Walmart, Target, Gap, American Eagle Outfitters and others have been reporting that they have too much inventory of stuff ranging from workout clothes, spring-time jackets and hoodies to garden furniture and bulky kids’ toys. It’s costing them tons of money to store it.
And this doesn’t include customer returns.
CTV reports, that instead of piling returned merchandise onto this growing inventory heap, stores are considering just handing customers their money back and letting them hang onto the stuff they don’t want.
How Do Stores Handle Returns
Returned products are handled in several different ways, he said. Retailers take back merchandise from the customer, evaluate it, and if it’s in good condition put it back on the shelf at the same or lesser price.
They can refurbish damaged returns and sell them for less or offload them to liquidators to resell. They also can sell returned products to foreign liquidators for sale in Europe, Canada or Mexico.
Fun fact: over 100 million items are returned annually to Walmart, Amazon and Lowe’s…