The Clark Howard Podcast: Retail—Point Of No Returns & The Home Improvement Market Now (07.16.25)

Release Date: July 16, 2025
Host: Clark Howard

Introduction

In the July 16, 2025 episode of The Clark Howard Podcast, host Clark Howard delves into two pressing topics affecting consumers today: the escalating issue of product returns in the retail sector and the current state of the home improvement market amid economic uncertainties. Through insightful discussions, personal anecdotes, and listener interactions, Clark provides valuable advice to help listeners navigate these complex financial landscapes.

The Surge of Returns in Retail

Clark opens the episode by addressing a significant trend disrupting the retail industry: the dramatic increase in product returns. With returns nearing a staggering trillion dollars annually, Clark highlights the challenges retailers face in managing this surge.

“Returns are creeping up towards a trillion dollars a year total for retailers. And as best anybody can guesstimate, you've got somewhere 15 to 20% of those that are anywhere from completely fraudulent to people gaming the system.”
— Clark Howard [02:30]

Key Points:

• Fraudulent Returns: Clark estimates that 15-20% of returns may involve fraudulent activities or system gaming, posing a severe dilemma for retailers who must balance policies to protect honest customers while deterring dishonest behavior.

• Online vs. In-Store Returns: A notable shift is occurring where online purchases, traditionally cheaper, are now experiencing higher return rates compared to in-store purchases. This trend may lead to reverse price discrimination, potentially making physical store prices more competitive than online counterparts in certain categories.

• Policy Adjustments: Retailers are responding by tightening return policies, especially during peak seasons like Christmas, and experimenting with options where consumers can choose between lower prices without return rights or higher prices with the flexibility to return products.

“You may actually see lower costs on items in the physical store than you do in some categories buying them online.”
— Clark Howard [05:00]

Personal Anecdotes: Navigating Return Troubles

Clark shares personal experiences to illustrate the complexities of return policies, particularly with major online retailers like Amazon.

The Stained Blanket Fiasco:

Clark recounts purchasing a blanket from Amazon that arrived stained. Despite following the return process, Amazon failed to acknowledge the return, leaving Clark out $36.

“Amazon says they never got it and charged me back for it. And when you drop off at Whole Foods, they don’t give you a receipt that you returned it.”
— Clark Howard [06:25]

This story underscores the frustrations consumers may face when return systems falter, emphasizing the importance of vigilance and documentation during returns.

Listener Interaction:

A listener named Justin from Virginia shares an unusual return incident where a brand-new MacBook Pro was mistakenly shipped instead of soy sauce bowls ordered for a wedding. Clark advises immediate contact with Amazon customer service to rectify the mix-up.

“They should contact Amazon and see if they can work this out because obviously, soy bowls were a lot cheaper than a MacBook Pro.”
— Clark Howard [08:10]

The Home Improvement Market Amid Economic Uncertainty

Transitioning from retail returns, Clark examines the current landscape of the home improvement sector, which has been significantly impacted by ongoing tariff-related economic uncertainties.

Current Market Challenges:

• Weak Sales Reports: Suppliers within the home rental industry, including giants like Home Depot, are reporting weaker sales compared to the previous year, signaling a cautious consumer base hesitant to invest in home projects.

• Cost Dynamics: While material costs remain somewhat elevated due to tariffs, the primary cost drivers now are labor and company markups. Fortunately, with suppliers eager for business, consumers may find more favorable quotes for labor-intensive projects.

“This is actually a better time than in recent times for you to look at doing a home renovation because so much of it is the labor cost and the markup that the company puts on the work it does. If they're hungrier for work, the quotes you get are better.”
— Clark Howard [16:00]

Clark's Advice:

He advises homeowners to assess their financial stability—ensuring debt levels are manageable and savings are secure—before embarking on renovation projects. If these conditions are met, now might be an opportune time to undertake improvements, capitalizing on the current market's favorable pricing for labor.

“Almost every improvement you can do to your house will cost you more than the increase in value it will cause for your house. So this is a lifestyle choice to do improvements to your home.”
— Clark Howard [18:00]

Listener Questions and Expert Advice

Throughout the episode, Clark addresses several listener-submitted questions, providing tailored financial guidance.

