Retail department stores like Lohmann’s have long been considered the best in the country, but they’re also the most expensive.
Now, a new study suggests they’re on the way out.
In its study of the costs of nearly 1,200 department stores nationwide, the Center for Budget and Policy Priorities found that many of them were oversupplied with goods, like clothing, electronics, household goods and appliances, and that they were overstocking shelves and overstacking departments.
The study found that a majority of the retailers surveyed were overcharging customers for items, and most of them did not have the budget to reduce prices.
“Retail department retailers are not the only ones facing pressure to cut costs.
Homecare, healthcare, food services and the elderly are also under pressure to reduce the prices they charge,” said David J. Bernstein, the study’s author.
The report also found that more than 80 percent of department stores surveyed had overspent in recent years, and about one-third had oversupply.
Many retailers said they were looking to cut prices or move away from expensive products.
Lohman’s said in a statement that it “believes that our strategy to invest in new stores is not sustainable and we are exploring other options.”
“We are disappointed that more stores are losing inventory due to overspending and are working closely with our partners to identify the most cost-effective way to move forward,” it said.
Retailers are facing a challenge in shrinking their margins.
They can’t afford to increase prices without raising prices, so they tend to cut products and cut prices to attract shoppers.
But even though many of the department stores in the study had overpriced products, some were still selling them, Bernstein said.
“This suggests that consumers are willing to pay more for cheaper products.
But the problem is that they’re not getting what they want,” he said.