I would guess that it is all about retail space. Since so many of the Festool stuff has been hard to get lately, they are not willing to "waste" the space to carry a brand that has limited availability?
All of the places that I have been in have a dedicated area for the whole line, rather than a more scattered approach of hardware store tool departments. In those types of stores, they have drills in one place, jig saws in another, circular saws in another, all brands in the same area/shelf. Grouped by type rather than by brand. I have never seen Festool mixed like that, always in its own space.
I have always wondered about margins too? Festool may be more expensive, but if the profit percentage is not there? Maybe they can make more with higher volume of cheaper tools? especially since they can actually get the cheaper stuff to stock the shelves.