Bouquets and brickbats for refund policies

On the eve of the great paper explosion, Christmas trees around New Zealand are twinkling in anticipation. But what retailer lies beneath those bulging piles of wrapping paper, fluffy foil rosettes and wrestled sellotape?

The answer will affect our ability to get a refund on the things we don't like. Some stores deserve a bouquet for their policies and others a brickbat for being present-poopers.

When you line up New Zealand's major department stores, I'd be praying my gifts have come from The Warehouse. In second place I'd pick Kmart and fingers crossed no one has been near Farmers.

My reasons have nothing to do with whether these shops will let me exchange an item. Retailers are pretty good if it doesn't fit, or you'd like another colour.

What I judge them on is their refunds policy – the willingness to give cold hard cash back if you've changed your mind and just don't like it. Why must I be forced to buy something else in their store?

The Warehouse wins the bouquet. They've set the bar high and it's time for other retailers to raise their game.

With the exception of a few items like undies, swimwear, and cosmetics, you can ask for a full refund in cash, up to 12 months after an item has been purchased. Of course it has to be in mint condition with the packaging and tags in place. They'll even waive the requirement for the receipt if its obvious they've sold it.

Kmart will do the same but you've only got 14 days. Two weeks versus an entire year is a big disparity. They could do with a festive extension.

Santa at Torpedo 7 has extended their refund policy out to 90 days in a splash of Christmas goodwill. They're owned by The Warehouse, so good consumer friendly policy is no surprise.

Farmers. Oh dear. You just can't change your mind, so they get the brickbat.

Get your skates on, because you've only got 14 days for an exchange or gift card. No refunds, unless the goods are faulty.

This is a store that has been around since 1918. With their 100th birthday party on the horizon a new refunds policy would be a welcome present to New Zealanders. It's sink-or-swim out there with online shopping competition and incredibly they ignore this.

Can you imagine buying something online and not being able to return it for a full refund? You'd have to start trawling a website trying to find something else to spend a voucher on.

'Click-regret' isn't something the online retailers would dream of causing. Yet we accept it from our high street stores.

Kiwis are simply conditioned to think we are not allowed a refund. How dare we buy something, not like it and fancy going to another shop with our money?

We approach sales assistants with our long-winded explanations of why we need to return an item and are grateful if they exchange it. In other countries people simply approach the counter and say "I'm returning this for a refund" and the till starts whirring.

Don't for one-minute think other countries are governed by tighter consumer law. They aren't. This is all based on goodwill. In the U.K. you can't demand a refund unless the goods are faulty (just like New Zealand) but it's rare to find a retailer who operates at the base level of the law. In New Zealand it's rare to find a retailer operating above the level of the law.

It all seems to depend on how hot the competition is.

An online clothes retailer like Ezibuy offers a 30-day return or refund, no questions asked. Glassons with its high street stores competes by giving a full refund or exchange within 14 days. They will even take back swimwear, so long as the tags and stickers are in place. It's obvious they know the young consumer market and their competitors.

What lies beneath your tree is now beyond change, but let's hope it contains a discrete envelope with the receipt, from a progressive retailer.

Janine Starks is a financial commentator with expertise in banking, personal finance and funds management. Opinions in this column represent her personal views. They are general in nature and are not a recommendation, opinion or guidance to any individuals in relation to acquiring or disposing of a financial product. Readers should not rely on these opinions and should always seek specific independent financial advice appropriate to their own individual circumstances.