The Boston Globe has an interesting article in which they attempt to explain the phenomenon of “retail renting” or “wardrobing”–where consumers buy items with the intention of returning them when they’re done with the prom or the meeting or whatever. The article blames a mix of influences, including the economy and celebrities who obviously borrow many of their fancy gowns and jewelry.
Some people don’t see anything wrong with the behavior:
Jimmy Deignan’s first time was with a $500 portable DVD player.
He bought it a few years ago at Best Buy for a Boston-to-Los Angeles flight, knowing he would return it for a full refund when he got back. More recently, in November, rather than spending $600 to rent a LCD projector for a business presentation, the Holden resident purchased one at Staples, then returned it a few days later and got his money back.
The way Deignan sees it, he is just a smart shopper: He gets the things he needs, uses them for as long as he wants, and saves money.
…
Some shoppers who wardrobe do not think they are doing anything wrong. Deignan refers to the way he buys as renting. To see him through the NFL playoffs, Deignan planned to wardrobe a plasma TV after his set broke in December. But it got fixed in time, just before the first Patriots playoff game.“There’s lots of times when I buy stuff that someone’s bought before. When I rent something, I’m taking good care of it,” said Deignan, who works as an event coordinator. “And, it made me look good when I saved my company $600 in rental fees for the projector.”
Retailers are responding to people like Deignan with increasingly invasive policies that attempt to weed out the “wardrobers” from legitimate returns. Is “retail renting” ethical? Or is this fraud?
Retailers Crack Down On Serial Returns [Boston Globe] (Thanks, Sean!)
(Photo:Getty)
Ugggh – I used to work at Nordstrom – handbags to be exact. It was HORIBBLE in the fact that all of these low class people would buy expensive designer bags and then return them because they know you can return ANYTHING to Nordi’s- regardless of how many years you have been using it. It really sucks for the employee since they work off basic commission so sometimes you would start your day at negative – $2200 (because some pampered soccer mom decided to return her Chloe bag before her husband finds the receipt)….and have to dig yourself out of the hole because of the daily returns. If you go on vacation they actually deduct it from your PAYCHECK! Nordstrom doesn’t seem to care because they know when people come back in they get more business..people buy more crap. And they are such a big retailer that they get stuff from manufacturers at a good deal and absorb the cost a bit…. Oh and I guess they make money from their retail card and the 22% interest that is charged. I don’t think they should have such a lenient return policy.
When renters purchase the item, the retailer is earning interest or whatever on the money you paid until the purchase is refunded. They get their merchandise back but you’ve sacrificed your own earning power on the money you initially paid. I do it primarily target and punish retailers who have given me bad service in the past. Even then, if I rent the same item more than twice, I usually keep it the third time….after buying it from a competing retailer. How’s that for ethics? That should p*ss off the moral (or should I say ethical) majority, I’m sure!
On the issue of ethics, let’s all agree it’s unenthical, so what?
I’m a law abiding within the return guidelines. Since when is everyone perfectly ethical in everything they say and do each and everyday? Maybe someone should break into someone’s house and steal whatever they need. It’s not stealing when stores receive their merchandise back. Compare prices between full retail and year-end clearances. They make planty of mark-up.
Apparently retailers don’t place a value on ethical standards anyway. It’s their stuff, I think they are the only ones privileged to define what is ethical about returned merchandise.