Wardrobing -4                                                                                                             WC Blog 361
Return Fraud -3
Alpha Shark Tags – 3
Clothing Retailers Closing Shops Due To Decreased Profits; Improve Profits And Prevent Wardrobing And Return Fraud With Alpha Shark Tags 
     I was walking through a mall in our area a few days ago and noticed a number of empty spaces where clothing stores once stood. I find it somewhat depressing to be quite honest. I was also alarmed that an anchor store in that same mall was on an initial list of store closings this major chain was going to shut down. Every indicator seems to point to these stores not being as profitable as they once were. Some are struggling due to theft, some are just not appealing to what the customers want or the prices are not competitive with online stores. I also wonder how much is due to return fraud that these stores may be experiencing.  I know from my many years in Retail Loss Prevention that there is a significant amount of abuse of store return policies. A number of people purchases clothes, wear them and return them getting full refunds for their purchases. It happens frequently enough that there is even a name for it, wardrobing. For store managers it can be difficult to distinguish between clothes that have been worn a few times and those that were tried on. I found it disturbing that there are websites, discussion boards and blogs that discuss how items can be re-ticketed and returned.
     For those who are unfamiliar with wardrobing it is quite simply the act of purchasing clothes with the intent of wearing it once or twice and returning the item for a full refund. Those who engage in this pretend to justify it by suggesting that they are staying within the policies the stores set up. This is simply an excuse. To purchase an item and try it on at home and decide you don’t like it is one thing. To purchase an item so you can wear it out and be seen in it and then return it is deceitful and does constitute return fraud (but is not necessarily illegal).  There is one sure method to prevent this type of fraud and a few other steps a retailer can take to deter it. Placing Alpha Shark Tags on a garment is the sure method of prevention and can be used by online retailers and brick and mortar stores. A Shark Tag is not an anti-theft device, it is a one-time use brightly colored tag that is pinned to a garment. The tag stays on the clothes when they are bought and the customer cuts it off after they get home and decide they want to keep the item. The store return policy should stipulate that without the tag intact on the merchandise, no refund is permitted. 
      What else can retailers do to try to prevent wardrobing, in addition to using Alpha Shark Tags, especially since the internet is filled with tips for how to get around return policies?
Have the store return policy clearly stated at the point of sale and if possible have it print as a message on the receipt.
The internet provides tips on how to hide merchandise hang tags and reattach them. This means it is important for store personnel to look for other indicators the item was worn. Look for food or make-up stains. Smell for odors of cologne, perfume or cigarette smoke, all of which could point to the clothes having been worn out somewhere.
Charge a restocking/cleaning fee for merchandise that has the signs mentioned above, smells, stains and possible rips or tears. Anything that would require a merchant to possibly suspect wardrobing has occurred and cause them to have to mark down merchandise would be included.
Be consistent with your policies and back up your return desk team. If you or your managers become wishy washy or “do it this one time” you take away the credibility of your employees and undermine them. You also cannot track how many “one times” you gave someone.
Of course there is never a perfect system, but taking precautions can deter a lot of the return fraud that goes on in retail. 
     Is this the sole cause for the demise of many retailers? Certainly not, the internet has made shopping for clothes a very competitive business and people are going to go for the best value. But theft and fraud do take a toll on profits.  Use Alpha Shark Tags on all clothing items, have a clearly stated return policy and stick by it. You’ll find you can remain very customer friendly and still be profitable without constantly fighting return fraud.
Get more information on wardrobing, contact us or call 1.770.426.0547 today.
     

I was walking through a mall in our area a few days ago and noticed a number of empty spaces where clothing stores once stood. I find it somewhat depressing to be quite honest. I was also alarmed that an anchor store in that same mall was on an initial list of store closings this major chain was going to shut down. Every indicator seems to point to these stores not being as profitable as they once were. Some are struggling due to theft, some are just not appealing to what the customers want or the prices are not competitive with online stores. I also wonder how much is due to return fraud that these stores may be experiencing.  I know from my many years in Retail Loss Prevention that there is a significant amount of abuse of store return policies. A number of people purchases clothes, wear them and return them getting full refunds for their purchases. It happens frequently enough that there is even a name for it, wardrobing. For store managers it can be difficult to distinguish between clothes that have been worn a few times and those that were tried on. I found it disturbing that there are websites, discussion boards and blogs that discuss how items can be re-ticketed and returned.
     

For those who are unfamiliar with wardrobing it is quite simply the act of purchasing clothes with the intent of wearing it once or twice and returning the item for a full refund. Those who engage in this pretend to justify it by suggesting that they are staying within the policies the stores set up. This is simply an excuse. To purchase an item and try it on at home and decide you don’t like it is one thing. To purchase an item so you can wear it out and be seen in it and then return it is deceitful and does constitute return fraud (but is not necessarily illegal).  There is one sure method to prevent this type of fraud and a few other steps a retailer can take to deter it. Placing Alpha Shark Tags on a garment is the sure method of prevention and can be used by online retailers and brick and mortar stores. A Shark Tag is not an anti-theft device, it is a one-time use brightly colored tag that is pinned to a garment. The tag stays on the clothes when they are bought and the customer cuts it off after they get home and decide they want to keep the item. The store return policy should stipulate that without the tag intact on the merchandise, no refund is permitted. 
     

What else can retailers do to try to prevent wardrobing, in addition to using Alpha Shark Tags, especially since the internet is filled with tips for how to get around return policies?

Have the store return policy clearly stated at the point of sale and if possible have it print as a message on the receipt.

The internet provides tips on how to hide merchandise hang tags and reattach them. This means it is important for store personnel to look for other indicators the item was worn. Look for food or make-up stains. Smell for odors of cologne, perfume or cigarette smoke, all of which could point to the clothes having been worn out somewhere.

Charge a restocking/cleaning fee for merchandise that has the signs mentioned above, smells, stains and possible rips or tears. Anything that would require a merchant to possibly suspect wardrobing has occurred and cause them to have to mark down merchandise would be included.

Be consistent with your policies and back up your return desk team. If you or your managers become wishy washy or “do it this one time” you take away the credibility of your employees and undermine them. You also cannot track how many “one times” you gave someone.

 

Of course there is never a perfect system, but taking precautions can deter a lot of the return fraud that goes on in retail. 
     

Is this the sole cause for the demise of many retailers? Certainly not, the internet has made shopping for clothes a very competitive business and people are going to go for the best value. But theft and fraud do take a toll on profits.  Use Alpha Shark Tags on all clothing items, have a clearly stated return policy and stick by it. You’ll find you can remain very customer friendly and still be profitable without constantly fighting return fraud.

 

Get more information on wardrobing, contact us or call 1.770.426.0547 today.