McCaulo’s, which has a store in Georgetown, Md., is losing $4.4 million worth of sales over the past five years.
The store’s sales are down by about 3 percent each year, and it has lost about $200 million since it opened in 2009, according to a report by the Federal Trade Commission.
The Washington Times reports that the stores’ sales fell by 3 percent annually over the last five years, and that the store is struggling to maintain its profitability.
The report says the store lost $3.3 million in its first five years of operation, and $4,927,000 in the past two years.
The report said the store’s losses are due in part to an aggressive marketing campaign aimed at attracting customers.
The FTC report also said the McCausees’ store has a high turnover rate, and has a higher percentage of customers who move out.
It said the company needs to improve its customer service and the store should focus more on selling directly to consumers.
Last year, the FTC found that the McCauses’ store had been a “battleground for retailers to sell their products and services to the public,” and that they did not have a strong customer service or good product selection.
The Federal Trade Commision is asking the company to explain the reasons behind the stores troubles.