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January 2009 |
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'Tis the season for returns |
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Thursday, 28 December 2006 |
 Staff photo/ Annie Linder Shoppers stand in line to return items at the Wapakoneta Wal-Mart Supercenter on Bellefontaine Street Wednesday,
Retailers become more strict on exchange and return policies
By ANNIE LINDER
Staff Writer
With packages unwrapped, recipients of Christmas gifts go through the process of determining what gifts can be exchanged or returned — a similar step taken by retailers, a National Retail Federation spokeswoman says.
Retailers annually prepare for nearly 9 percent of holiday gifts to be returned, and many are taking a closer look at their exchange policies to cut back on return fraud — estimated to cost the industry as much as $3.5 billion this year
Kathy Grannis, spokeswoman for the National Retail Federation, said that in general, most retailers — approximately 70 percent — have not changed their return policy this year because they feel it is strict enough to effectively prevent loss without deterring loyal customers.
“They’re forced to strike that balance between the loyal shopper and those criminals that take advantage of retailers’ return policies during the holidays,” Grannis told the Wapakoneta Daily News in a telephone interview.
Criminals have typically done their homework when it comes to retail crime, Grannis said. They tend to research stores and their return policies in advance and formulate a plan they believe that can get away with, such as returning stolen merchandise or used items and printing counterfeit receipts.
In other instances, the crime can be more subtle, Grannis said.
One example is “wardrobing,” or purchasing an item with the intent of only wearing it for one night.
“A lot of people don’t consider wardrobing to be return fraud, but it is,” she said.
To combat these problems, many stores have created return policies that specifically address the issues.
At J.C. Penney, the return policy for formal wear states that consumers who return those items must have the tag “still intact, attached to the item and in the same conspicuous spot” as it was during the purchase. Other retailers, such as Circuit City, Sears and Best Buy, charge restocking fees — typically 15 percent of the sale price — for items that have already been opened. By law, those fees must be disclosed as part of the store’s return policy before a purchase is made.
Other large chain retailers, such as Wal-Mart, use software systems to track return. Store personnel can then track customers who repeatedly return merchandise. At the Wapakoneta Wal-Mart Supercenter, 1257 Bellefontaine St., like other Wal-Mart stores, greeters wait at the doors and scan the bar codes of merchandise before it is taken to the customer service desk.
Although smaller-scale stores and local shops often cannot afford more advanced security measures, one advantage they have versus chain retailers is an ability to mentally keep track regular customers, Grannis said.
At Dad’s Toy Shop, 123 W. Auglaize St., co-owner J.P. Metz said the return policy is consistent with what it has been in past years.
“They have to return (the items) with a receipt and have the original packaging,” Metz said. “Any of the remote-controlled vehicles can’t be used, and we give store credit for all returns.”
Metz said he believes the return process is easier than larger chain stores because the toy shop owners have a one-on-one relationship with their customers, many of whom are regulars.
“We really don’t get a lot of returns because most of our customers already know what they want, since we’re a specialty shop,” Metz said.
The same principle applies at the St. Marys Hobby Center, 111 W. Spring St., where store owner Larry Kramer said he “gladly takes returns and exchanges,” as he always has. The trading company, which operates within the same building, has an exchange policy that is good for 30 days after purchase.
Kramer, who has operated the store for 34 years, said that although he there are rare incidents where people try to take advantage of the policy, returns at his store are rare. Since theft has not been a major problem, he will continue to operate as he has in the past.
At Maurices, 1174 Indiana Ave., St. Marys, the store’s policy is consistent with its corporate headquarters and is similar to most clothing retailers, a store manager said.
Customers may return items at any time for cash back or merchandise credit, a store manager said. With a receipt, returned items are refunded at the original purchase price, plus applicable sales tax, in the original method of payment. Without a receipt, returned items reflect the lowest “on sale” price within the last 30 days.
Regardless of where they shop, consumers can avoid needless stress and arguments with customer service representatives by being prepared and knowing the store’s return policy in advance, which are usually listed on company Web sites, Grannis said.
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Last Updated ( Friday, 29 December 2006 )
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