Retail

Bed Bath & Beyond alters generous return policy

Rebecca Ungarino
WATCH LIVE
Getty Images

Bed Bath & Beyond has modified the company's return policy, effective April 20.

The home goods chain, which operated 1,016 U.S. locations as of May 2014, announced earlier this week that it will deduct 20 percent from a returned item's value for customers who do not provide a receipt, or whose purchase could not be identified through the store's transaction records.

Read More Wait! Before you build that app, consider this...

Previously, Bed Bath & Beyond offered a full refund for store credit or an exchange even in the case that a customer did not provide a receipt.

This modification also applies to Buybuy Baby and Harmon Face Values chains, also owned by Bed Bath & Beyond.

The retail play: L Brands & Target
VIDEO3:1603:16
The retail play: L Brands & Target

"We have been providing advance notice of the upcoming change to our customers via signs and handouts in our stores, encouraging customers to hold onto their receipts to avoid being impacted by this change in any manner," the company told CNBC in a statement.

Read More Retail earnings big on Wall Street for traders

Customers making returns with a gift receipt or returning items from their gift registry, for which the store does have a record, will not be affected by this change.

Meanwhile, retail giant Target announced a change to their return policy earlier this week, extending the return window to one year from the date of purchase with a receipt. Previously, the window was 90 days.