“So his policy was no returns after Shabbos or a holiday”
Wow that’s a great idea. But it’s definitely true that people make the most out of an easy returning policy. There’s a shop in the U.K that is so easy to return to that people started calling it a Gemach. This creates a major Chilul Hashem when they see how many Jewish people “buy” stuff and return after using.
Side point- We Pasken Gezeilo Akum Ossur- It’s forbidden to steal from a Nochri.