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Spring 2016

53

this issue with a completely different

philosophy, or so it would seem. Larger

stores, in general, adopt the approach

that “If the customer isn’t happy, they

probably aren’t coming back.” They also

seem to allow the customer a longer

period of time in which to make a deci-

sion on the merchandise. Thirty days

appears to be the norm.

Other discoveries from my unsci-

entific poll were that final sale items

were not returnable. That seems

reas nable to me, unless the product

is defective, in which case it should

become a vendor issue. Most retail-

ers responded that any returns had

to have the sales receipt and could

not show any signs of wear. Again,

larger volume retailers are a bit more

lenient here. One store, in particular,

actually advertises that customers can

exchange footwear they have worn if

the pair isn’t working for them within

30 days. A liberal policy such as that

takes away any fear a customer may

have regarding the purchase.

Might a case be made that larger

volume stores became that way over

time because, among other things, they

were willing to do what the custom r

wanted them to do? Next time you are

confronted with a return that seems

questionable, try asking the customer

what they would like you to do to make

them happy. If a store credit is going

to annoy a customer to the point of

creating hard feelings, is it really worth

it? To the stores that feel they must

keep the money “in the store,” it might

be time to rethink this approach. I con-

tend you keep more money in the store

in the long run by making the customer

happy. That may mean giving more

cash refunds.

Looking at returns from another

perspective, we might see that the

Return Rate by Category

Retail Category

Blended Return Rate

Apparel

10.5%

Auto parts

21%

Beauty

5.21%

Children’s apparel

9.88%

Department stores

14.05%

Footwear

9.56%

Hard goods

12.33%

Home improvement

11.35%

Housewares

12.29%

Sporting goods

9.25%

Women’s apparel

11.13%

Survey median

8%

Source: National Retail Federation

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