Lululemon and Retail Return Policies

Lululemon Athletica, a popular retailer of yoga and active clothing, is known for its stringent return policies. After a recent incident with poor customer service during a return, media attention has been focused on the Lululemon return policy. As a retail professional, you can learn from Lululemon's mistakes and successes to adjust your own return policy. In doing so, you can improve the process so it benefits your company and your customers.

Lululemon Athletica has come under fire recently for its return policy after a customer reported that she was treated poorly when returning a low-quality product. According to a CBC News story, a shopper in Toronto was denied a refund when she attempted to return a pair of see-through yoga pants. In addition, the customer claimed that store clerks asked her to put on the pants to prove that they were not up to the brand's standards. The Canada-based retailer has since issued a recall of the same line of yoga pants, citing a problem with the manufacturer. In addition, the company has issued a statement assuring customers that the Lululemon return policy does not require customers to demonstrate the pants' sheerness when returning them to Lululemon stores. The statement was an important move for the company; according to an article by Jeffrey T. McCormack, responsive, friendly customer service efforts can increase loyalty.

Retail professionals around the world can learn a lesson from Lululemon's negative experience. The standard Lululemon return policy states that employees may inspect any item and deem it unworthy for a return. In a situation in which the company was clearly at fault for producing a low-quality product, however, it quickly made an adjustment to its policy. Although the policy change applies only to a single item, it reassures customers that they won't be subjected to an unfair or abusive return process.

Before the incident with the sheer yoga pants, the Lululemon return policy was often criticized as being too tough. If a customer purchases an item in a store, she has fourteen days from the date of purchase to return it. For items ordered online, customers have fourteen days from the date of delivery to process a return; however, Lululemon requires that customers ship the item within seven days so it can be processed within the fourteen-day period. By implementing stringent timelines, the store can get the merchandise back on the shelf quickly—before it can be replaced by a newer item. As you develop your own return policy, it is important to consider the timeline that works best for your business.

If your business processes online orders, you can also learn from Lululemon's online return process. To make it easier for the company and the customer, Lululemon requires that customers visit an online return page, follow a set of steps, and create a return form and shipping label. Then, Lululemon requires that the package be dropped off at a FedEx or USPS location so that the customer can track the package. In doing so, the company reduces confusion for all involved parties. To save on costs and prevent customers from abusing the return process, Lululemon subtracts a five-dollar shipping fee from returns. For businesses that handle a great deal of online orders, the return process can be expensive. By following Lululemon's example, you can reduce those costs and keep prices low.

For businesses that accept a wide range of items for return, it can be difficult or impossible to resell the merchandise at full value. If you frequently lose a profit because of returns, you can take a page from the Lululemon return policy. For a customer to return an item to a Lululemon store, the customer must have the receipt. The product must be unworn and unwashed with all tags attached. If a customer is returning swimwear, it must still have the hygiene liner attached to the bottom piece. In addition, the policy specifies items that are ineligible for return; in doing so, the company saves money on items that cannot be resold.

As you develop your own return policy, keep the Lululemon return policy in mind. Although you may not be as specific or as rigorous in your returns, you can implement one or two similar tactics to protect your business and improve sales.

Image by lululemon athletica (Flickr: Balance!), via Wikimedia Commons