Bill Kirk: Got it. And so I had a follow-up also on the invoice factoring. You’re doing it within the proceeds go to pay down debt, but it’s happening, I think, right around the leverage ratio that put — would put a little restrictions on you? So, does the invoice factory have anything to do with those — getting those covenant restrictions out of the way, getting that leverage down quickly? Or is it as you kind of said more cost of capital play?
John Howard: It’s more of a cost of capital play. From our perspective, the ability to monetize those and get that lowest cost of capital for us just that economic value for UNFI and as shareholders is the primary focus.
Bill Kirk: Okay. So it’s not we needed a lower leverage ratios really quickly even quicker than the inventory would turn. Okay. Thank you.
John Howard: That is correct.
Operator: Our next question comes from Eric Larson with Seaport Research Partners.
Eric Larson: So I just want to focus a little bit on retail. Your sales were up a little bit less than, I think, 2% in the quarter. And it just seems that given the inflation that we have in the industry, that number should have been a little higher. Is there something with the retail side? I know it’s not a big part of your business, but I would have expected revenue to be a little stronger there. Can you have some comments on that?
Sandy Douglas: Sure. I mean our retail business performed in line with our expectations in the quarter. I think one of the things to keep in mind is that our retail business is largely concentrated in one market, which is Minneapolis, St. Paul. And we are the market leader there, but it’s a very competitive market, but we’re excited with the plans we have for our brand. We’ll be opening a couple of new stores and the future, we think, is bright. The customer response to some of the new programs we have there has been positive. So, I would view that as a continuing profitable growth story, and we have positive expectations for both Cub and the Shoppers in the Mid-Atlantic.
Eric Larson: Yes. And so on the shoppers on the Shoppers commentary, I think John said that you reacquired three Shopper stores and reopened them, I think it was actually dilutive a little bit to your EBITDA in the quarter. I’m assuming that’s just like a one-time — this doesn’t signal a change in strategy of how you want to approach retail. I’m guessing. So, I’m curious as to the reacquisition of those three Shopper stores.
Sandy Douglas: Sure. Let me comment on the strategy, and then I’ll let John confirm your question on EBITDA. But no, our strategy for retail hasn’t changed. We are optimizing it that translates to driving profitable growth and optimizing the profitability. What we saw was an opportunity to reacquire three stores that were — we saw a growth opportunity and then we decided to act upon it. But our strategy for optimizing retail for profitability and also as a learning lab for our business has not changed at all. John, do you want to comment about the EBITDA.
John Howard: Yes. No, absolutely. And what you’re suggesting, Eric, exactly right. Those stores came right back in towards the end of Q3, we had to incur some of the start-up costs just to get them back into the appropriate condition to open them up before the holidays, so it is, from a dollar or a rate perspective, it is dilutive just to incur those costs right at the end of the period.
Eric Larson: Okay. Thanks guys. Appreciate the commentary.
Sandy Douglas: Appreciate. Thanks Eric.
Operator: Our next question comes from Kelly Bania with BMO Capital.
Kelly Bania: Good morning. Thanks for taking our questions. Sandy, I wanted to just go back to the discussion of volume and inflation. I think you cited a volume figure of down 3%. Just wondering if you could help us unpack how Key Food is tracking relative to your expectations and maybe impacting that number? I’m just trying to kind of map to an underlying volume figure, and just as you look at volumes, also just some more color about the categories that are working or that are declining just a little deeper dive on the volumes here.
Sandy Douglas: Sure Kelly. As you know, we don’t comment about individual customers. But the way I try to frame the minus 3% is obviously the consumers reacting to significantly high prices, and that’s happening across the market. And so there’s some negative elasticity there. Our system, if you think about all 32,000-plus outlets are actually when you add them all together, performing in line with the market that includes the big box retailers and the cloud stores, et cetera. As far as expected performance from past customer acquisitions, they’re in line. Our customer file is growing and it’s healthy. And in fact, as we mentioned earlier, we have some new growth on tap for the second half of the year. I think one thing I’d like to digress on for just a second and then see if you have a follow-up is that the reason why the customer file and gaining new customers and serving existing customers is so important, is that as we drive its growth, obviously, we get sales and profit growth out of it.
