In the grand scheme of things, returns are not a massive problem for Megan Searfoss and her team at CT Run Co. Among her four Connecticut-based stores, Searfoss says the return rate hovers around four percent, a low figure attributable to her staff’s diligence with in-store customers. And yet, returns remain a source of frustration for Searfoss, especially as “return culture” accelerates and consumers expect uber-forgiving return policies — or else.

“In a situation in which we don’t take something back, we risk losing business. That’s the culture now,” Searfoss says.

If you, like Searfoss, suspect consumers are initiating returns more often these days, your hunch would be correct. Apparel is an especially concerning category.

According to the 2024 Consumer Returns in the Retail Industry Report from the National Retail Federation (NRF), an estimated 16.9 percent of retailers’ annual sales in 2024 – some $890 billion – came back to the store. That figure is more than double the return rate of 8.1 percent from 2019.

The Problem of Rising Returns

While high-touch, brick-and-mortar operations like run specialty shops endure lower return rates than online retailers, returns nevertheless represent an ongoing challenge. Managing and processing returns bring added costs, including credit card processing fees and shipping expenses, as well as inventory management issues.

Consumers, meanwhile, possess lofty expectations for returns, largely expecting immediate refunds and a seamless process. The threat of social media ostracization looms over every interaction. 

Though some returns to a running store are easy and clear cut, others can prove tricker. In some cases, retail staff must determine if a returned product is the result of user error – perhaps a teen regularly used his running shoe for basketball – or a product defect. In other instances, staff might encounter a fraudulent return. According to the NRF report, 93 percent of retailers call retail fraud and other exploitive behavior a significant issue for their business.

In current times, retailers must strike a balance between providing a smooth return process that appeases customers while simultaneously controlling the return rate to protect their bottom line. In and out of the run specialty marketplace, retailers continue striving to discern the appropriate formula.

Retailers surveyed in the NRF report identified improving the returns experience and reducing the return rate as two of the most important elements to achieving their 2025 goals — ranking above boosting online sales. Even more, 68 percent of retailers planned to prioritize upgrading their returns capabilities within the next six months.

Setting An Appropriate Clock 

On March 17, Fleet Feet launches its revised return policy, one informed by healthy discussions and deep evaluation with the company’s 15-person brand advisory council comprised of franchisees and operating partners. While Fleet Feet chief operating officer Jason Jabaut says the nearly 300-store company’s amended “Happy Fit Guarantee” includes modest changes to the fine print – some protections to prevent return abuse and provide operators additional discretion – the biggest change comes to the return window, which has dropped from 60 to 30 days.

Digging into store data, Jabaut says most returns were happening within 30 days, which seemed a fair amount of time for customers to trial a product and make sure it works for them. With a prolonged return window, Jabaut says product condition can only deteriorate further.

Jabaut is hopeful the company’s revised return policy will mean fewer returns and, subsequently, more time for staff to support customers and improve business operations. 

The issue resonates just as strongly with smaller retailers. When Matt Abitbol opened Commonwealth Running Co. in early 2020, he adopted a wait-and-see approach with respect to a return policy. Quickly, however, Abitbol switched gears given experiences in the store and conversations with other retailers. He landed on a 14-day return window and a 30-day exchange window.

“Two weeks seems enough time to walk around the house, get on a treadmill and get back to the store if the shoe doesn’t work,” he says. “The 30 days, then, is there as a catchall.”

Like Commonwealth, CT Run Co. also has a 14-day return policy. However, staff will revert to what individual brands publicize as well. Altra, for instance, guarantees 30-day trial runs while Brooks allows 90 days.

To be certain, there’s no one-size-fits-all timeline for every running retailer. Transparency certainly helps. So, too, does perspective and a pinch of grace.

Abitbol, for example, provides more leeway with returns of in-store purchases, feeling he and his team take far more responsibility for fitting visitors to the Evanston, IL, store. Online purchases, however, face heightened scrutiny.

“It’s the same policy, but I’m much tighter with it,” Abitbol says of online purchases. 

A Part of the Sales Process?

In run specialty stores, many see returns – as frustrating, disheartening and complex as they can be – as a second chance and an opportunity to “recover” a customer.

At Commonwealth, in fact, Abitbol has learned to view returns as “another part of the sales process.” He encourages his staff to be kind, courteous and “really listen” to the customer while also leaning into their own life experiences — much as they would during the initial sit-and-fit experience.

“If people have a bad return experience in our stores, then that can drive them online,” he reminds his fellow running retailers.

Abitbol’s fear is warranted. Two-thirds of consumers, according to the NRF report, say a negative return experience would discourage them from shopping with a retailer again.

“That’s why I’d rather they come in and we try to get it right,” Abitbol says. “If the shoe they purchased just sits in their closet and they don’t reach their goals, then that’s a negative experience we’re unaware of and we never had a chance to fix.”

When a customer walks in with a return, it’s typical for some retail staff to shrivel up and walk away. They sense a defensive customer holding a pre-planned argument. But customers often carry their own anxieties as well. 

Searfoss has her team well-versed on openly greeting the customer and working to re-engage the individual in the sit-and-fit experience. Ultimately, she wants to convert the customer into a new shoe, something her team accomplishes “the lion’s share of the time,” she says. 

If CT Run Co. staff cannot immediately convert the customer – maybe the customer says they don’t have the time to commit to another sit-and-fit experience or they purchased a different color of the shoe online – they then try to convert the return into a store credit. While they will gladly process a return on a credit card, they’ll often wait for the customer to specifically request that resolution.

The Rise of Return Fees

In many ways, the uber-forgiving return policies of online retailers and national chains shaped today’s lenient return culture. Yet, the pendulum is beginning to swing in the broader retail ecosystem as return rates climb.

According to the NRF report, two-thirds of retailers have started charging fees to offset the rising costs of processing returns, reduce return rates and mitigate return fraud. 

To battle “frequent fliers,” in particular, 50 percent of retailers have increased return fees for fraudulent shoppers while 44 percent have simply blocked shoppers with high return rates. Such decisions are happening mostly in the e-com space, but they are happening — and it is a greater retail trend worth monitoring.

Most retailers charging for returns report lower return rates, recouped revenue from fees and increased rates of exchange. In short, the fees are working as intended. 

But it’s not all rosy, as 43 percent of retailers who instituted return fees have seen an increase in customer complaints about the new charges. Two in five, meanwhile, say they’ve lost customers or faced declining sales. 

One potential way retailers are trying to walk the ever-fine return line is by allowing free returns (or enhanced grace periods) for customers enrolled in a store loyalty program. Being upfront and transparent about charges and fees helps, too. 

At Fleet Feet, Jabaut will continue monitoring returns at Fleet Feet stores, listening to store operators and tracking policies in the greater retail ecosystem to inform any future tweaks to Fleet Feet’s return policy.

“We have to pay attention to what’s out there in the world,” Jabaut says. “Where can we make adjustments to stay relevant? It might be tricky and painful, but it’s important we align our customer centricity with the health of the business and operations.”