That's actually false. If items are in NWT condition and are in season they go right back on the sales floor. Just go to your Nords store...if you see an item with the sales sticker that all items get when they are sold then you know it was a return. The items that go straight to Last Chance are items that are damaged or used, most other things filter through Nords Rack first.
They DON'T make money. However, they don't lose much money either.
Nordstrom loses about 3% (on average) of all returns. They are able to keep it down around 3% because of people exchanging the returns and their ability to sell the returned items at Nords Rack or Last Chance. They've made a business decision that customer loyalty is worth 3%.
No, they don't. They choose those jobs. They get an hourly rate plus commission. I'm not going to sit here and say they are paid amazingly well, but lets be honest, if returns stopped, Nords would not put that money towards employees pay, it would go straight to the shareholders.
This is exactly why Nords has kept the policy. They have calculated everything out and have decided that it is worthwhile in the end to keep customers loyal. Each store gets to decide what returns to accept at their discretion. As an Arizonan and someone who has been to Last Chance I can tell some crazy stories of things that are returned (Abercrombie, Gap, cigarette burns, paint stains, major damage, fake
Coach bags...you name it), but if a store chooses to accept the return, it is their choice. I do think Nords should tighten their policy to only Nords brands and only authentic items, but with the turnover in retail it will be hard to enforce.