AMZ, WMT, TGT: Extended Return Window Puts $44B Holiday Windfall in Jeopardy

The record $44.2 billion in sales generated by American retailers during the 2025 Cyber Week could be at risk due to extended return windows being offered by major retailers such as Amazon (AMZN), Walmart (WMT), and Target (TGT).Claim 70% Off TipRanks This Holiday SeasonUnlock hedge fund-level data and powerful investing tools for smarter, sharper decisions Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential During the five-day Thanksgiving-to-Cyber Monday holiday stretch that ran from November 27 to December 1, 2025, online sales by U.S. retailers rose by 7% from the $41.1 billion seen a year ago, fueled by heavy discounts on products. How Long Are the Extensions? However, retailers are offering longer return periods for orders made around this time. For instance, Amazon has given its customers until January 31, 2026, to return items purchased between November 1 and December 31, 2025. This expands the retail giant's regular 30-day return window. Walmart, the world's largest retailer by retail revenue, goes even further by putting the qualifying period between October 1 and December 31, 2025. Its customers also have until January 2026 to return purchased items, adding to the retailer's standard 90-day return period. While Target is sticking with its regular 90-day return policy, the Minnesota-based retailer — one of the largest in the U.S. — is giving its users the option of returning electronics and entertainment items purchased between November 1 and December 24, 2025, within 30 days, counting from December 26. However, Apple (APPL) and Beats products have only 14 days from the start date. Why Longer Return Windows Raise Risk With a survey by the National Retail Federation and UPS unit (UPS), Happy Returns, showing that retailers expect about one in six holiday purchases to come back, the extended return windows risk eating into the record holiday sales. This is because behaviors such as wardrobing, digital shoplifting, and bracketing remain prevalent. Wardrobing refers to the practice of purchasing a dress or other merchandise with the intent of using it once and then returning it for a full refund. While digital shoplifting explains the situation where a shopper lies about never receiving an order or saying it got stolen to avoid paying for it, bracketing describes the fraudulent habit of deliberately ordering multiple sizes or colors of the item to keep only one and sending the rest back for a refund. What Are the Best Retail Stocks to Buy in 2026? Using the TipRanks Stock Comparison tool, investors can check where analysts on Wall Street think several retail stocks, including those mentioned in this article, are headed in 2026. Please refer to the image below.