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Fast Five Shorts | REI Goes After ‘Serial Returners’ · Omni Talk Retail

• 0:00
  REI
• 0:00
  wants
• 0:01
  to
• 0:01
  stop
• 0:01
  serial
• 0:01
  returners.
• 0:02
  According
• 0:02
  to
• 0:02
  Retail
• 0:03
  Dive,
• 0:03
  REI
• 0:04
  is
• 0:04
  now
• 0:05
  not
• 0:05
  accepting
• 0:05
  returns
• 0:06
  from
• 0:06
  a
• 0:06
  quote,
• 0:07
  small
• 0:07
  subset
• 0:08
  of
• 0:08
  its
• 0:09
  members
• 0:10
  who
• 0:10
  have
• 0:10
  repeatedly
• 0:11
  abused
• 0:11
  its
• 0:12
  return
• 0:12
  policies.
• 0:13
  Normally,
• 0:14
  REI
• 0:14
  members
• 0:15
  would
• 0:15
  have
• 0:15
  up
• 0:15
  to
• 0:16
  one
• 0:16
  year
• 0:16
  to
• 0:16
  return
• 0:16
  most
• 0:17
  items,
• 0:17
  while
• 0:17
  non
• 0:18
  members
• 0:18
  have
• 0:18
  90
• 0:19
  days.
• 0:19
  However,
• 0:20
  according
• 0:20
  to
• 0:20
  REI,
• 0:21
  a
• 0:21
  limited
• 0:21
  number
• 0:21
  of
• 0:22
  people
• 0:22
  have
• 0:22
  abused
• 0:22
  the
• 0:23
  company's
• 0:23
  return
• 0:23
  policy
• 0:24
  with
• 0:24
  an
• 0:25
  average
• 0:25
  return
• 0:26
  rate
• 0:26
  of
• 0:26
  79%.
• 0:28
  This
• 0:29
  particular
• 0:29
  group
• 0:30
  returned
• 0:30
  $2,400
• 0:31
  worth
• 0:31
  of
• 0:31
  gear
• 0:32
  in
• 0:32
  the
• 0:32
  past
• 0:32
  year
• 0:33
  and
• 0:33
  $1,400
• 0:34
  of
• 0:34
  that
• 0:35
  product
• 0:35
  was
• 0:35
  used,
• 0:36
  a
• 0:36
  spokesperson
• 0:37
  said.
• 0:37
  As
• 0:37
  a
• 0:37
  result,
• 0:38
  while
• 0:38
  those
• 0:38
  members
• 0:38
  may
• 0:38
  still
• 0:39
  shop
• 0:39
  at
• 0:39
  rei,
• 0:40
  the
• 0:40
  company
• 0:40
  said
• 0:40
  they
• 0:40
  will
• 0:40
  no
• 0:41
  longer
• 0:41
  be
• 0:41
  allowed
• 0:42
  to
• 0:42
  make
• 0:42
  returns
• 0:42
  or
• 0:43
  exchanges.
• 0:44
  Chris,
• 0:44
  something
• 0:45
  about
• 0:45
  this
• 0:45
  headline
• 0:46
  really
• 0:46
  spoke
• 0:46
  to
• 0:46
  you
• 0:46
  this
• 0:47
  week.
• 0:47
  You
• 0:47
  were
• 0:47
  all
• 0:48
  in
• 0:48
  on
• 0:48
  it.
• 0:49
  It
• 0:49
  was
• 0:49
  actually
• 0:50
  a
• 0:51
  was
• 0:51
  too.
• 0:51
  This
• 0:51
  is
• 0:51
  their
• 0:51
  put
• 0:52
  you
• 0:52
  on
• 0:52
  the
• 0:52
  spot
• 0:52
  question.
• 0:54
  So
• 0:54
  I
• 0:54
  want
• 0:54
  to
• 0:54
  know
• 0:55
  first
• 0:55
  of
• 0:55
  all,
• 0:56
  why
• 0:56
  this
• 0:56
  was
• 0:56
  so
• 0:56
  intriguing
• 0:57
  to
• 0:57
  you.
