Growing retailer's return policy beats Costco's by a mile

One of the reasons Costco is such a popular store is its customer-first attitude.

You’ve probably noticed that while Costco stores themselves are massive, you won’t find the same selection of groceries and household products you will at a traditional supermarket.

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That’s because Costco purposely limits its inventory so it can not only get a leg up in negotiating prices, but also ensure better quality control.

Related: Trader Joe’s copies Costco, delights fans

It’s hard to vet every single product that goes onto your shelves when you’re housing 30,000 or 40,000 SKUs (stock keeping units) at a given time.

Costco, on the other hand, limits its inventory to around 4,000 SKUs. This allows the company to be more in tune with customers’ needs while ensuring that the items it puts on its shelves offer members great value for their money.

Costco’s return policy is downright outstanding

Another reason for Costco’s stellar reputation is that the warehouse club giant has one of the most generous return policies in all of retail.

With very few exceptions, Costco members can return any purchase at any time for a full refund.

Related: Costco members pounce after warehouse club makes pricing mistake

Bought a swimsuit for your toddler last summer and forgot about it? Just bring it back.

Purchased a bakery item that didn’t taste the way you expected it to, or fruit that went moldy a few days before its best-by date? Simply head over to customer service so they can issue you a refund.

Costco’s one rule in the context of returns is that to get your money back, you need to bring the problematic item back. Sometimes, this means hauling spoiled produce back to the store.

But it’s hard to argue with Costco’s return policy, given how overwhelmingly reasonable and accommodating it is.

One retailer’s return policy is even better than Costco’s

Aldi and Costco share a few similarities. Both companies limit their inventory for better prices and quality control. And both retailers pride themselves on outstanding customer service.

Like Costco, Aldi stands behind every product it puts on its shelves. And if you’re not satisfied with an Aldi purchase for any reason, you shouldn’t hesitate to bring it back to the store.

But Aldi goes beyond Costco when it comes to customer refunds.

Related: Aldi copies Trader Joe’s strategy that consumers love

At Costco, you can get your money back on a product that doesn’t meet your needs. But thanks to Aldi’s “Twice as Nice Guarantee,” if you buy a product you’re not completely satisfied with, Aldi will replace the product and refund your money.

All you need to do to take advantage of Aldi’s Twice as Nice Guarantee is bring back the product in its original packaging. It’s okay if it’s been opened or partially used, as long as you’re bringing at least a portion of it back.

You’ll also need a receipt for your purchase if you want your refund credited to the original form of payment. But if you don’t have a receipt, no problem. Aldi will issue you a gift card for the current price of the item you’re bringing back.

To be clear, Aldi’s Twice as Nice Guarantee has some fine print. It doesn’t apply to non-food items in the Aldi Finds aisle, national alcohol brands sold at the store, and non-quality issues.

But still, it’s one thing to get a hassle-free refund at Costco when a product fails to live up to your expectations. It’s another thing to get your money back plus a replacement product for free at Aldi.

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It’s policies like these that are no doubt helping Aldi grow into a major player in the grocery space.

Aldi has plans to open more than 225 new store locations in 2025. And its longer-term goal is to add 800 stores to its U.S. footprint by the end of 2028.

Maurie Backman owns shares of Costco.

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