What's Happening?
Recent research from ZigZag, a returns and post-purchase specialist, indicates a significant reduction in the number of 'serial returners' within the UK retail sector. The percentage of consumers frequently
returning items has decreased from 12% to 8%, resulting in a forecasted savings of £1.7 billion for retailers in 2025. This decline comes as retailers implement changes to their returns policies, aiming to encourage more conscious purchasing. Brands such as Asos and Next have introduced measures targeting high-frequency returners, while 76% of the UK's largest retailers have implemented returns fees or withheld delivery refunds. The fees typically range from £2.50 to £2.95, marking a shift in consumer expectations as 71% of shoppers previously anticipated free returns.
Why It's Important?
The reduction in serial returners is a significant development for the retail industry, as it addresses a costly issue that previously amounted to £6.6 billion in losses. By implementing targeted returns policies, retailers are not only saving money but also influencing consumer behavior towards more mindful purchasing. This shift is particularly relevant for Gen Z and Millennial shoppers, who are willing to pay returns fees up to £2.10, compared to £1.50 for older consumers. The changes in returns policies could lead to increased customer loyalty and reduced operational costs, providing a competitive advantage for retailers who successfully balance cost control with customer satisfaction.
What's Next?
Retailers are likely to continue refining their returns policies to further curb the impact of serial returners. As consumer expectations evolve, companies may explore more personalized approaches to returns, such as segmented policies tailored to shopping behavior. Additionally, retailers with national store estates, like Next and H&M, are encouraging in-store returns, which remain free, while charging for postal returns. This strategy could further reduce the financial burden of returns and enhance customer experience by promoting in-store engagement.
Beyond the Headlines
The shift in returns policies highlights broader ethical and cultural implications within the retail industry. As companies draw a line between loyal customers and those exploiting the system, there is a growing emphasis on responsible consumerism. This trend may lead to long-term changes in shopping habits, encouraging consumers to make more deliberate purchasing decisions and reducing waste associated with frequent returns.
