Hardware Retailing The Industry's Source for Insights and Information
While independent home improvement retailers are set apart from competition in areas like customer service and personalized product knowledge, a store’s return policy can also make independents stand out from the crowd—and keep customers coming back.
According to the National Retail Federation (NRF) and Happy Returns 2024 Customer Returns in the Retail Industry Report, 67% of consumers said a negative returns experience would discourage them from shopping with a retailer again and 84% of consumers report being more likely to shop with a retailer that offers no box/no label returns and immediate refunds.
Big-box competitors of the independent channel, like Home Depot and Lowe’s, who traditionally offered flexible return policies, have adopted stricter return guidelines, eliminating flexibility for customers.
According to an article published by The Street, Home Depot and Lowe’s have both implemented more stringent return policies on certain items. Home Depot has a 48-hour return policy for major appliances, and at Lowe’s, major appliances and products like air conditioners, paint sprayers and portable generators must be returned within a 48-hour period. Home Depot will take items like dehumidifiers, pressure washers and air conditioners back within 7 days of purchase.
Strict return policies hinder customers from resolving issues that may arise after a few weeks or months of product use. This presents an opportunity for independent retailers to better meet customer expectations and attract more customers from larger retailers by offering more accommodating return policies.
The NRF report also noted that retailers estimated that 16.9% of their annual sales in 2024 were returned, making customer returns a headache for many retailers, regardless of their size. While flexibility in returns can be a positive differentiator from the competition, independent retailers still need guidelines around return policies, and many still find difficulty in creating these policies.
To guide retailers as they develop their policies, several retailers shared their return policies and the ways they have found to mitigate fraud and keep customers satisfied in the July issue of Hardware Retailing. These methods included simple but clear policies and well-trained employees who can provide a high level of customer service to assure customers purchase the products they want and need. Read more here.
