[ToyAddict]

Think of it as "opportunity cost." The space stores use for layaway could be used to store something they could sell NOW-ish, as opposed to something they store for you and sell in a few months.

It's like the customer is getting storage space rent-free for several months. Sure maybe it's only a square foot, or a few square feet like if you put a bicycle or something big on layaway. So the store isn't necessarily "losing" money on it, but they aren't making the most profitable use of their square footage. So they are losing the opportunity to make more money.