I worked at a Bath and Body Works for a little bit while in college, and if I remember right we use to mark the items that were returned and they just got thrown out at the end of the night. There is a PF member that use to work at Sephora (she told me b/c I posted I thread about a cute make up kit I saw there) I should go find her and see if she can say what they do with the returns...
And here I am! lol! As I replied to you, when items are returned, if they have been used, they are put into a bit that is later cateloged and sent back to the district wharehouse. I
believe (although, I'm not 100% sure) that the items are sent back to the manufactors for at least a partial or maybe even full refund. Obviouslly, if the item hasn't been used, it's put back on the shelves. 9 times out of 10 though, the items are sent back. They sepnd a lot of money in returns since there is no return policy. Sometimes the girls (or boys if your Sephora has men there!) get kind of snotty about it, only because we see a LOT of stuff being returned that shouldn't. For example, I had a woman return over $1000 worth of products after christmas time, another woman who would buy itmes, return them days later and re-purchae the
same item, or, one woman brought back items she had pourchased over a year ago! And, make up has experation dates! So, if it's been over a year, and hasn't been used, we still have to return it. One of the reasons I left Sephora was because they were soooo wasteful (and the girls were really mean lol!). So, I'm sorry for any of you girls that have had bad experiences with Sephora returns! The girls there just see so much being returned, or, being purchase at TJ Maxx and beinn returned at Sephora, it's horrible!
Hope I answered your questiions! If not, feel free to ask, I'll check back and reply!