UK retailers are losing up to £1.5bn potential sales because dishonest customers are returning products after using them, according to new research from Checkpoint Systems, a retail loss prevention product company. “Wardrobing” sees shoppers buy clothes, shoes and other items with the intention of using or wearing them before returning them to the retailer.
The study of 1,542 shoppers found that a fifth (22pc) buy items with the intention of using and returning them. This rises to 43pc of 16-24-year olds and 39pc of 25-34-year-olds, compared to just 6pc of over 55-year-olds, with retailers suspecting that social media is influencing the younger generation’s wardrobing habit. The research suggested that consumers purchase four items per year that they plan to use and return for a refund, with each item costing on average £40.95.
Clothing is the most ‘wardrobed’ item, followed by electronics and then shoes. And stores that fail to act against wardrobing could be the target of repeat offenders; more than a quarter of shoppers said they’d return to a store if they got away with using and returning items.
However, a simple solution could halve the cost of wardrobing for apparel retailers: the survey suggested that anti-tamper devices would deter 45pc of ‘wardrobers’, rising to 54pc of the worst offending 16-24-year-olds and half of 25-34-year-olds.
Earlier this year Checkpoint Systems announced the European launch of its R-Turn Tag to address wardrobing without putting off legitimate customers. The tag can be personalised with a retailer’s branding, logo, colours and messages for added shelf appeal, and enables retailers to reduce the number of fraudulent returns by remaining in place until the customer removes it at home.
Irene Fernandez Camin, Europe Business Development Manager at Checkpoint Systems said: “Wardrobing comes up increasingly regularly in our conversations with retail customers and this research really underlines how prevalent it is. However, there are simple measures retailers can take to drastically reduce fraudulent returns and send a message to dishonest customers that they are not an easy target.
“Retailers need to recognise that wardrobing is a huge problem – as this survey clearly indicates – and find the right solutions to protect their merchandise and ensure their stock is available for purchase by the majority of honest consumers, which is why effective tagging is essential. Retailers can amend their policies to state that returns are only accepted with devices like Checkpoint’s R-Turn Tag still in place, complete with attached instruction. This solution minimises fraudulent returns, without impacting the customer experience.
