Toys R Us Informative - Simple Economics - Returns
PHILADELPHIA, PENNSYLVANIA -- For those of you dropped out of high school or never finished middle school, I can see why you can't grasp return policies.
A receipts sole purpose in it's existence is for the consumer's ability to exchange a good - whether defective or inadequate - for another. In the case that the product can not be replaced, then - and only then - can a refund or a store credit be registered.
For a store to accept your double / defective / unwanted item without a receipt stating that you had in fact purchased it at that selective store, would be unruly and wrong for them to do so. See, there is a thing called space. Matter takes up space. Firsthand, working in warehousing, I can say that defective items that are issued refunds interfere with what is needed to be done in the back of a store whose functions include stocking, emptying trucks of products, and ordering new ones. If you cripple productivity by reducing the usefulness of the workers, while on shift, you are hurting profit gains in the long run.
Another aspect to consider are the three main types of profit (stay with me, latch key kids): Economic profit, loss and normal profit. If your open threat of, "I will never shop here again!" is going to harm them, you are wrong. Most of the products you buy at any department store (especially TRU), are of normal profit. The money put into purchasing them directly from the manufacturer isn't that much less than you buy them for. Granted, specific types of hardware (such as controllers for a video game system or a DVD player) are of economic profit - they generate more than they are purchased for, first hand. But most of the things that FILL stores are just to bring you to shop there. The Buyer Protection Plans (which cost them practically nothing because they have one large contract that pays an insurance company a large amount of money over a short period of time; the insurance companies rely on the reliability of the products they are backing and TRU gains a large net profit because the extenuating sum they paid will be less than what they will make over a certain period of time) and the credit cards (25% interest payments after 6 months to 2 years) are what make them money. Not the products. If you never bought these plans, you are basically worthless to them. If you return an item that they cannot resell or do not offer, it has no use. It is an economic loss and as a general courtesy, unless you intend to become a shareholder in the company's finances, your one of millions that they can afford to lose.
Stores aren't in the business to lose money. If you have a legitimate problem with an item and you have a receipt, there is no reason they should disregard your ability to exchange it. They had lost more money on their open-ended return policy than they had gained.
To whomever stated in an earlier review that TRU's reason for failing is their return policy, newsflash: They've been going down before this. They ALTERED it to save themselves from getting worse. The only reason Walmart and some other stores can afford to keep open-ended return policies is because they are monopolies. There is competition, sure, give another four years and everything will be destroyed by big bargain chains. They ship the economy and jobs to places overseas for the cost of cheap production and low efficiency. It's the realization that customer service doesn't exist anymore. Some stores have the ability to exchange your item because it's pennies on a dollar to them; others struggle to keep themselves afloat.
You can refuse to shop from them all you'd like - it's freedom of choice. But I hope most of you are content shopping at bulk stores and eating McDonalds for the rest of your lives because Americans are what's killing the economy - not the housing market. You can't buy into a system that doesn't give back into it.