“Now commodity prices those price essentially weekly, and we will price those up or down on a weekly basis. But price levels in a number of our products have increased and been established over the past 3 years and embedded in that higher ticket is innovation... So we don’t see those deflating broadly as we work through this period of moderation.”

In context

“r in 2023. So inflation is still present in the average ticket. Chris Horvers: So as you look ahead, and how are you thinking about how much of a headwind that becomes over the year? And what should you incorporate in the guidance? And then related to that, transactions are sort of back to ‘19 levels, but in the first quarter, tickets still up 37% versus the first quarter of ‘19. I’m guessing maybe a third of that is same SKU. So just trying to put into context the risk around ticket in terms of disinflation and then also project size and trade down? Ted Decker: Right. Well, it’s something we clearly look at carefully. There certainly has been a lot of cumulative inflation in price in our average unit retail in our ticket but that is not something that we are expecting to broadly deflate. Now commodity prices those price essentially weekly, and we will price those up or down on a weekly basis. But price levels in a number of our products have increased and been established over the past 3 years and embedded in that higher ticket is innovation. So when you think of ticket, a lot of that is not just cost and price, it’s trading up to better product. When you think of battery-powered outdoor power equipment, what we’ve done in the paint department with better and better paints there is innovation and with innovation, it’s usually higher price points. So we don’t see those deflating broadly as we work through this period of moderation. Chris Horvers: I guess just in terms of – do you think – if you sort of look at the trend on project size, does that become – will that cause ticket to become negative over the years? Is that how you’re thinking about it? Ted Decker: I wouldn’t say over the years, certainly, right now, we are seeing two of the biggest factors on each of ticket and transaction is, as we said. We have specific discretionary items, best examples are things like a grill, a patio set, an appliance, those ten”