Dana Telsey: Thank you very much for all the detail on the business strategy going forward. When Maegan spoke about Amazon and the penetration, the success that you’re having there, how do you think of the penetration of digital moving forward? Does it get beyond the 50% that you mentioned? And with the store closures that you have that increased marketing spend how is — how do you see it divided whether it’s different channels that you’re seeing become more activated as you’re spending the dollars on the marketing, what do you see is what that balance will be with that percentage of sale going to marketing? And then just lastly, Jane, as you think about the different brands, is there any that you’re seeing that could be outsized as we move forward or the different puts and takes as you think of that customer base?
Jane Elfers: Sure. I think from a digital penetration, we’ve talked extensively about us being approximately 50% right now, which was our original goal when we set out our strategic transformation, and we’re able to accelerate it by approximately 5 years due to the pandemic. So that’s why we talk about having achieved that original goal by the end of ’22. I think we’ve also talked pretty extensively about reaching a 60% digital penetration by the end of full year ’24. And today, when we talked about, we introduced a little bit of forward-looking 2025, we think that we’ll be over 60% digital penetration. So we continue to see digital as the core of our strategy. It certainly is where our Millennial customer wants to be and where the Gen Z consumer behind her is, so that will continue to be our focus.
We talked about an optimized fleet. We talked about closing 100 more stores. We feel that will be substantially the end of our fleet optimization strategy. For now, we feel that, that will be the right stores, in the right trade areas that over-index and omnichannel capabilities and certainly are the ones that service the omnichannel needs of our Millennial and Gen Z customers. So we feel good about hitting that 500 number — approximately 500 number by the end of 2023. From a marketing spend point of view, we’ve been pretty upfront and transparent about us being significantly underfunded in marketing in the past. I think with all the work that Maegan and her team has done on transforming our marketing area and the extraordinarily strong results we saw in the back half of ’22 when she started to activate it on brand acquisition, awareness, social media dominance, she was pretty lengthy in her commentary on describing how strong we feel about it.
We will be making investments — increased investments in 2023 and beyond in marketing. And I’ll turn it over to Maegan to talk about it a little bit by brand. We certainly learned a ton from Amazon as we do a pretty large marketing spend with that channel. And then I think going forward, to answer your question about the brands and the penetration, Gymboree is on a great trajectory. We introduced today that we think by end of full year ’25 that we’ll be at $140 million, which was our initial projection. We’re all pretty aware of the fact that we’ve launched Gymboree into pandemic and kind of lost 2 years there, as it’s a very highly occasioned brand and you need occasions and you need families to get together to make that brand work around the key holidays.
