Gerry Smith: I think that’s what Anthony you mentioned earlier, and I also mentioned it’s a relentless focus on low-cost model, operational excellence. I mean, Michael, we started these reviews. We’ve been digging in deep myself, Anthony, John and Kevin, all the teams and we’re making substantial progress. Karen Miller, Eric, me and the teams are driving COGS improvements across the business, working our partners. Our supply chain costs have dramatically improved this year as well. So we’re really setting ourselves up really nice tailwinds in Q3 and Q4. I think structurally, we’re going to be in a way better position from a 2024 perspective as well as our finance teams have done a great job with working with Kevin’s team and Dave’s team driving our pricing models to make sure we’re — as Anthony said earlier, we don’t want to just price bad deals either.
So Adam and Mike Keller’s done a fantastic job being an overlay of that. And so I’m very optimistic on the gross margin pieces. And I think that’s going to be a real differentiator for us compared to other people in the industry.
Anthony Scaglione: Yes. And the only thing I would add, Michael, is obviously, mix plays a big part of our gross margin. So if you think about our prepared remarks being down in tech being down in certain categories that have a lower margin. So as you look at the mix, mixing into core, mixing into other higher margin product will have that impact. So some of this is going to be the mix driving the overall GP.
Michael Lasser: Okay. Thank you very much.
Anthony Scaglione: Thanks, Michael.
Operator: Our last question comes from Joe Gomes with Noble Capital.
Joe Gomes: Good morning. Thanks for taking my questions.
Anthony Scaglione: Hi, Joe. Good morning. Nice to meet you.
Joe Gomes: Same here. So I just wanted to talk a little bit about the adjacencies in the OVP business. Just trying to get a better handle on, what you think the long-term growth rate for that subsegment of products should be for the ODP business segment?
Anthony Scaglione: Yes. I’ll talk about structural Anthony give specifics. I mean, if I look at the — close to the core piece, our cleaning and breakroom business, I absolutely believe that’s the business going to grow substantially in the future. I mean it’s — I mean whether people are at work or not, people — you have to keep your buildings clean. We have a $700 million business today, which is a really big business on the wrong multiple, of course, and there needs to be a higher multiple, I got to get that in. Tim’s looking over at me to make sure I right on that. But the reality is that should be a high-growth business for us. Furniture and tech, obviously, tech is in a tough place right now across all tech, but that will recover in the future.
From a furniture perspective and the other one is our copy and print business is a really solid business with really high margins. Is this something we just got to continue to focus on growing. And we’re going to look at some other categories as well, whether it’s safety and some other areas we can start pushing that business across the line. But all those businesses should be growth businesses. Dave and Tom and Steve and Chris and Brian and team are doing a great job of driving that. But we’re also driving the core really well as well. But I mean, it’s — the goal of my mind is that needs to be over 50% of the business, that’s my sort of target internally. But that’s — as the core grows, we’ll keep taking that because it’s high-margin business.
It is higher margin business than some of the agents.
