Thursday, November 21, 2024

TikTok ‘shopping hauls’ leave retailers with £7bn in unwanted clothing

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Younger shoppers are more likely to be “serial returners”, according to the research from Retail Economics and returns specialist ZigZag.

A survey found that 69pc of Gen Z consumers over-ordered on sizes or colours and then returned unwanted items. This compares to just 16pc of baby boomers.

Richard Lim, chief executive of Retail Economics, said: “Serial returners are quietly eroding retail profitability in ways many retailers are only just beginning to understand. 

“The rise of opportunistic shopping behaviours, where many people intentionally buy large quantities of goods with the intention of returning most of them, is placing an unprecedented strain on retailers.”

Asos early last year said frequent returners were costing it £6 per order, with some of those customers ordering two or three times a month and returning as much as 90pc of what they received.

The company is among those which has launched a crackdown on these customers. 

This month, Asos introduced new returns fees for customers who were returning large numbers of orders. It said customers who frequently returned items had to pay a fee of £3.95 to send items back if they kept less than £40 worth of their order. 

Others including Boohoo, H&M and Zara have also introduced charges for returns. 

Mr Lim said retailers were under pressure to “urgently rethink their approach” to managing returns. 

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