Eli5 How do grocery stores around the world afford to be fully/half stocked in a product 24/7 simultaneously even in small towns where not everything’s bought?
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Fully stocked displays of product look more appealing to customers, making them more likely to get noticed and bought (psychology is a really big part of retail). Those additional sales make up for a bit of shrinkage due to product expiry. Also, having some additional stock helps ensure that you do not miss some sales due to shortages.
Sometimes the vendors require a certain amount of shelf display and prominence and to have a lot of stock as part of the agreement to sell their items. Sometimes they pay extra for it.
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