Damaged Retail Merchandise SOP

Procedure #: HB SOP 64

Function: Management Policies

Implementation Date: 03282024

Policy/Purpose:  From time to time we will find that Retail Merchandise has been damaged through a variety of reasons including stains, holes, thread coming loose, dents, or other reasons that do not allow us to sell a particular item to our guests. In such cases, it is crucial to remove the damaged merchandise from our sales floor promptly to optimize the customer shopping experience. By implementing inventory management best practices, we can ensure that only quality items are available for sale, thereby maintaining our brand reputation and customer satisfaction. Regular audits of our inventory will help us identify trends in product damage and adjust our purchasing strategies accordingly.

Procedures:

1. If a retail item has been found to be damaged, it should be immediately removed from behind the merchandise counter, and removed from the POS inventory.
2. This item should be flagged with a note, listing the item, damage information, date discovered, and person discovering.
3. If a guest has previously purchased an item and has found damage, they should be able to provide a receipt, or date of purchase for the manager to verify in the POS system
   1. No refunds or trades will be issued without verifying the purchase.  Any purchase outside of 30 days should not be refunded or traded for another item without General Manager approval or above.
4. The General Manager should bring this item to the weekly leadership meeting on Wednesday and then submit it to the Operations Manager, who will determine the next best use for the damaged product.

Summary of Revisions on 3/28/24: 4) Updated to include bringing items to the weekly leadership meeting on Wednesday and to the Operations manager.