Your Target Store Returns In Sioux Falls May Have You Keeping the Purchase
After a trip to your neighborhood Target store, you discover that something isn't the right size. Something else is the wrong brand. Your spouse told you to pick up this, but you picked up that. Now what?
But I Don't Want This
Okay, grab the receipt, put the merchandise back in the Target bag, and return to the store with your returns. Only to be told to keep it while getting your money back. Huh?
Recent reports of big-box stores dealing with less consumer spending due to inflation and higher prices at the pump have companies like Walmart, Gap, American Eagle Outfitters, and Target sitting with too much inventory.
It's also a mix of the supply chain crisis and that 'too much inventory' issue.
What's The Reasoning Behind This
So why are Target and the other retailers refunding your money and telling you to keep the unwanted items? Because it is costing these companies too much to store them.
"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."
In the Thomas Index Report issued in May, for every $1 billion in sales, the average retailer sees $166 million in returned merchandise.
Is Target Losing Money
Earlier this year Target reported a 52% drop in profit for the first quarter, missing Wall Street's forecasts.