Return fraud is a serious problem for retailers who will lose an estimated $3.48 billion this holiday season, according to the National Retail Federation. That is actually a bit lower from last year's $3.73 billion lost to return fraud during the holiday season. Annually for 2011, return fraud will cost retailers a whopping $14.37 billion. In response, some retailers are tightening their return policies in an effort to reduce theft. Last year Consumer Reports estimated that one in five Americans planned to return a gift after Christmas. For honest shoppers, strict return policies can create major holiday headaches.
Always Include a Gift Receipt
The Experience: Unfortunately, Debbie Lauren didn't have a receipt when she tried to make a return to The Ralph Lauren company store in Manhattan. Despite her last name, she didn't get any special treatment when trying to return a glass vase. "They asked if I had a receipt. I said I didn't and that it was a gift," she recalls. "They told me they would only accept the return if I had the receipt." Of course Debbie didn't feel this was an option because asking the gift giver for the receipt seems rather tacky. The store would not budge, even though she says the vase was in the original box. Debbie wrote a letter of complaint to the corporate office, but didn't receive a response. "Since that time, I haven't spent one cent on a Lauren product. Nor will I."
The Takeaway: Even though you may pride yourself as a wonderful gift giver, be courteous and include a gift receipt in with your gifts. According to the NRF, six in ten retailers now require customers who are returning items without a receipt to show their identification. Even if you have a receipt, one in ten stores still require you to show your ID. And obviously there are some retailers who won't even allow a return without a receipt.
Be Open to Different Return Options
The Experience: Years ago author Shel Horowitz tried to return a wedding gift. "One of the gifts we received was a hideous thing--somewhere between a vase and a beer stein--purchased at Fortunoff for probably quite a bit of money," says Horowitz. "So the next time we went to New York, we brought it with us, and subwayed into Manhattan to make the return." But once they reached the store a clerk had different plans in mind explaining that the beer stein vase would need to go back to the location where it was purchased. Unfortunately for Horowitz that was on Long Island. "It would have been a half-a-day excursion just to get rid of the silly thing," he says. So he and his new bride left the strange gift sitting on the counter. "The clerk's flabbergasted expression was almost worth not
getting the money." They've never been back to Fortunoff and often share the story at dinner parties and social events. "It is the only example I've ever encountered of a chain demanding return of a gift at the location where it was purchased," he says. "The company established itself forever in my mind as extremely non-customer centric. I don't do businesses with companies that act like that, if I have any choice. And I don't think I'm the only consumer with a long memory."
The Takeaway: Stay cool. Even though you may be boiling inside, keeping a level head will help you to resolve your complaint more easily. If you're not happy with the options you are given, find out if there are others. Perhaps you could exchange the item rather than getting a refund. Or, at least you could put it on eBay and recoup some of the money.
Ask for the Manager
The Nightmare: Elaine Bloom's gift return nightmare came after her brother in California sent her a sweater that didn't fit her tastes. The birthday gift still had the tags attached including one that said Nordstrom. She thanked her brother for the gesture, but decided to return it in exchange for something that suited her sense of style. But when she got to her local Nordstrom they insisted it was not their sweater. "I kept saying it came from California and maybe they carried some different lines. She kept saying to me 'take this back where you got it,' like I was trying to pull something shady by buying something somewhere else and returning it to Nordstrom," explains Elaine. Then the employee cut off the Nordstrom tag and refused to give it back. "So I was stuck with the sweater," says Elaine. "In retrospect I should have asked to see the manager of the store but I was too upset to think of that at the time."
The Takeaway: If you're not happy with the service you're receiving ask for a manager. If you're still not happy with what the manager is telling you, try reaching out to the corporate office either through a written letter, email or even social media.
This holiday season if you've got a return to make, review the company's policy online before taking the time to venture out to the store. Make sure you meet the grace period for returning items, but try to wait at least a week or two until after the holiday return rush.
