Retail / news
Holiday Returns Need a Fresh Retail Approach, Sensormatic President Says
Retailers should rethink how they manage holiday returns, balancing shopper-friendly policies with return fraud and inventory-accuracy risks, says Tony D’Onofrio, president of Sensormatic Solutions.
Holiday trading puts inventory accuracy, shelf availability and omnichannel operations under intense pressure, with significant sales at stake, D’Onofrio said.
Returns have become a standard part of modern retail, and shoppers expect convenience at every turn. Consumers seek out and reward stores that embrace flexibility, but the holiday period makes the issue more acute because gift-giving peaks.
Buying for someone else raises the likelihood of a wrong size, color or model. Shoppers want assurance that a store or brand will correct the problem if a gift does not work out.
More generous return policies can, however, increase risk. D’Onofrio said loosening the rules can make bending them feel less taboo, adding to concerns about return fraud. Retailers also need inventory accuracy as returned goods move back through stores and fulfillment networks.
Sensormatic Solutions points to RFID technology as a way to improve inventory accuracy and prevent losses during the holiday shopping season. D’Onofrio frames returns as one of retail’s most persistent challenges, one that requires a new approach when holiday pressure is at its height.