Target offers 1 year to return items from store brands like Cat & Jack kids’ clothes. Here’s how the unusually generous policy works.

• Target guarantees satisfaction for a year on owned-brand goods, including Cat & Jack kids clothes.
• Some shoppers stretch the policy to its limits to get cash back or new outfits.
• Retail experts explain the strategy behind Target’s policy and what would cause it to change.

The back-to-school shopping season might be winding down, but the demand for kids clothes is still going strong.

This is especially true at Target, where the company’s Cat & Jack brand has been one of the standout success stories of the retailer’s owned-brand merchandising strategy.

Within just two years of its launch in 2016, Cat & Jack sales boomed to more than $2 billion, and the brand now brings in more than $3 billion annually for Target.

Beyond the $4 T-shirts and $8 jeans and dresses, one thing that some parents have come to love about the brand is Target’s one-year satisfaction guarantee — an unusually generous policy in retail, especially as some retailers start to charge for returns.

Some have even posted videos on TikTok in which they return hundreds of dollars of well-worn apparel for cash and store credit.

Here’s Target’s policy and the strategy behind it.

What is the return policy for Target’s owned brands such as Cat & Jack?

In a way, the return policy helps Target make sales, as it incentivizes shoppers to buy its in-house brands. The total value of Cat & Jack returns is almost certainly a small percentage of the $3 billion in total yearly revenue generated by the brand.

Target is also a data juggernaut, and the cost of returns is accounted for in the price of an item, Herzog said: “Even if there is a bunch of returns coming back at 250 days, with the notation that the customer was not satisfied with the product, that store already has it priced in.”

In-store returns also naturally bring shoppers into the store, and the company says an increase in foot traffic over the past 12 consecutive quarters is driving the majority of sales growth.

In other words, a parent returning a Cat & Jack outfit is highly likely to buy a new one — or Mondo Llama art supplies or Good & Gather groceries or more.

Will Target change this policy?

Target keeps a close eye on consumer trends, and if it notices trouble brewing in the returns department, it could take steps to limit its policy. Some workers and customers have also said their locations are taking a stricter stance, especially when it comes to Cat & Jack products.

“Certainly, some people may abuse the returns policy, but Target has probably calculated that this is a very small proportion of revenue, so it doesn’t matter too much,” Saunders said. “That said, if too many people take unreasonable advantage, they may start clamping down.”

The notion of “satisfaction” can be an ethical gray area, even if it’s completely legal for a customer to say they’re unhappy with a purchase 360 days later, Herzog said.

“These are people admitting on social media that they were actually quite satisfied, but they are just finding a loophole and this return policy,” Herzog said. “If the return policy allows you to do that, I guess you can. But ethically, should you? I wouldn’t.”

Still, as far as Target is concerned, the official policy remains unchanged as the company says it remains focused on making it easier for shoppers to buy its products with confidence — especially from its private-label portfolio.

If you are a Target worker who wants to share your perspective, please contact Dominick Reuter via email or Signal at 646-768-4750. Responses will be kept confidential, and Insider strongly recommends you use a personal email and a nonwork device when reaching out.