[MrFoof]

>Potentially it's items that move very very low volume but provide significant value by being available?

That doesn't matter, and exactly why corporate brought it up. Again, opportunity cost.

I asked my nearest 7-Eleven manager (I never go to convenience stores, so I just went in to the closest one) about how many customers he gets a month, and he said about 8,000. How many SKUs? About 2500. So for 40% of his SKUs, of the 8000 customers that walk in, 1 of 8000 is willing to buy a specific one of those 1000 items (at that elevated price) from that store. That's 1000 SKUs that could be at least partially replaced with something with far better sell-through. Shelf space isn't free. Backroom space isn't free. That's dedicated square footage, he's paying a lease on every single month, forever, for stuff that doesn't move.

The guy isn't running a convenience store out of the goodness of his heart. There's a supermarket 3 blocks away selling the same items for far less money, so it's not like he's selling something you can't get just a 3-minute further walk (or 1-minute drive) away.

I asked him about slow selling items. "Oh, you saw the video too?!" He was fully onboard with corporate support to not just get much better sell-through (and ergo, revenue), but having a reason for more people to come into the store, especially on a regular basis, and not simply getting things because, "they happen to already be here."

This location in particular WASN'T with a service station out front (inner city location). So for the manager, a way to get more regular customers, that are coming in to buy things they want -- possibly if they can't get it as easily (or at all) nearby -- is a HUGE potential win for him. That might help him get hundreds more customers every month, which might buy other things as well.