Viral ‘shopping hauls’ on social media are influencing an increase in online clothing returns, leading to significant financial impacts on UK retailers. This trend reflects changing consumer behaviours driven by platforms like TikTok.
- Social media platforms are fueling a surge in returns.
- ‘Shopping hauls’ encourage consumers to deliberate purchases.
- Gen Z predominantly influences this return culture.
- Retailers are beginning to implement return fees to mitigate losses.
- The phenomenon poses long-term challenges for retail profitability.
Viral ‘shopping hauls’ shared on social media platforms such as TikTok are causing a substantial increase in online returns, significantly impacting UK retailers financially. Retailers are experiencing nearly £7 billion in returns annually, attributed to consumers trying items at home and returning those they do not wish to keep.
This trend, particularly prevalent among younger consumers, involves sharing videos of clothing purchases and seeking advice on items to retain or return. The hashtag #KeepOrReturn has garnered more than 11 million videos. This peer-influenced purchasing behaviour results in a substantial portion of clothing being sent back to stores.
Surveys indicate that over two-thirds of Gen Z consumers admit to ordering multiple sizes or colours of an item with the intention of returning what they do not need. By contrast, this behaviour is less common among older generations, with only 16% of baby boomers engaging similarly.
According to Richard Lim, CEO of Retail Economics, this opportunistic shopping pattern is a substantial strain on retail profitability. He states, ‘Serial returners are quietly eroding retail profitability in ways many retailers are only just beginning to understand.’
Retailers have begun responding to this issue by implementing fees for frequent returners. For example, a major online fashion retailer recently introduced a £3.95 fee for high-return customers, unless they maintain a minimum of £40 in purchases. This move is an attempt to disincentivize excessive returns and preserve their profit margins.
The ongoing trend of ‘shopping hauls’ on social media continues to present a significant challenge to the sustainability of retail profitability in the UK.
