Consumers are feeling guilty about past purchases and are returning items in record numbers.  ‘Turns out that baby does not actually need a pair of $400 shoes after all.

According to a survey just released by the National Retail Federation, shoppers are expected to return a record $219 billion in goods this year, or 8.7% of total sales.  That’s up from 7.3% in 2007.  Holiday returns will fare even worse:  ho-ho-oh-no returns came to 8.8% of the total retail haul in 2007 and are forecasted to hit 10% this year. 

The survey does highlight an increasing number of retailers who are planning more lenient return policies, which is nice, but I sure hope merchants also take the opportunity to get that customer to come back!  The way I look at it, a shopper in line to return an item may or may not be in the mood to purchase other items that day.  But the next time she’s ready to make a purchase? Make sure she thinks of you.  A discount or special offer on a future purchase should be handed to the ”returner” right there at cashwrap.   Make it compelling… and have it start, say, February 1st, so you minimize the effect of gamers who might try to use the offer on an already-planned holiday purchase.

Getting a consumer into your store these days is gold:  you may be giving them money back today, but try to encourage them to give you some tomorrow.

holiday shopping     National Retail Federation     return policies