LUFKIN, Texas (KTRE) – After all the sales and shoppers, this is the downside for major retailers: the holiday returns.

Small businesses know it can affect them, too.

“During the holidays we know that some people may not like what they got or somebody got them, something that they didn’t want,” said Besos Boutique owner Janina Jordan.

The National Retail Federation predicts retail returns to exceed $800B. Retailers expect their return rate to be 17% higher during the winter holiday.

Locally, small businesses like Besos Boutique are seeing the opposite.

“It’s actually surprising we haven’t had any returns as of now, so that’s a good thing,” said Jordan.

It’s a good thing because according to the NRF’s survey, retailers estimate over 16% of their annual 2024 sales will be returned.

That would be a big hit for small retailers, like Haute as Ice Boutique.

“We don’t have a ton of returns, and that’s good, because they kind of eat away at your profits a little bit, but we do like to see you come back in the store,” said Haute as Ice Boutique owner Chloe Shofner.

Both Shofner and Jordan say they allow exchanges or a store credit with receipt and intact labels, but they don’t do refunds.

Of retailers surveyed, 68% say they want to improve the returns process for customers.

Jordan says that’s because it’s best to have a happy customer than one who won’t come back.

“We kind of try to work with the client as much as we can, as well as keep our policy and not be ran over as a small business.”

The NRF survey showed 84% of consumers say they’re more likely to shop with a retailer who offers no-label returns and immediate refunds.

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