JD Sports tackles 'vouchers for drugs' scam

JD SPORTS is ripping up its long-standing refund policy after discovering its gift vouchers are being used as currency for drug deals.

Executives at the Lancashire-based retailer, listed on the London Stock Exchange as John David Group, have been left stunned by a probe uncovering a network of fraud hitting stores for thousands of pounds.

JD Sports is one of the biggest retailers in Britain with annual sales of £460m. It targets 13-to 19-year-olds with 'sport fashion' and street culture labels such as Missy Elliott's Respect ME.

Its policy has been to hand over gift vouchers in exchange for returned goods without a receipt, in a sign of goodwill.

Industry magazine Retail Week revealed this policy is being scrapped and receipts will be demanded nationwide after the group found criminals were simply shoplifting clothes and taking them to another store. One suffered £2000 of fraud in one week late last year.

JD loss-control director Tim Edwards said: 'We became aware that people were coming to us with large piles of vouchers. We were naturally surprised.'

JD launched an investigation six months ago following a tip-off from police. Drug use is the biggest driver of shoplifting, which costs the British retail industry £2bn in lost sales and prevention costs a year.

Edwards said: 'We don't want to hinder the majority of our honest customers but we felt we had to try to put a stop to the systematic fraud against the company.'