Tuesday, September 17, 2013

Wardrobing a Billion Dollar Problem?

Since I don't usually buy expensive clothes I had no idea how big a problem this is.

Bloomingdale’s, owned by Macy’s Inc. (M), is using the tactic to combat a practice known as “wardrobing” -- buying clothes and using them once -- a form of return fraud, which the National Retail Federation estimates cost the industry $8.8 billion last year. Curtailing such practices is complicated because while stores want to protect themselves, they risk demonstrating a mistrust of customers who are paying thousands of dollars for garments. It’s a gamble some chains, including Nordstrom Inc. (JWN), aren’t taking.

Too bad there isn't a more high tech way of combating this problem. Maybe a special RFID tag that senses if someone puts on the garment outside of the store. Something to do with biometrics would be interesting. Like something that senses a heartbeat or sweat when it is placed on the body.

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