Operator: And our next question comes the line of Robbie Ohmes from Bank of America. Your question, please.
Robbie Ohmes : Thanks for taking my question. My first question, Jack, I just wanted to clarify, I think you said 35 stores for next year, and I thought you guys had been saying that you might be working towards 40 stores for next year. Is, is 40 off the table for next year?
Chip Molloy : This is Chip. Not really. Where we are is, as we look at the stores and the opening stores, our expectation is we could have more than 35. We have several in the tail end of the year, so it’s pretty back half loaded. And if we have any slippage, we just don’t want to provide a number out there if there is slippage in the middle of the year. So right now, we feel really confident on 35. We have more in the pipeline. It’s just we are kind of managing it. There is Q4 slippage.
Jack Sinclair: And I think it’s appropriate to do that in the context of the marketplace. The construction is a little bit uncertain at certain locations. And that’s the only reason we have been a bit cautious about it. Like we said in the script, we have got 100 signed-off sites that are being signed through our real estate committee, and we have got, I think, 65 or 70 leases already signed. So, we have got plenty in the pipeline to make this work. This is just really trying to reflect what might happen in November, December next year as opposed to January, February, and for $0.35 comfortable, maybe we get a few more.
Robbie Ohmes : Got it. That’s really helpful. And then just on the digital strength, is that — can you talk more about what you guys are doing to drive digital, or is it also related to the DoorDash partnership working. But, better-than-expected or Instacart still performing well? Any help on that would be great.
Jack Sinclair: We are comfortable with our partnerships with both Instacart and DoorDash have come into the business and added some value to us in terms of understanding the customer and using some of that dynamic and some of that information. I think we will be able to use more of that going forward. So, I am quite excited about the relationship with both of them, not just with around the e-commerce business, which has been pretty strong for us, but also in terms of the data and the understanding how can use that information to help us to communicate digitally. If you look back over the last three or four years in terms of our communication, we have fundamentally changed this from our paper-based communication play to a much more digital-based communication play.
And we have made some progress on the personalization side of digital communication what I have been very pleased with in the marketing communication is that there is so many different, one of the teams on and things that the marketing team comment a lot is, there is so many stories that you can tell for our business because we have got such a variety of attribute-based stories to tell people, whether it be gluten-free or Keto [ph] or Paleo or plant-based or that those stories can come alive. And the way to make them come alive and the way they have done it really, I think, quite successfully, and it will get better is how we have communicated digitally and how we are picking the right. We have changed our media agency. We are operating in a different way with around our media, and trying to get a bit more bespoke in what we do.
And I think we have made some progress on that. And basically, going forward, digital is going to be the — the digital communication is going to be the key to what we are doing going forward. And we have made some progress, but we have got a long way to go.
Robbie Ohmes : Got it. Thanks Jack.
Operator: [Operator Instructions]. And our next question comes from the line of Krisztina Katai from Deutsche Bank. Your question, please.
Krisztina Katai: Hey guys. Thanks for taking the question. And my congratulations to you two as well. So, question on the customer engagement focus that you have had in ’23, right? You have launched new marketing, you have personalization efforts. And with that, as we think about the consistent positive traffic that you have been seeing, can you maybe talk about how much incremental wallet share you are taking, and what are you seeing on customer frequency across your various cohorts, and just how to think about the runway there to engage the lowest quartile or quintile of your customer base?
Chip Molloy: You said a lot there on questions, Krisztina. We have made some progress in terms of how we are communicating. We are gaining track. We’re gaining new customers and we are getting a little bit a few more trips from existing customers. And as we talked in the script, it is becoming an omnichannel game for us that the really successful customers are ones that are playing in both e-comm and in the physical bricks-and-mortar business. So, we’re seeing some progress on both sides of that equation, both new customers and existing customers. All of them play into this space of this health enthusiast. We continue to get more and more data on that space, and we continue to work hard at making sure that we really understand how much share of wallet we’re growing.
I think it would be probably premature for me to talk numbers on that specifically. We’ve got some information on that and we’ll work it being able to articulate that better going forward in the future. But specifically, the work that we’ve been doing has been very much about targeting those customers, digitally communicating those customers, and trying to bring this, we don’t have a big share of people’s total grocery spend. We just need a little bit more to make this come alive. And that’s kind of what’s been happening over the last few quarters as we see traffic growing, both in terms of e-com traffic, bricks, and market traffic, and encouragingly, we’re seeing a consistent traffic growth across the nation as well, whether it be in our less established markets in Florida and our more established markets in California and all points in between, we’re seeing a consistent patch on across the board, which is giving us a lot of encouragement.
Krisztina Katai: Got it. That’s great. And just a follow-up question on unit growth, it sounds like 35 is the number that you feel very confident in for 2024, but as it relates to opening the stores on time and staffing them, is there any difficulty that you might be having in terms of recruiting labor and retaining them, or that’s really just you trying to be more sort of conservative with the opening schedule and potentially do better than what you’re planning for?
Jack Sinclair: Well, certainly the 35 is based on potential, either construction challenges going forward as opposed to labor challenges going forward. We, if anything, it’s got a little bit, you are seeing more applications for jobs in our company than we’ve ever seen before, and the quality of applications are getting better. As you know, it was quite a challenging environment through the pandemic in terms of filling our stores and filling the jobs that we had. We are catching up and caught up and beyond on that in terms of the quality of applications that we’re getting and the number of applications, retention rates are as a good level as we’ve ever been in our company. And I think that’s part of how we build the culture in here.
