Some retailers tighten return policies
— -- No, you're not imagining it: In the past two holiday seasons, retailers have imposed stricter return policies. Among those surveyed by the National Retail Federation, about 40% said they had tightened the rules covering what merchandise they'll take back, and under which conditions.
Keep that in mind if you're still dithering about whether to keep that hot pink sweater or iPod you got as a gift. Time might be running out to get an exchange, much less a refund. More retailers are limiting returns to no more than 90 days after purchase, and they're increasingly insisting on a receipt.
The heightened restrictions are a response to the rising costs and headaches associated with accepting used, outdated or possibly stolen goods, says Joe LaRocca, the retail federation's vice president of loss prevention. The federation says retailers expect nearly 10% of holiday returns to be fraudulent, up slightly from the previous year.
It estimates that return fraud will cost retailers $3.7 billion for the past holiday season, up from $3.5 billion in 2006. Such fraud includes items that are stolen, bought with stolen credit cards or used and returned as defective even though they aren't.
"At the same time, the retail world needs the consumer to be their happy customers," says Mark Doughton, CEO of Carolina Logistics Services, which handles returns for a number of grocery, drug and discount stores. (Many retailers outsource return processing to save time and money.)
Change is in the cards
Galanti's reasoning: "Every month, (the electronics industry) was coming out with newer, better, faster products at ever lower prices. We would get returns for TVs purchased a year earlier for $2,500, and (customers) could return a perfectly good item, find something a little better for $2,000 and walk out with a new TV and $500 cash."
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