Chip Molloy: I’ll just follow on a little bit. When I think about the strength of the quarter, we had a strong quarter in California, but the other places where we’re seeing strength Mid-Atlantic and Florida, where we’re really starting to get that brand awareness, we’re starting to see the strength build and over indexing as you would expect in those markets. But it’s now encouraging. It feels like it’s €“ we’re starting to get that brand awareness.
Krisztina Katai: That’s Great. Thank you for answering all of those questions. Good luck.
Jack Sinclair: Thanks, Krisztina.
Operator: Thank you. Our next question comes from Kelly Bania with BMO Capital. You may proceed.
Ben Wood: Hi. This is Ben Wood on for Kelly Bania. Thank you for taking our questions. We first wanted to discuss the comment on the trade between units and basket increasing potentially as inflation comes off a little bit, if you don’t mind. It seems like in general that grocers are guiding to a pretty meaningful comp deceleration as a inflation potentially abates. What are you guys seeing that gives you the confidence that units will accelerate throughout the year to potentially offset that expected slowdown in inflation? Anything to help us think about units and basket drivers would be helpful?
Chip Molloy: Ben, for starters, our expectations are not units will accelerate in the basket. Our expectation is that the sequential bleed of units will slow and mitigate. And when you do that year-over-year, your compares get to where it’s not a negative year-over-year. It’s a flat or flat that even could be slightly up. But that’s our expectation. We don’t expect as inflation comes down that will accelerate those units.
Jack Sinclair: And we’ve seen some data points that would support what Chip just said, certain categories you’ve already seen kind of big dilution in inflation. It’s not that it’s gone to deflation, but it’s not been as much inflation. So categories like the meat category where you’ve seen a kind of flattening out of inflation. The relative €“ and again, just to emphasize Chip’s points, the relative reduction in units per basket slows down. And that just from a math point of view, adds back to the number that we need going forward. So that’s the basic assumption in it. And I think if you look back in history, and it’s always dangerous to go too far back, when you see changes in price €“ elasticity changes when price inflation dilutes. So I think we’re feeling that there’s enough data points to give us some confidence in how we’re articulating how our basket’s going to evolve going forward.
Ben Wood: Great. That’s super helpful. And then I just wanted to talk about SG&A a little bit, it seems like SG&A growth in 2022 came in a little bit ahead of expectations. So just wondering if you could walk us through the puts and takes there and how that compared to your plans. And then just looking forward, how’s the current labor environment and what is your forecast going forward and what’s contemplated in guidance?
Chip Molloy: Well, as it relates to SG&A for the €“ for this past year, I think we were very articulate in the script, but SG&A were fighting labor cost, we’re fighting that but we’re managing that. We’re managing that through both operational improvements that we’ve made in our stores, the movement of ours. So we’re managing through that. But certainly it’s a pressure that continues on the cost per labor hour. We’ve seen cost increases on supplies that directed the store source. So not resellable stuff that we need to do packaging type stuff for meals, et cetera. So we’ve seen cost increases there that we’re working really hard and manage against. And then the other side of SG&A as our e-com business has outpaces our business and growth.