• 0:57
  And
• 0:57
  then
• 0:57
  second,
• 0:58
  let
• 0:58
  get
• 0:58
  hit
• 0:59
  you
• 0:59
  with
• 0:59
  A&M's
• 0:59
  question,
• 1:00
  which
• 1:00
  is
• 1:01
  while
• 1:02
  on
• 1:02
  the
• 1:02
  surface
• 1:02
  this
• 1:03
  seems
• 1:03
  like
• 1:04
  a
• 1:04
  potential
• 1:04
  customer
• 1:05
  turn
• 1:05
  off
• 1:06
  policy,
• 1:06
  by
• 1:06
  the
• 1:07
  numbers
• 1:07
  given,
• 1:07
  this
• 1:07
  impacts
• 1:08
  less
• 1:08
  than
• 1:08
  5,000
• 1:09
  REI
• 1:09
  customers,
• 1:10
  accounting
• 1:11
  for
• 1:11
  about
• 1:12
  $12
• 1:12
  million
• 1:13
  in
• 1:13
  returns
• 1:14
  and
• 1:13
  3
• 1:15
  million
• 1:15
  in
• 1:15
  non
• 1:15
  return
• 1:16
  sales.
• 1:17
  With
• 1:17
  that
• 1:17
  in
• 1:17
  mind,
• 1:17
  Chris,
• 1:18
  does
• 1:18
  your
• 1:18
  mind
• 1:18
  go
• 1:19
  to
• 1:19
  why
• 1:20
  bother
• 1:20
  or
• 1:21
  does
• 1:21
  it
• 1:21
  go
• 1:21
  to
• 1:22
  why
• 1:22
  not?
• 1:25
  Oh
• 1:25
  wow,
• 1:26
  100%
• 1:26
  why
• 1:27
  not?
• 1:27
  I
• 1:27
  mean
• 1:27
  those
• 1:27
  numbers,
• 1:28
  12
• 1:28
  million
• 1:28
  in
• 1:28
  returns,
• 1:29
  $3
• 1:29
  million
• 1:30
  in
• 1:30
  sales,
• 1:30
  like
• 1:31
  that's,
• 1:31
  that's,
• 1:31
  that's,
• 1:32
  that's
• 1:32
  a
• 1:32
  huge
• 1:32
  delta.
• 1:33
  Like
• 1:33
  no,
• 1:34
  I
• 1:34
  know,
• 1:34
  no,
• 1:34
  no
• 1:34
  amount
• 1:35
  of
• 1:35
  customers
• 1:35
  should
• 1:35
  be
• 1:35
  costing
• 1:36
  me
• 1:36
  that
• 1:36
  amount
• 1:36
  of
• 1:36
  money.
• 1:37
  $12
• 1:37
  million
• 1:37
  is
• 1:38
  a
• 1:38
  lot
• 1:38
  of
• 1:38
  money
• 1:38
  for
• 1:38
  people
• 1:39
  and
• 1:39
  a
• 1:39
  lot
• 1:39
  of
• 1:39
  money
• 1:39
  that
• 1:40
  can
• 1:40
  flow
• 1:40
  back
• 1:40
  in
• 1:40
  the
• 1:40
  operations.
• 1:41
  So
• 1:41
  like,
• 1:42
  I
• 1:42
  don't
• 1:42
  know,
• 1:42
  I
• 1:42
  don't
• 1:42
  sneeze
• 1:43
  at
• 1:43
  that.
• 1:43
  But.
• 1:44
  So
• 1:44
  yeah,
• 1:44
  I
• 1:45
  think
• 1:45
  I'm
• 1:45
  all
• 1:45
  for
• 1:46
  REI
• 1:46
  doing
• 1:46
  this,
• 1:47
  but
• 1:47
  the
• 1:47
  reason
• 1:47
  I
• 1:47
  like
• 1:48
  this
• 1:48
  story,
• 1:48
  and
• 1:48
  if
• 1:48
  I
• 1:49
  step
• 1:49
  back
• 1:49
  30,000
• 1:50
  foot
• 1:50
  view
• 1:50
  of
• 1:51
  retail,
• 1:52
  I
• 1:52
  think
• 1:52
  it,
• 1:52
  it
• 1:53
  goes
• 1:53
  into
• 1:53
  showing
• 1:54
  us
• 1:54
  again
• 1:54
  as
• 1:55
  this
• 1:55
  is
• 1:55
  becoming
• 1:55
  a
• 1:55
  recurring
• 1:56
  theme
• 1:56
  on
• 1:56
  the
• 1:56
  show
• 1:56
  this
• 1:57
  year.
