Wardrobing: Is It Really All That Bad?

In a 2008 survey, about 64% of U.S. merchants reported experiencing “Wardrobing” behavior by consumers buying their items (Barnard 2009). An item is said to have been “Wardrobed” when it is bought by a consumer; used for a short time; and then returned to the store as if it were unused, for a full or partial refund (Enkoji, 2009, Segal 2010).1 Products such as a Halloween costume, a set of tools for a one-time home improvement job, a wedding dress, a video projector for use in a business meeting, or a TV to watch the Super Bowl can be Wardrobed, for example. Since these returned products cannot later be sold as new, many retailers resort to identifying them as “open-box” items when they are put back on the retail shelf, with a concomitant requirement to lower the price of these products.