Gary Millerchip: Yes. I think I would say we try to guide to what we think is a more normalized year in 2023, Ken. Part of it, I would say we probably are being a little bit conservative because of — we want to see how this unwind of COVID exactly plays out. A couple of examples would be if inflation does remain at high levels, obviously, that could impact inventory but also as we kind of unwind accruals on things like incentive payments, assuming we’re more going to be more like an on-target incentive payment than significantly higher than on-target payout, those things can create some 1-year adjustments, too. So there’s a few areas that just kind of create a few wrinkles. And candidly, we’re trying to be conservative to make sure we can see the flow-through of the catch-up from 2022 as well.
So we feel we tried — what we tried to do is take a conservative view of a normalized environment, but there is still some, I would say, unwinding that we wanted to make sure we understood as we reported out in 2023.
William McMullen: And our incentive plan is designed — our long-term incentive plan is designed such that we are incentivized to do better than the guidance we’ve given.
Gary Millerchip: Yes, I think it’d be fair to say our internal goal would be higher than what we shared because we do believe it’s one opportunity, but we thought it was appropriate to be conservative in the circumstances.
Operator: Our next question comes from Rupesh Parikh from Oppenheimer.
Rupesh Parikh: Also congrats on a great quarter. So I just want to touch on market share. Just curious if you look at Kroger’s performance in Q4, I’m not even sure if you have the full year data, just curious how your market share is performing versus your expectations? Because if I recall last quarter, you were starting to see improvement in the market share.
William McMullen: Yes. We’re continuing to see improvement and if you look at internally, if you were at one of our meetings, you’d hear us continually focus on how to even continue to improve. Our objective and expectations of ourselves is to grow market share. And if you look at the higher-income shopper, in those customer segments, we did a great job gaining share in Fresh. We’re doing a good job of gaining share. And I would say we’re pleased with the progress, but we still are not satisfied.
Rupesh Parikh: Okay. Great. And then maybe just one quick follow-up question. Just quarter-to-date. Any color you can provide in terms of what you’re seeing just throughout the quarter?
William McMullen: Yes. As you know, we always get it. We always provide some insight. If you look so far, we’re consistent with our expectations and Gary outlined a little bit about what we would expect quarterly between quarters to be. If you look at the first period, the first 4 weeks of the year, it’s trending a little bit better than but both of those were lower than the fourth quarter actual. And I want to remind you that ESI — Express Scripts, I should say, is about 1.5%. And then I always hate to talk about weather, but weather was more friendly to us a year ago than it is this year and I don’t ever want to use weather as an excuse, but it is an insight if you look at the current trends, but the key point is we are trending where we expect it to be.
