Agree.

However, in this scenario every neighbourhood only has 2 STORES - and each CUSTOMER only shops at one of these STORES.

Then, if you made HATS, the only way to sell HATS is to get them on the shelves of both those stores.

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This is Australia: two major supermarkets - so the only way to sell a lot of your product is to submit to the terms of Coles or Woolworths.