Retailers see payoff from tougher return rules

02 Jan, 2006

Before bringing back that itchy, brown sweater or that not-quite-state-of-the-art laptop computer, consumers this year should check to see what returning it to the store will cost them.
While the boom in gift card sales has cut into the number of people who return unwanted holiday gifts, many unhappy gift recipients trying to make returns face a harder time.
On average, returned gifts reverse about 4 percent to 6 percent of holiday sales, according to the National Retail Federation, a retail industry trade group.
Retailers have toughened up their return policies in hopes of reducing their occurrence, said Britt Beemer, chief executive of consumer trend tracking firm America's Research Group, and the heavier hand is working.
Ten years ago about 38 percent of Americans returned an item, compared to just 14 percent, Beemer said.
Stricter return policies often include a so-called "restocking fee," which forces consumers trying to return opened items to pay about 15 percent of the item's price.
Retailers including Target Corp, Best Buy Co Inc, and Circuit City Stores Inc charge the fees on items such as computers, projectors, camcorders, digital cameras, radar detectors, GPS or navigation devices and in-car video systems.
Best Buy charges a 25 percent fee on special-order items, including appliances. The fees apply unless the item is defective or damaged, the customer receives the wrong item, or the fee is prohibited by law.

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