So the company changed hands? That might explain a lot.
There's a big difference between very small adult sizes and very small children's sizes. Very few people wear very small adult sizes; everyone is a small child size at some point.
Ordering in advance isn't always workable for children, whose feet grow in somewhat unpredictable spurts. On the other hand, making the sales nonreturnable is fine. There aren't a lot of styles and colors even available for children, so that would be a nonissue.
It sounds like Showtime has now specialized in a particular market - a ladies' couture style market where high service levels and a large percentage of returns is expected, and supported through high prices and high margins.
That's not what I need, so I guess I'll turn to other channels that specialize in the children's market and try to get them to stock higher quality shoes instead.