Retailers in New York City are increasingly choosing to sell their products at a premium rather than a discount, which is likely to have an impact on the retail industry.
“Retailers have decided that it is cheaper to have the products sold for a premium,” said David Jorgensen, chief executive of the National Retail Federation.
“That means they are not selling to their customers in the usual way.”
The high price of branded products was highlighted last month by the retail giant Target announcing that it was closing a store in New Jersey after a lawsuit from an employee over his treatment by the company.
“It’s a tough time for the retail community,” Jorgenson said.
While Target has since closed, Jorgensson believes that the situation is likely not to be the last of its kind.
Last year, a number of major retailers, including Gap and Bloomingdale’s, announced that they were closing their doors.
Jorgensen said that it could be a long time before retailers can get used to the fact that a high price was being charged for products.
“The fact that you can get something for a dollar or two is not going to stop you from doing that.
There is going to be more competition.”