Retailers have been struggling to find new revenue streams after a major online retailer was acquired by Amazon.com for $1.4 billion.
In a letter to the Securities and Exchange Commission (SEC), Brown’s, which sells everything from kitchen appliances to home theater systems, said it has discovered more than $1bn worth of lost products since it opened its first retail store in January.
“These are not isolated incidents,” it wrote in a letter obtained by the New York Post.
“Our investigation reveals that a large number of our customers have been unable to access the products they purchased through our online store, and we have been able to find the missing items only because we were unable to locate them in-store.”
The retailer has not provided any further information.
Brown’s is the largest retailer in the United States, with more than 200 stores across the country.
The company said it will continue to review its operations and improve its online store to provide customers with the best possible shopping experience.
The letter from Brown’s is among hundreds filed with the SEC in a series of lawsuits filed against online retailers, including Amazon, to help recover stolen consumer data.
It comes as the Justice Department has also launched a fraud investigation into Amazon.
The department is looking into whether the online retailer is acting illegally.