Michael Fiddelke: I’m happy to start with the shrink question, Ed. In the third quarter we still saw year-over-year pressure so about 40 basis points of year-over-year headwind. That’s less pressure relatively than we saw in the first two quarters of the year. And it was a little better than we thought it’d be. And so those are encouraging signs of some progress in the right direction but to be clear, still a year-over-year headwind in Q3. And so as we’ve said before, shrink’s a lagging metric. We think progress there probably doesn’t happen quickly. But we’re focused on progress overtime. And you’ll see us continue to take the actions to get a better outcome there overtime, but it’s not one that we’d expect overnight.
Christina Hennington: And on the discretionary side, I said it in my prepared remarks, but there was an underlying shift in the third quarter, compared to the second quarter with both Apparel and Home accelerating nicely. And so that’s our continued goal is to make sure that we present the right level of newness to build the business back to positive territory over the long-term. We are however picking our bets. And so our cautionary planning to inventory has bought so much goodness in the total P&L on the operation that about — it’s about being choiceful and placing our bets.
Edward Yruma: Thank you.
Operator: Thank you. Our next question is from Kate McShane with Goldman Sachs. You may go ahead.
Kate McShane: Hi. Good morning. Thanks for taking our question. We wonder if you could talk to traffic trends by month throughout the quarter. And just wondered how much better traffic in the third quarter versus second quarter was driven by customers coming back after what we saw in June.
Michael Fiddelke: Yeah. So when we think about what we see in traffic, as you heard in our prepared remarks it was good to see sequentially, traffic improve quarter-over-quarter at a slightly faster rate than the top line did. And we’re excited about the work teams do that balance of newness and value and the investments we continue to make in the business to turn traffic back in our favor over time. And so that’s where you’ll see us focused Kate.
Kate McShane: Okay. Thank you. And then our follow-up question is just around promotions. Are you seeing any kind of increase in vendor support when it comes to promotions versus what you saw last year?
Christina Hennington: As we’ve talked about the consumer is responding to promotions and so the market is responding accordingly. With that said, I’d say, it’s still a rational environment. And the healthy inventory position that we’re in allows us to continue to offer great value to our guests without chasing empty calories.
Michael Fiddelke: Kate I might offer just one more piece of context on traffic. Even with the tougher sales trends that we’ve seen so far year-to-date, through the first three quarters of this year versus pre-pandemic, traffic is up over 20% in total. And so we feel really good about the engagement that we’ve built with guests over the last few years. We think that’s an asset and a base that will really benefit us well going forward.
Kate McShane: Thank you. And John Mulligan, congratulations.
Operator: Thank you. Our next question is from Joe Feldman with Telsey Advisory Group. You may go ahead.
Joe Feldman: Thanks, guys. Good morning. And I wanted to ask, can you talk a little bit more about what you’re seeing from unit perspective in terms of unit sales? And I know as you mentioned in the transcript that units are down a little bit. But are you starting to see any stabilization there? And how should we think about unit sales going forward? And also if you could touch on the Grocery aspect of that as well I’d be curious – or Essentials I should say.
Christina Hennington: Yes. So Brian hit on this in his prepared remarks that the industry has seen a slowdown in unit performance over many quarters in a row. And that is because the pressure on the consumer is really real and they’re having to make those choices. I also shared in my remarks that in the frequency businesses, which we think of as Food and Beverage and Essentials and Beauty that in the third quarter we saw prices come down so that we comped over the peak of inflation. The prices came down that’s an industry-wide phenomenon. And as a result, we did see some improvement in unit velocity. That’s a good thing in the long run is that when consumers can stretch their budget across more things that they want to buy and not have it tied up in any high prices.
That’s a good thing. But as Brian talked about the inflation on these categories over the last several years, especially in Food, Household Essentials even pets and baby is meaningful. And that’s going to take a while to overcome.
Brian Cornell: Operator, we’ve got time for two more questions today.
