A Hidden Value in Free Returns
Reverse logistics are margin killers for many e-commerce players. This has prompted a growing number to put an end to free returns.
Turns out, free returns not only reduce friction at checkout, they also drive loyalty, per a recent study by SAP Emarsys.
- 72% of US shoppers are more loyal to retailers that offer free returns.
- 88% of US consumers have stopped shopping with a retailer because of a paid returns policy being introduced.
- 54% actively avoid retailers that charge to return items.
FINANCE
Abercrombie & Fitch (USA) now expects fourth-quarter revenue will rise by a “high-teens” percentage, up from its previous estimate of a low-double-digit percentage gain.
American Eagle (USA) raised its fourth-quarter guidance from high single-digit to low double-digit growth on record holiday sales and strong merchandise margins. It indicated that as of Dec. 30, quarterly revenue was up 8%.
Crocs (USA) said it expects sales to grow 1% year-over-year in Q4, surpassing its November forecast that Q4 sales would decline between 1% and 4%. The company estimated that full-year sales would rise 11% year-on-year to reach a record $3.95 billion.
Sosandar (UK) said sales in the recent quarter hit a record £14.3 million ($18.2 million), up 23%. The retailers said all categories sold strongly, especially party wear, dresses, knitwear and smart trousers.
Aritzia (Canada) reported Q3 net revenue rose 5% to $654 million. Net income decreased 39.1% to $43.1 million.
The Very Group (UK) reported a 3.4% increase in sales in the lead-up to Christmas, reversing a decline of 1.3% a year earlier.
Paul Smith (UK) said that revenue rose by 7.7% to £212.5 million ($280 million) in the year to June 30 2023, reaching pre-pandemic levels. The retailer had a pre-tax loss of £2.3 million ($2.9 million).
Burberry (UK) said that revenues fell 7% to £706 million ($900 million) in the 13 weeks to December 30. Same-store sales fell 4%.
Wolverine World Wide (USA) has sold its Sperry brand to Authentic Brands Group, Inc., and the ALDO Group. The sale will generate total proceeds of approximately $130 million in the first quarter to pay down debt, Wolverine said.
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TRENDING NOW
Diamonds Are Forever
A growing number of designers and brands have realized that in order to drive sales garments need to have something special – something that literally makes them sparkle on the selling floor. Download the trend
PODCAST
How Every Child Can Be an A+ Student
Children (and parents) are usually enthusiastic as the new semester gets started.
Yet many children hit speed bumps during their early school years. For some children it’s trying to master math. For others it could be tackling spelling and grammar – or reading.
What seems like something that should be easy to achieve ends up being a source of daily angst for both the students – and their families.
In this podcast, Dawn Strachan, an expert in early child development and the author of “Square Pegs, Round Holes”, talks about simple ways to help children overcome learning blocks so they can achieve academic success.
You’ll Learn:
- What parents and teachers might be overlooking when they have a child who is struggling in school.
- Easy ways to gamify learning that take your child from ‘I can’t’ to ‘Yes, I can!’
- Why often it’s not the student, it’s the teaching method that is the problem.
RETAIL
REI Coop (USA) said it plans to open 10 new stores this year.
Rent The Way (USA) said it will cut 10% of its corporate workforce.
MARKETS
UK retail sales increased only 1.7% in December year-on-year, against a growth of 6.9% in December 2022, as Britons spent more on going out and holidays, according to the British Retail Consortium.
- The December increase was below the 3-month average of 2.3% and fell short of the 12-month average growth of 3.6%.
- Consumer credit card spending increased by 2.3% year on year in December, however inflation was at 3.7%, per Barclaycard data.
- Spending on clothing fell 2% in December, likely a result of early promotions that shifted sales into November.
Amazon (USA) is cutting hundreds of jobs at its Prime Video and MGM Studios units as it re-evaluates its spending priorities to improve the “long-term success of our business.” This includes 500 jobs at its Twitch streaming service.
Google (USA) has announced hundreds of layoffs as part of a cost cutting initiative.
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