Grocery stores/gas stations are like real estate – all these suppliers are competing for a limited amount of space to put their products in. Suppliers will offer whatever they can (including favors such as stocking shelves) to get more “real-estate” (via displays or extra shelving). More real-estate on shelves/displays means more products/bigger variety of products being put into the store, which means more sales for the supplier. Since one supplier is already offering these favors, everyone else now has to do the same in order to stay on equal footing.
Latest Answers