• 1:57
  It
• 1:58
  shows
• 1:58
  you
• 1:58
  the
• 1:58
  power
• 1:58
  of
• 1:59
  data
• 1:59
  by
• 1:59
  way
• 1:59
  of
• 2:00
  a
• 2:00
  membership
• 2:00
  program,
• 2:01
  because
• 2:01
  REI
• 2:01
  is
• 2:02
  a
• 2:02
  membership
• 2:02
  program.
• 2:03
  So
• 2:03
  it
• 2:03
  gives
• 2:03
  them
• 2:04
  the
• 2:04
  flexibility
• 2:04
  to
• 2:04
  take
• 2:05
  action
• 2:05
  like
• 2:05
  this
• 2:05
  because
• 2:06
  they
• 2:06
  know
• 2:06
  who
• 2:06
  those
• 2:06
  individual
• 2:07
  customers
• 2:07
  are.
• 2:08
  So
• 2:08
  that
• 2:08
  gets
• 2:08
  me
• 2:08
  thinking.
• 2:09
  Anne,
• 2:09
  we're
• 2:10
  hearing
• 2:10
  more
• 2:11
  stories
• 2:11
  about
• 2:11
  how
• 2:11
  returns
• 2:12
  are
• 2:12
  a
• 2:12
  problem.
• 2:12
  More
• 2:12
  retailers
• 2:13
  are
• 2:13
  starting
• 2:13
  to
• 2:14
  charge
• 2:14
  for
• 2:14
  them
• 2:14
  even.
• 2:15
  And
• 2:15
  so
• 2:15
  it
• 2:15
  makes
• 2:16
  me
• 2:16
  ask
• 2:16
  another
• 2:16
  question,
• 2:17
  which
• 2:17
  is
• 2:17
  with
• 2:17
  all
• 2:18
  these
• 2:18
  subscription
• 2:18
  programs
• 2:19
  coming
• 2:19
  online
• 2:19
  like
• 2:19
  Walmart
• 2:20
  plus,
• 2:21
  what
• 2:21
  angle
• 2:21
  do
• 2:22
  they
• 2:22
  start
• 2:22
  to
• 2:22
  take
• 2:22
  with
• 2:23
  returns?
• 2:23
  Like,
• 2:23
  does
• 2:23
  a
• 2:23
  Walmart
• 2:24
  plus
• 2:24
  member
• 2:24
  get
• 2:25
  an
• 2:25
  extended
• 2:25
  return
• 2:26
  policy?
• 2:26
  Do
• 2:26
  the
• 2:26
  windows
• 2:26
  get
• 2:27
  shorter
• 2:27
  for
• 2:27
  Non
• 2:28
  Walmart
• 2:28
  shoppers,
• 2:29
  or
• 2:29
  any
• 2:29
  loyalty
• 2:30
  program
• 2:30
  member,
• 2:30
  for
• 2:31
  that
• 2:31
  matter,
• 2:32
  at
• 2:32
  any
• 2:32
  retailer.
• 2:33
  So
• 2:33
  the
• 2:33
  headline,
• 2:34
  to
• 2:34
  me,
• 2:34
  just
• 2:35
  presents,
• 2:35
  ultimately,
• 2:35
  a
• 2:36
  new
• 2:36
  canvas
• 2:36
  on
• 2:37
  rich
• 2:37
  retailers
• 2:37
  can
• 2:38
  paint
• 2:38
  something
• 2:39
  we
• 2:39
  haven't
• 2:39
  seen
• 2:40
  before.
• 2:40
  And
• 2:40
  that's
• 2:41
  why
• 2:41
  I
• 2:41
  like
• 2:41
  this
• 2:41
  headline
• 2:41
  so
• 2:42
  much.
• 2:42
  It
• 2:42
  gets
• 2:42
  my
• 2:42
  mind
• 2:43
  just
• 2:43
  going
• 2:43
  in
• 2:43
  new
• 2:44
  directions.
• 2:44
  But
• 2:45
  I
• 2:45
  don't
• 2:45
  know.
• 2:46
  I
• 2:46
  hope
• 2:46
  you
• 2:46
  don't
• 2:46
  rate
• 2:47
  on
• 2:47
  my
• 2:47
  parade
• 2:47
  on
• 2:47
  this
• 2:47
  one.
• 2:48
  I
• 2:48
  kind
• 2:48
  of
• 2:48
  worried
• 2:49
  that
• 2:49
  you
• 2:49
  might,
• 2:49
  but
• 2:49
  maybe
• 2:50
  we'll
• 2:50
  just
• 2:50
  be
• 2:50
  friendly
• 2:51
  again
• 2:51
  on
• 2:51
  this
• 2:51
  show.
