It ranges in the mid-40% that we’re seeing. And we have two formats there. We have the Sam’s Club format and we have the hypermarket format. And what’s interesting is both formats have got positive traffic and both are gaining market share. And I think the reason for that is that back to this combination of value and quality and trust that we’re able to provide. Sam’s Club, in particular, had a really strong quarter again, and we opened a couple of new clubs. We now have 45 clubs across China, and they’re really combining great items at great value. And they’re seeing an interesting trend in higher penetration of very high-ticket items in China too. In the hypers, I got a chance to visit some of our re-modeled new version hypermarkets. You’ve heard me talk a couple of times about the transformation in hypers that’s ongoing, and I was really impressed with the thoughtful way in which the teams there have reduced assortment, brightened and freshened stores, increased signage, helps customers navigate not only through great fresh departments, but also made the general merchandise shopping much simpler.
So, I think you have two formats there, both of which are leading in the segments in which they operate and that’s helping us win customers. And our associates, I will just say there are doing a fantastic job, and it was just great to see them after such a long time.
Operator: Our next question is from the line of Paul Lejuez with Citi. Please proceed with your question.
Paul Lejuez: Hi, thanks, guys. Curious within food and grocery, how you would characterize the current landscape from a promotional perspective relative to last year in history? And how are you thinking about price investment as a tool to gain further market share, just given the changes in inflation expectations? Thanks.
John Furner: Compared to a year ago, Paul, certainly, inflation is at a lower rate than what it was. It’s been relatively stubborn in dry grocery more than other places over the course of the year. Price gaps are something that we spend a lot of time on each and every week. We start Monday talking about trading and what’s happening in the market, price is always one of the major topics. We would assure that our value are right, and we are pleased with where the value is today. The grocery business is gaining share. Certainly, we’re going to watch the market. As I said a moment ago, we do have a number of rollbacks that are effective in food. Our rollback count in food is higher than last year. It is lower in general merchandise than a year ago, but a reminder that last year we were clearing a lot of inventory that had been backlog, so the general merchandise rollbacks which are very effective are more choiceful, and I think reflective of the seasons that people are in.
So, our job from here is to ensure that we’re ready for people that are getting back to school all across the country in the next couple of weeks, colleges, we have tailgating season coming up Labor Day, and we’re right into the holiday food season. I’d say, too, I felt promotions is the easy solution to inflation versus doing the hard work of working with your suppliers to walk back all the commodity and cost increases that kind of have been absorbed over the last 2 years. So there’s a lot of work in just tracking the cost of transportation. And then as that’s come down, working back with each supplier to have a look at what proportion of the cost is impacted by that and how do you roll that back. So I know in Sam’s, the team have a great big board.
They ring a cowbell every time we get a cost decrease. And you flow it on to the member. And I think that’s how we want to think about it versus thinking about how do we go out and do promotions.
