Chicago malls launch return service for some online purchases

By Robert Channick | Nov 29, 2016

A new service is giving shoppers a reason to go back to the mall: a one-stop shop to return unwanted online purchases.

Happy Returns, a California-based startup, has opened return stations at two Chicago-area malls — The Shops at North Bridge on Michigan Avenue and Fashion Outlets in Rosemont — where customers of five participating online merchants can bring in their online purchases and get full credit from the retailer on the spot.

The service, which launched in April in California, is looking to make online returns easier for customers and cheaper for retailers, while driving traffic to malls.

"There's more and more people shopping online and not going to the mall," said David Sobie, 44, co-founder and CEO of Happy Returns. "Here's a service that is useful for shoppers, but also creates a reason to go back into these retail environments."

Happy Returns has three mall locations in California. In addition to the two Chicago-area malls, the service also is opening at Tysons Corner Center in suburban Washington in a "strategic partnership" with mall owner Macerich, Sobie said.

The premise is that flush with return credit, online shoppers will look to spend money the old-fashioned way — at the malls.

"In many instances, a return is something that didn't work," said Sobie. "Now you're in an environment where you can actually solve that problem."

Online shopping continues to grow, with Adobe reporting Cyber Monday sales of $3.39 billion, a 10.2 percent increase over last year. More than 154 million consumers shopped over the weekend, with more shopping online than in-store for the first time, according to National Retail Federation spokeswoman Ana Serafin Smith.

A 2015 study by Aurora-based Shorr Packaging showed that about 30 percent of online holiday purchases get returned. While most online retailers offer free returns, the process can be cumbersome for consumers and expensive for retailers.

Located at the first-floor concierge desk in both Chicago malls, Happy Returns is a free process that requires no packing, boxing or shipping, and no waiting to receive store credit on the item.

"You walk up to the return bar, you hand your stuff to someone, you answer a few questions ... your refund is initiated immediately," Sobie said.

Meanwhile, Happy Returns cuts down on costs for retailers by aggregating returns and shipping them back in bulk.

There are five online retailers participating in the Happy Returns program: Tradesy, Eloquii, Shoes of Prey, Ribbed Tee and Machines for Freedom. Sobie is hoping to expand mall locations and participating retailers as the service continues to roll out.

"Our vision is return locations where you can do all of your returns — not just from a limited set of retailers," Sobie said. "Our service becomes more valuable with each retailer we add."

Write to Robert Channick at rchannick@chicagotribune.com

Article was originally published here.