year.

Taking a step above Bob, I would tell you from an overall raw material supply situation. We’re actually in an oversupply situation right now, pretty good place to be. And it’s normal course of business for us to periodically kind of open the Pressure Relief Valve but sell off some of the excess periodically, which we do. But from an overall supply situation quality, amounts, we feel very good about that. And I think the last part of your question was to be just, how do we think about GreenDrop and bringing that to the Atlanta market? Look, I think, I think first things first, we want to transition the stores. We do like the incumbent supply situation that they have, which is a mix of channels some home pickup, some bins but your thesis is spot on.

I think that we would all agree. There’s an opportunity for us to not just improve and build upon, the four-wall performance of the stores, but to also bring some horsepower and sophistication to the supply acquisition part of the equation as well, Bob.

Bob Drbul: Thank you.

Operator: And next question comes from the line Mark Petrie from CIBC. Your line is open.

Mark Petrie: Hey, good afternoon. Thanks for that. And just quickly on Canada, the regions outperform or underperform? Or did you see any variance across sort of urban or suburban or major markets versus smaller markets?

Mark Walsh: No. We’ve not seen any particular either regional or urban suburban trends?

Jubran Tanious: Yeah. Pretty consistent Mark, especially on a two year stack basis, …

Mark Petrie: Yeah. Okay.

Jubran Tanious: … normalizing odd weather. Yeah.

Mark Petrie: Yeah. Okay. Perfect. Thanks. And curious if there’s just any shift the labor availability in any of your markets? And I guess specifically in Canada, just given as you acknowledge the sort of shifting or weakening economy?

Jubran Tanious: Yeah. It’s a good question, Mark. I mean, well, what I would say is, what’s great for us and this applies to all three countries is, going all the way back to January of 2023 until this point in time, we have seen our turnover, decline sequentially. And again, Mark has talked about this in the past, in terms of engagement scores. And so we feel good about that. From a vacancy perspective, it’s held. It’s held pretty steadily. So it varies by market, Mark, but on the whole — on the whole at a country level in Canada, labor availability it’s not holding us back and anyway.

Mark Petrie: Okay, appreciate it. Thanks. All the best.

Jubran Tanious: Thanks Mark.

Operator: There are no further questions at this time. I will turn the call over back to you Mr. Walsh.

Mark Walsh: I think I’d like to thank everyone for their time and interest today in Savers Value Village. And we look forward to speaking with many of you in the days and weeks to come. Thank you so much.

Operator: Ladies and gentlemen, thank you for participating. You may now disconnect.

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