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Some shops penalise the staff directly for returns they can't wiggle out of or suggest alternatives for so the money stays within the shop. Why they aren't suggesting store credit I have no idea. The overall impact that you might take offence to them doing that and boycott the shop is really lost on the head office people who set the targets.
Clockwise
Thanks both :)
The thing had a value of £50. I've spent a fair whack at their stores. My mind boggles at their approach on this one. Doubly bonkers given they've had the thing for two months since I returned it.