By Erin Harris, Integrated Solutions For Retailers magazine
The National Retail Federation estimates return fraud and abuse may be as high as $17B annually. The concept of return fraud (sometimes called wardrobing) in exchange transactions extends the predicament of retail returns, as return fraud and shrink are highly correlated. In the competitive world of retail, it is critical to understand how returns and return fraud reduce net sales and contribute to inventory shortage a clear cause of lost profits. Finish Line, a $1.2B athletic retailer with 657 stores and 11,000 employees, needed a better way to reduce its return rate by augmenting its merchandise return policies and procedures without affecting customer satisfaction.