Managing Holiday Returns: Tips to Avoid Fees and Extend Return Windows
The holiday season has come to an end, and now it's time for returns, which could end up costing consumers more this year. Despite economic challenges like inflation and unemployment, Americans increased their holiday spending by 3.9% compared to the previous year, according to Mastercard. The National Retail Federation also predicted above-trend growth in holiday spending, with consumers prioritizing spending on special occasions throughout the year.
However, with increased spending comes an increase in returns. The National Retail Federation estimates that nearly 15% of all sales this year will be returned, and more retailers are charging for returns to cover costs, improve efficiency, and prevent fraud. Some retailers like Zara, J. Crew, JCPenny, Macy's, TJ Maxx, and Marshalls have implemented return fees ranging from $4.95 to $11.99.
To avoid return fees, consumers can opt to return items in-store or at designated locations. Many retailers have extended their return windows for holiday purchases, with Best Buy accepting returns until Jan. 16, Target until Jan. 24, and Amazon, Macy's, and Walmart until Jan. 31. Locally, the Magnificent Mile Association expects positive growth along Michigan Avenue as foot traffic increases and vacancy rates decrease during the holiday shopping season.