7-11 Japan offered its stores a choice from a set of 5,000 SKU’s (stock keeping units). Each store carried on average about 3,000 SKU’s depending upon the local customer demand. 7-11 emphasized regional merchandizing to cater precisely to local preferences. Each store carried food items, beverages, magazines, and consumer items such as soaps, detergents, etc. Sales across product categories from 2002 to 2004 are given in Exhibit 3.