Additionally, their risk increases. If the shoes don't sell, their losses can get much larger. They need the potential to make more profit to offset this this

Additionally, their risk increases. If the shoes don't sell, their losses can get much larger. They need the potential to make more profit to offset this this potential for larger losses. It's kind of like asking why Sears needs to make $200 in profit selling a refrigerator but only $2 selling a t-shirt. Because that's just how it works...