Major U.S. retailers' longer return policies, launched during the pandemic this year to lure consumers, could leave them facing much higher costs if shoppers bring back a record-setting $112 billion in gifts bought during the extended holiday shopping season.
its quarter ending Nov. 30 were already 12.5 percentage points higher than the same period last year and 7 percentage points higher than pre-pandemic levels. Those higher rates and related logistic costs led it to cut its annual margins forecast twice in the past four months.Consider a sweater priced at $100.
If a customer returns the sweater to the store and it is not resold, the retailer loses $25 in margin. The lost margin spikes to $31 if it had to collect the online purchase and return it from a customer's home to a distribution center, according to the report that reviewed returns policies of retailers including Walmart, Amazon.
"We are living in a rats' nest at the moment, and it’s really hard to untangle what’s going to happen," she said.CEO Tim Cook told Reuters the impact of supply-chain disruptions would be worse this holiday season as persistent shortages of software chips were affecting "most of its products," leading the iPhone maker to fall short of demand by more than $6 billion.
Apple introduced a policy this year allowing customers up to 68 days to return a product, instead of 30 days.Nordstrom Rack has extended its return policies on many products to 45 days, Nike to 60 days and Macy's, Walmart and Saks Fifth Avenue to as much as 90 days.
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