Costco cuts return period on consumer electronics

In a break with its policy of allowing customers to return goods at any time for a full refund, Costco Wholesale Corp. is setting a firm return period of 90 days for consumer electronics.

The Issaquah, Wash.-based retailer on Monday introduced the revamped policy in its 109 California warehouses, and it plans to debut the changes in the rest of its 371 U.S. locations within the next five weeks, Chief Financial Officer Richard Galanti confirmed.

In general, Costco allows its customers an unlimited grace period to return purchases for a full refund. The only exception was a six-month deadline after the date of purchase for returning desktop computers. That unlimited timeframe still applies to Costco merchandise other than consumer electronics. Electronics goods purchased before the new 90-day policy goes into effect can be returned at any time.

Televisions, computers, cameras, camcorders, iPods, MP3 players and cell phones will fall under the new policy. Those products represented about 5 percent — or roughly $3 billion — of Costco’s $59 billion in sales from its fiscal year ended Sept. 3.

In turn, Costco will extend the manufacturer’s warranties on TVs and computers to two years from one.

“Our view is, even with these changes, we still have the best return policy in the retail industry,” Galanti said, adding that Costco does not impose a restocking charge on returned items.

•Nordstrom Inc. said Monday its fourth-quarter profit rose 22 percent in the period that includes the crucial holiday season. The results just missed Wall Street expectations, sending the clothing retailer’s shares lower in after-hours trading.

For the quarter ended Feb. 3, Nordstrom reported net income of $232.3 million, or 89 cents a share, up from $190.4 million, or 69 cents per share, for the same period last year.

Quarterly sales increased 15 percent to $2.6 billion, from $2.3 billion last year.

Same-store sales, which excludes stores that weren’t open a year ago, grew 8.3 percent.

Nordstrom shares fell $1.48, or 2.6 percent, to close at $56.60 on the New York Stock Exchange before the results were released, then dropped to $54.80 in after-hours trading. The stock has traded between $31.77 and $59.70 in the past year.

Nordstrom said its same-store sales exceeded the company’s plan, driven by sales across all major categories and a good response from holiday shoppers.