Absolutely. Still, the low margin percentage surprised me, and it’s probably much higher for upscale stores, and smaller merchants.
Remember that the low margin % also has to be examined in the context of how quickly a product is sold once it is added to a retailer’s inventory. A 1%-2% margin on a piece of apparel that spends no more than a few weeks on a rack is one thing, but that’s an abysmal return if you’re talking about a piano that may sit in a dealer’s inventory for months or years.