What's Happening?
New 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 is attributed to targeted changes in returns policies by retailers, which aim to encourage more conscious purchasing. Companies like Asos and Next have implemented measures to address high-frequency returners, while 76% of the UK's largest retailers have introduced returns fees or are withholding delivery refunds. Despite the reduction in serial returners, there has been an increase in occasional and slow returners, with some consumers keeping unwanted items longer due to limited incentives for quick returns.
Why It's Important?
The reduction in serial returners is a significant development for the retail industry, as it addresses a major financial burden. By saving £1.7 billion, retailers can potentially reinvest in other areas of their business, such as improving customer service or expanding product lines. The shift in returns policies also reflects a broader change in consumer behavior, with more shoppers willing to pay for returns, particularly among Gen Z and Millennials. This trend could lead to a more sustainable retail environment, as consumers become more mindful of their purchasing decisions. However, the introduction of returns fees may also impact consumer satisfaction and loyalty, particularly among price-sensitive shoppers.
What's Next?
Retailers are likely to continue refining their returns policies to balance cost control with customer satisfaction. As consumer expectations evolve, companies may explore new strategies to incentivize in-store returns, which remain free, while managing the costs associated with postal returns. The industry may also see further segmentation of returns policies, tailored to different shopping behaviors, as brands like Asos and New Look are currently trialing. Additionally, retailers will need to monitor the impact of these changes on customer loyalty and adjust their approaches accordingly.
Beyond the Headlines
The shift in returns policies highlights a broader cultural change in consumer expectations and behavior. As more retailers implement fees and restrictions, consumers may become more discerning in their purchasing decisions, potentially leading to a decrease in impulse buying. This could have long-term implications for the retail industry, as companies adapt to a more conscious consumer base. Furthermore, the ethical considerations of returns policies, such as fairness and transparency, may become increasingly important as consumers demand more accountability from retailers.
