Recent trends in viral ‘shopping hauls’ contribute significantly to the rise in online returns, posing economic challenges for retailers.

• Social media platforms, notably TikTok, popularise ‘shopping hauls’ where users model items and solicit audience feedback on purchases.
• The increase in returns, predominantly driven by Gen Z shoppers, is estimated to cost UK retailers nearly £7bn annually.
• Retailers struggle with ‘serial returners’ who account for a considerable portion of online return rates, impacting profitability.
• In response to these challenges, retailers are instituting measures like return fees to mitigate the financial burden.

In an analysis of current retail trends, the phenomenon of viral ‘shopping hauls’ on social media is seen as a major driver of increased online returns. Users showcase their purchases on platforms like TikTok, generating an interactive dialogue about which items to retain. Such practices have encouraged a significant portion of consumers to engage in return behaviours, contributing to an estimated annual £7bn in unwanted clothes being returned to UK retailers.

The trend is further propelled by ‘serial returners,’ individuals who frequently buy products with the intent to return them after minimal use. According to new data from Retail Economics, this group is responsible for approximately £6.6bn of returns, reflecting persistent shopping patterns that favour excessive ordering and returning. This not only reflects a shift in consumer behaviour but implicates considerable economic implications for the retail sector.

Gen Z shoppers are at the forefront of this shopping behaviour shift, with over two-thirds admitting to excessive online purchases. They often over-order different sizes or colours, planning to return the surplus. In contrast, only 16% of baby boomers exhibit similar habits. Richard Lim, chief executive at Retail Economics, remarked on this trend, noting its potential to undermine retail profitability as retailers grapple with understanding its full impact. As these consumer behaviours become more prevalent, they impose unprecedented pressures on the retail market.

To combat the financial strain of increasing returns, many retailers, including major online fashion entities, have started implementing fees for returns. For instance, a prominent online retailer recently introduced a £3.95 charge for returns unless customers retain a minimum of £40 worth of merchandise. This strategy is aimed at discouraging opportunistic purchasing and returning while attempting to maintain profit margins amid changing consumer dynamics.

The ongoing influence of social media-driven shopping behaviours necessitates innovative solutions from retailers to manage the economic fallout effectively.