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SEATTLE
— Give a gift. Get a gift. Return a gift. It's a
Christmas tradition.
About one
of every five people expects to return a gift after the
holidays, according to a poll by Consumer Reports.
But at
the
Fireworks Gallery
gift shop at Westlake Center in downtown
Seattle
, returns were well under way even before Christmas, yet
another reminder of a difficult economy.
Manager
Kerry O'Neil
said at least 20 shoppers came into the store in the
past two weeks to return merchandise they had planned to
give as gifts but decided they could no longer afford.
"The
feedback I'm hearing is, 'Oh, I overspent,' or 'I didn't
realize how much it cost,'" O'Neil said. "They
get home and see five or maybe 20 bags on the counter
and go, 'Oh my gosh.'"
The good
news for cash-strapped shoppers is returning a gift
shouldn't be much tougher than in previous years. The
bad news? It also isn't likely to be much easier because
return fraud remains a concern.
Eight of
every 10 retailers have the same holiday-return policies
as 2008, according to the
National Retail Federation
. About 17 percent told the retail group they'll be
tougher, while 4 percent said they'll loosen their
rules.
The
retail federation estimates return fraud will cost
retailers
$2.7 billion
this holiday season, a big chunk of the
$9.6 billion
loss predicted for all of 2009. The trade group also
figures one of every 16 returns will be fraudulent, down
slightly from last year.
National Retail Federation
counts as fraud such ploys as returning stolen
merchandise or concocting a fake receipt to get cash, as
well as taking back merchandise after it's been used —
for instance, buying a perfectly fine
New Year's Eve
dress, then pretending it didn't fit.
To fight
fraud, many stores require a receipt for a refund and
charge a restocking fee on major purchases that are
returned without their original packaging.
Some
stores also have begun making price tags on clothes more
visible — affixed to an arm pit rather than the base
of the neck — and they won't take merchandise back if
the tags are removed, said retail federation spokeswoman
Ellen Davis
.
Still,
stores know they can lose out on sales if their return
policies are deemed too restrictive, possibly explaining
why large chains such as
Best Buy
,
Wal-Mart
and
Sears
have extended their holiday-return deadlines for some
electronics and other products.
Nationally,
holiday sales are expected to be anywhere from slightly
better to a little worse than the dismal season last
year.
A lenient
return policy can give stores a competitive edge, said
Richard Galanti
, chief financial officer at
Issaquah
-based
Costco Wholesale
. He said Costco "bends over backward" to
accept returns at its members-only stores, boosting its
membership-retention rates.
"We'll
get high ratings on customer service, when we don't have
a lot of customer service," he said. "It's
because people trust us, and they get great products at
the best price."
After the
financial-sector meltdown in late 2008, Galanti
recalled, some at Costco worried customers would scour
their closets for returnable merchandise. But that
didn't happen. Returns as a portion of overall sales are
down slightly from last year, he said.
Maybe
it's "because people are more discerning when they
do purchase," he said. "People probably are
spending more wisely and buying things that perhaps are
more functional."
A
National Retail Federation
poll of people's return practices came to the same
conclusion as Costco: Despite the recession, about 67
percent of respondents said they did not return any
gifts last holiday season, up from 65 percent in 2007.
The
current uptick in practical purchases — think more
blenders, less bling — plus the popularity of gift
cards both lead Davis, of the retail federation, to
predict fewer returns this season.
"Books,
toys, clothing, small appliances and electronics
generally are well-received because people can use them,
not only immediately, but every day," she said.
Others
contend a widespread emphasis on needs vs. wants could
have the reverse effect.
Jeff Green
, a retail consultant in the
San Francisco Bay Area
, thinks cash-strapped shoppers are more likely to
return gifts, making an already-difficult holiday-sales
season even more difficult.
"If
you get something you don't need or want, you'll
probably return it so you can get the cash and buy
something you need," Green said. "It's really
going to be a not-great season."
O'Neil,
the manager at
Westlake Center's Fireworks
, said she isn't so sure an increase in pre-Christmas
returns will mean more post-Christmas returns as well.
With debit-card transactions recently surpassing
credit-card transactions at the store, she said, many
shoppers appear to be thinking carefully about their
purchases.
Whether a
gift gets returned could depend on how the recipient
answers this question: Do I need it?
"In
previous years, when you were given that sweater you
didn't want or need, you might have just kept it, or
given it to Goodwill or a friend," O'Neil said.
"I think this year, people will be taking it back
for store credit" and buying something they need.
———
RETURN
TIPS
Here are
a few tips for a hassle-free return:
— Take
a receipt: Retailers increasingly require a receipt for
a refund. Without a receipt, they might offer a store
credit for the lowest price the item sold for.
— Don't
disrupt the packaging: Some stores won't accept returns
unless the item is in its original package. Even a
missing manual, cords and cables, or warranty card can
give stores a reason to deny the return.
— Be
wary online: Online retailers usually require a packing
slip and a return-authorization number. Call ahead to
make sure all requirements are being met. Some merchants
will pick up the delivery tab for exchanges, but not
returns. Others offer free shipping on every return.
SOURCE:
Consumer Reports,
National Retail Federation
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