Retailers get tough with returns as fraud concerns grow
Consumers loaded down with ugly sweaters, snug-fitting pants and one too many copies of that DVD, are descending on stores this week and heading to the return counter.
Sometimes life is easy, sometimes not so simple.
"I waited in line for oh, a good 10 minutes, and then when I got to my turn, they wouldn't take my PJs back," said Marlene Whister, who was headed out of a Super Target in Fishers, Inc. "I'm not a happy camper."
Retailers this year, perhaps more than ever, are cracking down on returns.
Thirty-five percent of consumers say they will return at least one item after Christmas, according to a recent survey by BIGresearch. Almost 10 percent of those returns will be fraudulent this season, according to the National Retail Federation and that fraud will cost stores an estimated $3.7 billion.
That on top of what is expected to be the worst holiday sales season in five years, has prompted retailers to tighten up.
"Unfortunately, retailers must constantly balance the desire to take care of their customers with the undisputed fact that criminals are constantly looking to take advantage of return policies," said Joseph LaRocca, vice president of loss prevention for the retail group.
To combat bogus returns, many retailers have made policies stricter. They are requiring receipts, cutting back on the amount of time customers have to make returns, giving only store credit rather than cash and limiting the number of returns a consumer can make each year.
At Target, for example, customers can only make two returns every 12 months with their driver's license when without a receipt. If the returns are legitimate, that should be no problem, said Dan Aykroyd, executive team leader of guest experience at the Fishers Target.
"We make it as easy as possible for our customers to return," he said. "Any item purchased over $10 is automatically given a gift receipt."
Even with a gift receipt at JCPenney, returns must be made within 90 days of purchase and the refund is issued in the form of a gift card, no cash or credit.
Most consumers aren't annoyed by the return policies. More than 87 percent of shoppers say they find retailers' policies to be fair, according to the BIGresearch survey.
The Saks Fifth Avenue department store has implemented systems to identify merchandise that was purchased at Saks so legitimate returns are processed quickly for customers.
"This may also enable us to more accurately direct a customer elsewhere if the merchandise cannot be identified as having been purchased at Saks," said Carolyn Biggs, senior vice president.
Most return fraud comes in the form of stolen merchandise. But even noncriminal acts are considered fraud. For example, buying a dress, wearing it for the Christmas party and then returning it is fraud. So is trying to return an item to a store where it wasn't originally purchased.
"Fraud costs everyone money," said Frank Guglielmi, spokesman for Meijer.
Customers who try to return merchandise purchased at Meijer without a receipt are given store credit for the lowest sale price of the item. Most refunds can be made within 90 days of purchase, but on electronics, the discounter limits returns to 30 days.
Meijer's return policy is standard throughout the year, but some retailers actually relax their policy during the holidays.
Staples, for example, has extended its regular 14-day electronics and furniture return policy for items purchased between Nov. 23 and Dec. 24. Items may be returned until Jan. 6, or as the regular policy allows, whichever is later.
And believe it or not, people do return big items like office desks and televisions.
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