Small and medium business owners today have to remain competitive with the “Big Box” stores in order to remain in business. This can be terribly difficult in a retail environment in which a large national chain can afford to cut prices of merchandise to the bone in order to drive out competition. Price cutting isn’t the only thing small retail store owners need to be concerned with they also have to compete with return policies that may be quite liberal in some businesses. There are some retailers that will take back almost anything, receipt in hand or not, worn or new, this includes clothing. To be clear, in some cases if the customer does not have a receipt they may not get the full price they claim to have paid but they usually can get something from these stores even if only a store credit. Smaller retailers are not in a position to offer such extravagant return policies, especially when clothing appears to have been worn then returned, a practice known as wardrobing. The small business owner who specializes in clothing sales can eliminate the risk of wardrobing fraud by using Alpha Shark Tags on merchandise.
People who engage in the practice of wardrobing purchase clothing with the intent of wearing it a time or two and then returning it. These people are careful to keep their receipts and the tags from the item(s) purchased. Sometimes they will slip the tags off and leave the plastic tag hanger. Other times the tags will be taped so they are still attached but inside the garment so it is out of sight. There are even people clever enough to purchase tag attachment guns and re-tag clothing when they are ready to return it. When an Alpha Shark Tag is used on a piece of clothing, it is unlike retail anti-theft devices that are removed at the point of sale. This tag is designed to be used only once and is removed by the customer when they get the item home and decide to keep it. It does not hinder someone from trying on the garment to be sure it fits properly. Alpha Shark Tags give retailers the ability to refuse a return if the tag is not attached to clothing. The tags should be attached in a location on a piece of clothing that they will stand out. If someone were to try wearing a garment with a tag attached it would be obvious that person intended to return the item later. The tags are also brightly colored so they are clearly visible to everyone.
By eliminating the risk of clothes that have been worn a retailer need not worry about not being able to resell merchandise. When worn or used clothing items are returned the retailer is forced to try to mark down the price of the item thereby losing profit margin. In some cases the clothing can be too damaged and the merchandise has to be marked out of stock entirely. In this situation, there is risk of losing not just profit margin, but cost as well.
By using Alpha Shark Tags and being consistent in a return policy a retailer is not going to risk losing legitimate customers. Shoppers who are honest are only annoyed by inconsistency in store refund policies where they are allowed a return in one instance but turned down later when the circumstances are the same. Shoppers don’t want to make a purchase, get home and find out something doesn’t fit and then get refused when they bring the merchandise back to the store. When Shark Tags are used a store only needs to make sure it is clear to buyers that a return is not permissible if the tag is removed.
Wardrobing fraud is real and can eat away at a store’s profits. Find out how Alpha Shark Tags can reduce return fraud and improve your bottom line.
Need more information on wardrobing? Give us a call at 1.770.426.0547 now.