• 2:51
  I
• 2:51
  don't
• 2:52
  know.
• 2:52
  What's
• 2:52
  your
• 2:52
  take?
• 2:53
  No,
• 2:53
  I
• 2:53
  mean,
• 2:54
  I
• 2:54
  think
• 2:54
  this
• 2:54
  is
• 2:54
  a
• 2:55
  definite.
• 2:55
  Why
• 2:55
  not?
• 2:56
  I
• 2:56
  mean.
• 2:56
  Yeah.
• 2:57
  Okay.
• 2:57
  First,
• 2:57
  I
• 2:58
  was
• 2:58
  trying
• 2:58
  to
• 2:58
  consider,
• 2:59
  like,
• 2:59
  what
• 2:59
  are
• 2:59
  the
• 2:59
  cons
• 3:00
  here?
• 3:00
  You
• 3:00
  have
• 3:01
  REI
• 3:01
  that's
• 3:02
  in
• 3:02
  an
• 3:02
  increasingly
• 3:03
  competitive
• 3:04
  space
• 3:04
  with
• 3:05
  Dick's
• 3:05
  Sporting
• 3:05
  Goods,
• 3:05
  Public
• 3:06
  Lands
• 3:06
  coming
• 3:06
  online
• 3:07
  and
• 3:07
  expanding
• 3:07
  their
• 3:08
  stores.
• 3:08
  Bass
• 3:08
  Pro
• 3:09
  Shops
• 3:09
  kind
• 3:09
  of
• 3:09
  coming
• 3:09
  into
• 3:10
  favor
• 3:10
  with
• 3:11
  Next
• 3:11
  Generation
• 3:11
  of
• 3:12
  customer.
• 3:13
  But
• 3:13
  I
• 3:13
  really
• 3:14
  don't
• 3:14
  think
• 3:14
  it's
• 3:14
  that
• 3:15
  big
• 3:15
  of
• 3:15
  a
• 3:15
  deal.
• 3:15
  I
• 3:15
  think
• 3:16
  this
• 3:16
  is
• 3:16
  just
• 3:16
  some
• 3:17
  bad
• 3:17
  actors
• 3:17
  who
• 3:17
  have
• 3:18
  really
• 3:18
  screwed
• 3:18
  things
• 3:19
  up.
• 3:19
  Like,
• 3:19
  it
• 3:19
  reminds
• 3:19
  me
• 3:19
  of
• 3:20
  being
• 3:20
  in
• 3:20
  Catholic
• 3:20
  school
• 3:21
  when
• 3:21
  one
• 3:21
  of
• 3:21
  our
• 3:22
  teachers,
• 3:22
  Sister
• 3:23
  Ann
• 3:23
  Marie,
• 3:23
  she
• 3:24
  let
• 3:24
  us
• 3:24
  chew
• 3:24
  gum,
• 3:24
  right?
• 3:25
  But
• 3:25
  then
• 3:25
  some
• 3:26
  jerks
• 3:26
  in
• 3:26
  the
• 3:26
  class
• 3:27
  started
• 3:27
  putting
• 3:27
  it
• 3:27
  under
• 3:28
  church
• 3:28
  pews.
• 3:29
  They
• 3:29
  put
• 3:29
  it
• 3:29
  under
• 3:30
  their
• 3:30
  desks,
• 3:30
  and
• 3:31
  they
• 3:31
  put
• 3:31
  it
• 3:31
  on
• 3:31
  Sister
• 3:31
  Anne
• 3:32
  Marie's
• 3:32
  chair.
• 3:32
  And
• 3:32
  you
• 3:33
  know
• 3:33
  what?
• 3:33
  Then
• 3:33
  we
• 3:34
  couldn't
• 3:34
  chew
• 3:34
  gum
• 3:34
  anymore.
• 3:35
  So
• 3:35
  that's
• 3:36
  what
• 3:36
  happens.
• 3:36
  And
• 3:36
  if
• 3:37
  you're
• 3:37
  going
• 3:37
  to
• 3:37
  abuse
• 3:37
  a
• 3:38
  policy
• 3:38
  like
• 3:38
  this,
• 3:39
  I
• 3:39
  think
• 3:39
  that
• 3:40
  this
• 3:40
  is
• 3:40
  just.
