So next year, we have multiple launch plans that will have launches; 4 to 5 major launches throughout the year of new product categories that really do drive frequency with that core customer. And then on the new customer piece, it’s — as we mentioned in the remarks, it’s primarily driven through store acquisition. That’s the healthiest piece of that. But we are also — we also have new customer acquisitions that will be driven through a digital campaign next year as well. So happy with the retention of all building frequency among those customers and are focused on reactivation in the short term. But next year, we’ll continue with a full 360-degree approach to building that customer file and maintaining the quality of that customer. On the product conversion, I think I spoke a little bit to that in terms of new product, yes, Studio works very well for us.
It continues to work well. I’m very happy with the product that the team delivered for holiday in terms of a balance between Cozi and then really responded to the correct timing. And I think our stores look, I think they look very, very good and have — and our customers actually have been asking us if we remodeled. And I think that is a great comment on the quality of the merchandising assortment and how that was presented to the customer. So we are seeing — as we are bringing in relevant fashion products for the season and at the right level and presenting it appropriately that the customer response among not just our existing customers, but among new customers is positive. And so we’re excited and think that that’s a great indicator of some of the things that could be in store for us next year from a product perspective.
The inflation channel question, one of the things that we’ve been talking about is that in the first several quarters of this year that the inflationary impact really was most prominent in our lower household income customers. And for the first time in the third quarter, it impacted all categories of the customer. So they had been immune. The upper income levels have been immune up until the end of third quarter and we did see that for the first time impacting that level.
Operator: Our next question is from Lorraine Hutchinson with Bank of America. Please proceed with your question.
Unidentified Analyst: This is on for Lorraine Hutchinson. Thanks for taking our question. I had a quick follow-up on Oliver’s question. Can you give us a more detailed breakdown of your inventory composition and just percentages of inventory in each category, whether it’s basics evergreens versus fashion versus things you need to clear? And then secondly, on the upgrade updated development process you mentioned, just now, how much are you leaving open to chase in 1Q versus what you normally would leave open to chase?
Tim Martin: Yes. I’ll take the first portion. We don’t break out the total detail level of inventory both. As Lisa mentioned, what we’ve seen were the deepest in right now are things that are mostly basics and evergreen categories that we have the time to work through. We are very clean on seasonal and to liability product. So we’re confident that we’re going to continue to maintain that and that’s what we’re very much focused on. I’ll turn it to you. Do you want to answer the question?
Lisa Harper: On the development process, we are leaving — I’m not going to go into percentages. But we’re leaving more open on a liquid basis in order to test and react. We also are testing products in the third quarter with the idea of reordering that product into subsequent quarters. So it’s — there’s a quick turn aspect of the liquidity. And then there’s also a test and then holding liquidity later as we get the results of those tests to buy into those specific categories. So it’s a multipronged approach. I’m comfortable with the amount that we have opened at this point. And our sourcing team is working diligently and finding opportunities for us to be more efficient and react more quickly to some of these wins.
