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The manager of a hardware store plans to stop stocking the twenty slowest-selling items so that the shelf space they occupy can be given over to fast-selling ones, expecting the store's total sales to rise. Which of the following, if true, most seriously undermines the plan?

Competition practiceLogical / Critical
  • AThe twenty items together take up about a tenth of the store's shelf space
  • BFast-selling items have to be restocked more often than slow-selling ones
  • CSeveral of the slow-selling items are ones customers come to this store for because no shop nearby stocks them, and those customers buy a good deal else while they are in the store
  • DThe store has traded in the same market for twelve years

Step-by-Step Solution

The plan values each item only by what it sells of itself. If some slow movers are the reason certain customers enter the store at all, dropping them costs the store not merely those few sales but the whole basket those visits produce, so total sales can fall rather than rise. The share of shelf space, restocking frequency and the store's age say nothing about why customers walk in.
Answer: C) Several of the slow-selling items are ones customers come to this store for because no shop nearby stocks them, and those customers buy a good deal else while they are in the store

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