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One morning, one of the twin brothers went for a haircut. In the evening, his brother went to the same barbershop and the barber was astonished. He remembered having cut the young man’s hair and now he had returned / was returning to the shop for another haircut. So he exclaimed to the young man, “Sir, I’ve not seen a person’s hair grow so fast. You came this morning and now you’re here again!”
1. Is 'had returned' more appropriate than 'was returning'?
2. Is 'So he exclaimed to the young man, ...' better than 'So he exclaimed, ...' ?
1 Both are possible IMO. I don't think the past perfect is more appropriate. In fact, I would be more likely to use the progressive form here in the context of a jokey narrative.
2 It's clear who he's speaking to, so it doesn't make much difference if you take it out, but I think it flows better with it.
better usage 
Linear Mode
