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The Honolulu Advertiser
Posted on: Monday, January 13, 2003

Stores tighten policy this year on gift returns

By Anne D'Innocenzio
Associated Press

NEW YORK — Although the holiday season is now just a memory, consumers are still going back to stores and malls, expecting to return the clothes that didn't fit and the toys the kids hated.

Salima Silverman worked the return counter at a Target store in Naples, Fla., the day after Christmas. Chains including Target have tightened once-liberal return policies.

Associated Press

But many people hoping to get their money back or exchange merchandise have found it's harder than they thought, even impossible. Stores including Gap and Saks Fifth Avenue have tightened once-liberal return policies over the last year, demanding original receipts, offering stricter time limitations and asking for identification.

Retailers say their tougher policies ultimately benefit the consumer by cutting down on fraudulent returns. That, merchants say, keeps down their costs and the prices they charge.

But having to deal with the knotty rules of returning, which not only vary from merchant to merchant but across product categories, is giving consumers a headache.

Bob Silber of Fort Lauderdale, Fla., is now stuck with a $60 computer mouse, a gift rejected by a family member. When Silber went back to CompUSA right after Christmas and tried to exchange it, the store manager refused, because the customer had missed the 14-day return deadline.

"I was a good customer. I purchased computers there," Silber said. "I'm not going back."

Debra Sjogren, a CompUSA spokeswoman, confirmed that was the company's policy, but also advised shoppers to speak to customer service representatives if "they are not happy at the store level."

Abigail Carr of Manhattan ended up giving away a Winnie the Pooh video her brother-in-law purchased at Toys "R" Us for her son. She wanted an exchange or credit but didn't have a receipt, which, company spokeswoman

Susan McLaughlin noted, is required for videos and electronic games.

"I'm probably going to shop at smaller stores," Carr grumbled, noting that she was too embarrassed to go back to her relative to ask for the receipt.

Susan Whyte Simon thought getting a refund for a sweater her mother-in-law gave her from Banana Republic would be a cinch, since she had a gift receipt and was returning it at the same store from which it was purchased. She was wrong.

Simon was told she needed the original receipt for a refund. Now, weeks after Christmas, her mother-in-law, who is stuck with the sweater, hasn't found it.

"I think it is strange to give you a gift receipt when it isn't really a receipt," said the 47-year-old Rockville, Md., resident.

Claudia Hawkins, a spokeswoman for Banana Republic, confirmed that gift receipts at Banana Republic allow only for exchanges and merchandise credits. "It is unfortunate," she said of Simon's situation, although she noted that the policy is posted in the store.

Ed Keller, chief executive of RoperASW, a New York-based market researcher, believes strict return policies are short-sighted.

"Consumers want it all these days," he said. "They're looking for discounts. They're looking for convenience, and for customer service. If one retailer doesn't treat them well, they can go elsewhere."

With that possibility in mind, Circuit City Stores Inc. is using its relatively flexible return policy as a competitive edge, promoting it in its current TV advertising campaign. For products purchased in November and December, customers need to return the item by Jan. 31 to get an exchange or return, provided they have a receipt.

Last April, Circuit City dropped its 15 percent restocking fee, applied to personal computers and related accessories returned after being opened. A restocking fee is standard practice for certain consumer electronics.

"It's a good, consumer-friendly offer," said Jim Babb, a spokesman for the Richmond, Va.-based chain.