Each retailer is unable to earn an adequate return on its investment when an area is overstored.

Question

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When an area is overstored, there are too many retailers competing in the same market. This can lead to price wars and lower profit margins, making it difficult for each retailer to earn an adequate return on their investment. As a result, retailers may struggle to attract customers and generate enough revenue to cover their expenses.

Each Retailer Is Unable to Earn an Adequate Return on Its