“The outperformance of the prior two years was that we didn't see that much sensitivity. The consumer, our customer was much more resilient sort of purchase through that elasticity curve if you will. What we are seeing now is some more sensitivity and we had almost an exact one-for-one offset in Q4. That's what we're expecting for 2023, that there is still inflation.”

In context

“r next question comes from the line of Scot Ciccarelli with Truist. Please proceed with your question. Scot Ciccarelli: Good morning, guys. So, can you please clarify your expectations for unit elasticity, if we were to start to see same – see inflation pressures ease? And then secondly, any common denominators in categories or geographies, where you're starting to see some of the incremental softness? Thanks. Ted Decker: Sure, Scot. I think, the last two years, we've had the same guidance that we're having this year, and that is that, whatever inflation is represented in our average unit retail in ticket, would be offset by transactions. So we started the year thinking about a balance of ticket and transaction, and that higher ticket driven by inflation would be offset with transactions. The outperformance of the prior two years was that we didn't see that much sensitivity. The consumer, our customer was much more resilient sort of purchase through that elasticity curve if you will. What we are seeing now is some more sensitivity and we had almost an exact one-for-one offset in Q4. That's what we're expecting for 2023, that there is still inflation. I mean, we are still in an inflationary environment, as we saw from CPI and PPI results last week. Although, it is abating and its abating more I would say in our industry, our costs on the table are much lower than they had been. Our wraparounds some price moves going into 2023 will be much lower than they had been in the prior two years. And so, while we're still expecting an offset in transactions, because the ticket won't be as high the negative transactions won't be as low, but still net to that flat guidance for 2023. Scot Ciccarelli: Okay. Thank you. And then, any common denominator in terms of category or geographies where you're seeing some of the incremental softness? Is it just big ticket, or is there... Ted Decker: Yeah, big ticket would be the ones that I called out before, t”