With Christmas gifts given, returns season begins — and it could cost you
As the season of giving comes to a close, the season of returning begins, but this year it could cost you more.
Consumer spending during the holidays was up compared to 2024, but a good chunk of that is going to be returned. It's a costly process that consumers should be aware of.
Despite economic pressures like inflation, tariffs and an uptick in unemployment, holiday spending by Americans was up 3.9% compared to last year, according to Mastercard. Via said spending was up 4.2%.
That upward trend is in line with what the National Retail Federation forecasted.
"If we look at the 10 years pre-pandemic, growth is more like 3.6% on average, so this is above trend growth," said Mark Matthew, executive director of research for the National Retail Federation.
The group said wages have outpace inflation, and even through economic challenges consumers have prioritized spending during the holidays.
"Over the course of the year, even through difficult times, even with low sentiment, we've seen consumers spend money on family," Matthews said. "So if you're looking at Mother's Day, Father's Day, Halloween, back to school, all those we had record or near-record spending."
But with all spending comes some returns. A report by the National Retail Federation estimates nearly 15% of all sales this year will be returned. On top of that, there's an increase of retailers charging for returns, from 66% last year up to 72% this year.
The report says retailer are concerned about costs, efficiency and fraud when it comes to returns.
Zara is charging $4.95 for returns; J. Crew is charging $7.50, JCPenny is charging $8, Macy's is asking $9.99 and TJ Maxx and Marshalls are charging $11.99 for returns. Other retailers
Many large retailers also extend their return window for purchases made during the holiday shopping season, so you should check to see what they are. Best Buy is taking holiday returns until Jan. 16, Target until Jan. 24, and Amazon. Macy's and Walmart are all accepting holiday returns until Jan. 31.
A simple way to avoid some fees is to return your merchandise in-store or at designated locations.
Locally, with foot traffic up and vacancy rates down along Michigan Avenue, the Magnificent Mile Association said at the beginning of the holiday shopping season, they expected this year to continue positive growth along the city's shopping hub as it recovers from the impacts of the pandemic.