The COVID-19 pandemic has had, and in the future may have, a significant impact on our business, financial condition, and results of operations. Various restrictions were issued worldwide since the start of the COVID-19 pandemic, including limitations on business operations. During the first major peak of the COVID-19 outbreak in fiscal 2021, all of our stores, online businesses and distribution centers were temporarily closed, during which time we were unable to generate sales, though we continued to incur expenses. During that time, we also implemented new procedures in our operations, including enhanced cleaning protocols, occupancy limitations, and additional health and safety protocols that resulted in additional payroll and continued or increased expenses primarily during fiscal 2021 and fiscal 2022, while potentially impacting sales opportunities. Many of our stores have had, and in the future may again have, additional temporary closures, and many of our stores have been, and may again in the future be, subject to additional restrictions that adversely impact customer traffic and sales opportunities. In addition, market conditions and the impact of the pandemic on the global economy and global supply chain have impacted and may continue to impact the financial viability or business operations of some of our suppliers and transportation or logistics providers, which has interrupted and increased costs related to, and may in the future interrupt and further increase costs related to, our supply chain, and could require additional changes to our operations.
The extent of any impact on our operations from the COVID-19 pandemic in a post-pandemic epidemic or endemic phase will depend in part on future developments that are difficult to predict, including the severity and spread of the virus and its variants. It also remains difficult to predict with certainty the ongoing impact of COVID-19 on the broader economy and whether consumer and Associate behavior may change permanently. Levels of our customers’ spending at our stores and consumer discretionary spending more generally may continue to be impacted by the pandemic and may be impacted by a post-pandemic epidemic or endemic phase and its effects on the economy. For example, social distancing, telecommunicating and reductions in travel became more typical in response to the pandemic and partially replaced past patterns. These conditions could have a continuing impact on consumer spending, the way our Associates work, or our company culture and could have adverse effects on our business, financial condition and results of operations.