According to the National Retail Federations third annual Return Fraud Survey, completed by 82 retail loss prevention executives last month, more than half of the retailers surveyed (52%) say their holiday return policies will be more lenient than the policy for the rest of the year. Last year, only 35% of surveyed executives reported more leniency with returns for Holiday 2007 than for the rest of the year.
In addition, the number of retailers who said they will loosen up their holiday return policy compared to last holiday season tripled, from 3.4% of retailers to 11.0%. Common changes may include retailers extending the amount of time for returns to be made and also being more flexible to customers without a receipt. In comparison, 17.1% of retailers said their return policy will tighten this holiday season, up slightly from 15.3% last year. In addition, 71.9% of retailers policies will remain the same as last year.
Retailers know the decision to make return policies more lenient may come at a cost. According to the survey, return fraud continues to plague the industry and will cost retailers an estimated $3.54 billion this holiday season, down slightly from $3.6 billion last year. Retailers will lose an estimated $11.8 billion to return fraud in all of 2008. However, retailers seem to be tackling the problem, as return fraud is expected to decrease to 7.5% of holiday returns from 8.9% last year.
