Marshalls makes bold change to return policy ahead of holidays

Marshalls, which TJX Companies owns, is prepping for a bustling holiday season as it sees increased consumer demand.

During the second quarter of this year, TJX Companies saw comparable sales at its TJ Maxx, Marshalls and Sierra stores increase by 4% year-over-year, according to its latest earnings report. 

Additionally, recent data from Placer.ai revealed that customer visits at Marshalls’ same-store locations increased by 5.2% compared to the same quarter in 2024. 

As the holiday season looms, Marshalls and other discount retailers are anticipating a surge in sales as more consumers seek to avoid high prices while shopping for gifts amid economic uncertainty. 

How U.S. consumers plan to shop for the holidays in 2025: 

• Consumers plan to spend $890.49 per person on average this year on holiday gifts, food, decorations and other seasonal items.
• Tariffs are a top concern for holiday shoppers, with 85% expecting tariffs to cause higher prices. 
• Also, 42%plan to shop at discount stores this holiday season, and 46% plan to gift clothing and accessories.  
• Additionally, 63% of consumers plan to wait until Thanksgiving weekend to do most of their holiday shopping, up from 59% last year.
  Source: National Retail Federation

“Despite consumers’ economic concerns, the winter holidays remain an important occasion to celebrate with loved ones,” said Prosper Executive Vice President of Strategy Phil Rist in a press release. “This is particularly true for those families with children who are expected to increase their gift budgets by more than $30 on average.”

Marshalls updates return policy for the holiday season

To prep for the holidays, Marshalls has quietly made a bold update to its return policy that all customers should be aware of.

First, in-store purchases made between Oct. 5 and Dec. 24, customers have until Jan. 25, 2026, to return those items if they are tagged, unwashed and unused. 

Customers who make online purchases between Oct. 5 and Dec. 24 have until Feb. 4, 2026, to return items.

Related: Target hopes to stop alarming customer behavior with bold offer

Additionally, Marshalls clarified in its return policy that returns to any of its stores are free; however, if customers return items by mail, they will incur a $11.99 fee. 

Marshalls’ normal return policy, which allows in-store items to be returned 30 days after purchase and online items to be returned 40 days after purchase, will go back into effect on Dec. 25.

Marshalls’ return policy update follows a growing consumer trend

Marshalls’ return policy change follows in the footsteps of retailers such as Target, Walmart and Amazon, which have all also extended their return windows into next year due to the holiday season. 

Consumers are expected to return almost $850 billion in merchandise in 2025, according to a recent survey from the National Retail Federation. Many retailers are relying on extended return windows to help manage holiday returns and fraudulent activity. 

Consumer behavior surrounding returns in 2025: 

• Retailers estimate that 15.8% of their annual sales will be returned this year.
• Additionally, retailers anticipate that 17% of their holiday sales will be returned, and 37% of retailers plan to extend their return windows for the holidays.
• Free returns are a significant factor for shoppers, with 82% citing them as a major consideration when making a purchase, up from 76% last year. 
• About 71% of consumers say they are less likely to shop with a retailer again after a poor experience with returning items, up from 67% in 2024.
  Source: National Retail Federation

“Returns are no longer the end point of a transaction,” said Katherine Cullen, NRF vice president of industry and consumer insights, in a press release. “They provide an opportunity for retailers to create a positive experience for customers and can translate to brand loyalty. Retailers are constantly evolving and working to meet customer expectations, and they recognize the importance the returns process plays.”

Related: Walmart quietly shrinks generous offer for holiday shoppers