The holiday shopping season is typically followed by a spike in returns, known as 'Returnuary.' This year, retailers anticipate a 17% increase in returns compared to usual, amounting to a staggering $890 billion in returned goods. Several factors contribute to this trend, including consumers buying multiple sizes or colors and returning unwanted items, known as 'bracketing,' and 'wardrobing,' where purchases are made for specific events and then returned.
After this season's peak holiday shopping days, retailers expect their return rate to be 17% higher, on average, than usual. December's peak shopping days are closely followed by the busiest month for sending items back, which experts dub 'Returnuary.' This year, returns are expected to amount to 17% of all merchandise sales, totaling $890 billion in returned goods, according to a recent report.
Even though returns happen throughout the year, they are much more prevalent during the holiday season, the NRF also found. As shopping reaches a peak, customers got increasingly comfortable with their buying and returning habits and more shoppers began ordering products they never intended to keep. Nearly two-thirds of consumers now buy multiple sizes or colors, some of which they then send back, a practice known as 'bracketing.' Even more — 69% — of shoppers admit to 'wardrobing,' or buying an item for a specific event and returning it afterward, a separate report by Optoro found. That's a 39% increase from 2023. Largely because of these types of behaviors, 46% of consumers said they are returning goods multiple times a month — a 29% jump from last year, according to Optoro. 'With behaviors like bracketing and rising return rates putting strain on traditional systems, retailers need to rethink reverse logistics,' David Sobie, Happy Returns' co-founder and CEO, said in a statement. 54% of all packaging was recycled That presents a major challenge for retailers, not only in terms of the lost revenue, but also in terms of the environmental impact of managing those returns, said Rachel Delacour, co-founder and CEO of Sweep, a sustainability data management firm. 'At the end of the day, being sustainable is a business strategy.
RETURNS HOLIDAY SHOPPING RETAIL CONSUMER BEHAVIOR SUSTAINABILITY
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