Seth Sigman: Hi, good morning, everyone. I wanted to follow up on the value proposition that Walmart offers today. So private label seems to have a lot of momentum and is likely one of the factors that’s helping drive market share here. How are you managing private label differently than in the past? And how do you think that plays into the competitive gap here more from a basket-level perspective? And then ultimately, do you think that this advantage is sustainable even in an environment where maybe inflation moderates or prices decline? Love some perspective on that. Thank you.
Doug McMillon: It’s important for us to have a wide range of assortment for a broad section of customers, where all over the country, situations are different for different customers. And whatever the situation is for any particular customer, then that’s what we want to be there for. We’ve talked about this before. We don’t set targets or percentages of the business that we expect private label to grow to or be a part of. It’s important that we have values on brands, on branded items. It’s important that we have values and quality across the portfolio in e-commerce and stores. And in the last few quarters, customers have chosen the private brands at Walmart at an accelerated pace. I think there are a lot of reasons for that. But if our quality and price were in the position that it needs to be, then they wouldn’t repeat. So we’ll continue to stay focused on quality and value there.
Kathryn McLay: Yes. And I think from a Member’s Mark perspective, we have seen our metrics around value for money and NPS and quality, our Member’s Mark has continued to improve. And we’re seeing members choose it because of the quality of the item, because of innovation into those products and also because the great value that they get out of the Member’s Mark, price/quality combination.
Doug McMillon: We’re seeing leverage across markets with private brands, too, whether it’s Great Value or Member’s Mark.
Judith McKenna: Yes, Member’s Market, of course, is available in our Sam’s Clubs globally, around the world but also many other items as well. And I know you were in Chile recently, Doug, and they have a phenomenal international foods aisle, which is showing incredible growth, many of which are private brands, which are imported from around the world, from the rest of the Walmart world.
Doug McMillon: When I was in Canada, they made me Great Value tomato ketchup potato chips. I’m out on that. But that’s not – I’m sure Canadians love it, but that’s one private brand item that I’m not a fan of.
John David Rainey: You made some of us eat that.
Doug McMillon: John David liked him better than I did.
Operator: The next question is from the line of Corey Tarlowe with Jefferies. Please proceed your question.
Corey Tarlowe: Hi, good morning and thank you for taking my question. I was wondering if we could just take a step back and assess the health of the overall customer maybe in the U.S. and also perhaps internationally versus the first quarter and into the second quarter? And how you’re thinking about the general health of the customer throughout the remainder of this year? And then just secondarily, on shrink, what are you seeing as it relates to shrink? And what are you expecting ahead as we think about that particular dynamic?
Doug McMillon: From an enterprise point of view, just on the customer and member first, and others can chime in on that, I feel like that our position is one where if things do get tougher, they’re going to increasingly look for value and we’re going to be able to grow the top line. Hopefully, things do get better. And there are a lot of conflicting data points, but you guys see the same data that we do. There are reasons to be optimistic in areas like employment and the wage inflation that’s happened. And there are other reasons to be concerned – as consumer balance sheets potentially weaken over time. But again, we like our position. We like it in terms of the breadth of product categories we can sell whatever people want to buy.
