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Stores like Target, Walmart, Gap and American Eagle Outfitters have realized that they have way too much inventory and are thinking about doing something that no one would've thought. The retailers are considering that customers can keep the items that they want to return because it is costing them more to store the products.
Instead of taking all those returns and storing them along with their overstock of items, they plan on giving customers their money back and will let them keep the items that they are trying to return. When someone returns an item, retailers must evaluate it and if it's in good condition they'll put it back on the shelf for the same or reduced price. On damaged returns, retailers usually refurbish them and sell them for less, or offload them to liquidators to resell.
"It would be a smart strategic initiative," said Burt Flickinger, retail expert and managing director of retail consultancy Strategic Resource Group. "Retailers are stuck with excess inventory of unprecedented levels. They can't afford to take back even more of it."
Due to having overstock of items, companies are thinking of the 'returnless return' option for this year where customers can either keep the item or donate it after they get their refund. Click here for more.