• 3:40
  We're
• 3:41
  going
• 3:41
  to
• 3:41
  start
• 3:41
  to
• 3:41
  see,
• 3:41
  like
• 3:42
  you
• 3:42
  said,
• 3:42
  that
• 3:42
  we're
• 3:42
  going
• 3:42
  to
• 3:42
  start
• 3:43
  to
• 3:43
  see
• 3:43
  more
• 3:43
  retailers
• 3:44
  start
• 3:44
  to
• 3:44
  draw
• 3:44
  a
• 3:44
  hard
• 3:45
  line
• 3:45
  in
• 3:45
  the
• 3:45
  sand
• 3:46
  about
• 3:46
  their
• 3:47
  return
• 3:47
  policies.
• 3:48
  And
• 3:48
  I
• 3:48
  think
• 3:48
  REI
• 3:49
  is
• 3:49
  in
• 3:49
  a
• 3:49
  unique
• 3:50
  position,
• 3:50
  like,
• 3:51
  from
• 3:51
  a
• 3:51
  PR
• 3:52
  standpoint,
• 3:52
  to
• 3:52
  be
• 3:52
  like,
• 3:53
  look,
• 3:53
  you
• 3:53
  can't
• 3:54
  return
• 3:54
  any
• 3:54
  things
• 3:54
  anymore,
• 3:55
  but
• 3:55
  you
• 3:55
  can
• 3:55
  go
• 3:55
  to
• 3:55
  REI
• 3:56
  resale.
• 3:57
  And
• 3:57
  maybe
• 3:57
  if,
• 3:58
  like,
• 3:58
  if
• 3:58
  you're
• 3:58
  going
• 3:58
  to
• 3:58
  use
• 3:59
  these
• 3:59
  products
• 3:59
  for
• 3:59
  a
• 4:00
  year
• 4:00
  and
• 4:00
  then
• 4:00
  return
• 4:01
  them,
• 4:01
  like,
• 4:02
  here's
• 4:02
  an
• 4:02
  opportunity
• 4:03
  for
• 4:03
  you
• 4:03
  to
• 4:03
  get
• 4:03
  10,
• 4:04
  20,
• 4:04
  40%
• 4:05
  back
• 4:05
  on
• 4:05
  that
• 4:05
  purchase
• 4:06
  by
• 4:06
  putting
• 4:07
  it
• 4:07
  into
• 4:07
  the
• 4:07
  resale
• 4:07
  program.
• 4:08
  We're
• 4:08
  done
• 4:08
  with
• 4:09
  you.
• 4:09
  Stop
• 4:09
  abusing
• 4:10
  our
• 4:10
  returns.
• 4:10
  Like,
• 4:11
  I
• 4:11
  think.
• 4:11
  I
• 4:11
  think
• 4:12
  that's
• 4:12
  what
• 4:12
  we're
• 4:12
  looking
• 4:13
  at
• 4:13
  here
• 4:13
  with
• 4:13
  this
• 4:14
  story.
• 4:15
  Yeah.
• 4:15
  And
• 4:15
  for
• 4:15
  all
• 4:15
  intents
• 4:16
  and
• 4:16
  purposes,
• 4:16
  REI's
• 4:17
  return
• 4:17
  policy,
• 4:17
  when
• 4:17
  you
• 4:17
  read
• 4:17
  it,
• 4:18
  is
• 4:18
  pretty
• 4:18
  dang
• 4:19
  generous.
• 4:19
  So,
• 4:19
  like,
• 4:20
  they
• 4:20
  give
• 4:20
  you
• 4:20
  a
• 4:20
  lot
• 4:20
  of
• 4:20
  grace.
• 4:21
  So.
• 4:21
  So
• 4:21
  they're
• 4:22
  just
• 4:22
  basically
• 4:22
  saying,
• 4:22
  we
• 4:22
  caught
• 4:23
  you,
• 4:24
  your
• 4:24
  sister
• 4:24
  Ann
• 4:24
  Marie
• 4:25
  caught
• 4:25
  you,
• 4:25
  and
• 4:26
  you
• 4:26
  just
• 4:26
  got
• 4:26
  to
• 4:27
  deal
• 4:27
  with
• 4:27
  it.
• 4:27
  So,
• 4:27
  yes,
• 4:28
  any
• 4:28
  Catholic
• 4:28
  school
• 4:29
  analogy
• 4:29
  is
• 4:29
  always
• 4:30
  wonderful,
• 4:30
  and
• 4:30
  nice
• 4:31
  job.