Swell Body & Boutique - not so swell !!

I stopped in to Swell Body & Boutique and  purchased  an item for a 2-year old,  a little dress for $79.  When my niece tried the dress on her baby, part of the decorative stitching on the hem came off.  When I tried to exchange it, I was told by the woman who sold it to me, who happened to be the mother of the store's owner,  "I didn't sell it to you like that."  I explained how the stitching became loose, and also that it wasn't the right size, and yet she did not budge except to say that I could bring it elsewhere to be repaired.
In a follow-up conversation with the owner (Emily), I calmly explained my story, and was told that she believes what her Mom said about the condition of the dress at the time of purchase. I agreed that the stitching  was not hanging when I purchased the $79.00 dress with the decorative stitching  on the hem, but did not expect the stitching to become undone, when the dress was only tried on one time. The owner also said that perhaps I was more used to shopping at stores like the GAP.
All in all, it was a customer service nightmare.  There was no option of return, no flexibility for a solution or offer to assist with repairing the faulty stitching, no offer for a store credit, and a snooty implication that I was not being truthful.  I understood the exchange policy of no cash refunds, but on a defective item, I did expect the owner to stand by her boutique items and at the very least offer a store credit.  Contrary to the owner's statement,  I am not unused to boutique shopping, but have never had such a negative experience!  Beware, everyone...It's not worth the trip.