1. Selling a Vacant Lot Safely (Jolene from Missouri)

Question: Jolene seeks advice on selling a vacant lot located in another state, concerned about scams and safe transaction methods.

Clark's Response:

Clark advises against responding to unsolicited purchase offers and recommends hiring a reputable real estate agent specialized in land sales. He emphasizes the importance of professional assistance in ensuring a secure and fair transaction.

“If you want to sell the lot, you need to hire a real estate agent who does land sales regular.”
— Clark Howard [09:15]

2. Electric Vehicle Upgrade Dilemma (Steve from South Carolina)

Question: Steve is torn between upgrading his 2023 Bolt EV2 LT with 22,000 miles to a newly redesigned 2025 Tesla Model Y, concerned about parts availability and tax incentives.

Clark's Response:

Clark acknowledges the significant technological advancements in the Tesla Model Y, labeling the upgrade as a "lifestyle purchase." He notes that while the Bolt is reliable, the Tesla offers superior features and performance, making the upgrade a favorable deal given current discounts and the available tax credit.

“The technology difference is so much between the 2020 Bolt and a 2025 Tesla Model Y that it's almost like comparing apples and oranges.”
— Clark Howard [11:40]

3. Optimal Timing for Pension Withdrawal (Mark from Florida)

Question: Mark, aged 63, contemplates when to start taking his pension, planning to retire in two years. His wife worries about the pension benefits if something were to happen to him before he starts drawing it.

Clark's Response:

Clark advises confirming the pension's survivor benefits provisions, as most plans offer options like life of you plus 50% or 100% to cover a spouse. He recommends waiting the additional two years if financial circumstances allow, as it will result in a more substantial pension upon retirement.

“If you were to out of the blue, hopefully not happen die before, you would take a pension at 65. As long as she's already protected in the plan document for the pension, I would wait the two years.”
— Clark Howard [20:01]

4. Investing with a CD Ladder (George from Massachusetts)

Question: George seeks advice on investing $15,000 using a CD ladder strategy and inquires about the best institutions offering competitive rates.

Clark's Response:

Clark explains the CD ladder concept—dividing the investment into equal parts across multiple Certificates of Deposit with varying maturities to optimize interest rates while maintaining liquidity. He suggests using resources like Bankrate to find top-performing institutions and recommends consolidating the CDs within a single bank to simplify management.

“A one year CD, two year CD, three year, four year, five year. And normally when you go out longer, you're going to get a significantly higher interest rate on the CD.”
— Clark Howard [22:24]

5. Freezing Credit While Retiring Abroad (Bob from South Dakota)

Question: Bob plans to retire outside the United States and has his credit frozen. He is concerned about potential issues with unfreezing his credit in the future.

Clark's Response:

Clark reassures Bob that freezing and unfreezing credit from abroad is straightforward, provided he maintains his US-based financial accounts and follows standard procedures. He also encourages connecting with expatriate communities for support in navigating international financial arrangements.

“It’s going to be really easy for you to freeze and thaw from outside the United States. There’s no reason, Bob, I know of at all that you would have trouble with that.”
— Clark Howard [24:08]

Conclusion

Clark Howard's comprehensive exploration of the rising trend in retail returns and the dynamics of the home improvement market offers listeners actionable insights. By addressing real-world challenges and providing thoughtful advice, Clark empowers consumers to make informed financial decisions amidst evolving economic landscapes.

“Have a great one. And we'll see you next on Clark Stinks.”
— Clark Howard [27:52]

Notable Quotes

• “Returns are creeping up towards a trillion dollars a year total for retailers.” — Clark Howard [02:30]
• “You may actually see lower costs on items in the physical store than you do in some categories buying them online.” — Clark Howard [05:00]
• “Almost every improvement you can do to your house will cost you more than the increase in value it will cause for your house.” — Clark Howard [18:00]

This episode serves as an essential guide for consumers navigating the complexities of retail practices and home improvement investments, underpinned by Clark Howard's expertise in empowering individuals to achieve financial well-being.