• Landing Page
  • Shop
  • Contact
  • Buy JNews
No Result
View All Result
Grabber Business
  • Home
  • World
  • Lifestyle
    Surprisingly Simple Skincare Tips That Will Help You Look Your Best

    Surprisingly Simple Skincare Tips That Will Help You Look Your Best

    Importance of a Restoration Company

    Importance of a Restoration Company

    Flower Delivery in Toluca, Mexico: Send Beautiful Flowers with abcFlora

    Flower Delivery in Toluca, Mexico: Send Beautiful Flowers with abcFlora

    How are large areas of land reforested?

    How are large areas of land reforested?

    What is the Rice Purity Test? What Does My Score Mean? Everything You Should Know

    What is the Rice Purity Test? What Does My Score Mean? Everything You Should Know

    What you need to know about the recent hair straightening lawsuits

    What you need to know about the recent hair straightening lawsuits

    Trending Tags

    • Pandemic
  • Business
  • Entertainment
  • Sports
  • Contact Us
  • Home
  • World
  • Lifestyle
    Surprisingly Simple Skincare Tips That Will Help You Look Your Best

    Surprisingly Simple Skincare Tips That Will Help You Look Your Best

    Importance of a Restoration Company

    Importance of a Restoration Company

    Flower Delivery in Toluca, Mexico: Send Beautiful Flowers with abcFlora

    Flower Delivery in Toluca, Mexico: Send Beautiful Flowers with abcFlora

    How are large areas of land reforested?

    How are large areas of land reforested?

    What is the Rice Purity Test? What Does My Score Mean? Everything You Should Know

    What is the Rice Purity Test? What Does My Score Mean? Everything You Should Know

    What you need to know about the recent hair straightening lawsuits

    What you need to know about the recent hair straightening lawsuits

    Trending Tags

    • Pandemic
  • Business
  • Entertainment
  • Sports
  • Contact Us
No Result
View All Result
Grabber Business
No Result
View All Result
Home NEWS

A ‘returns tsunami’ is about to deal a crippling blow to retailers

grabber admin by grabber admin
January 7, 2023
in NEWS
0
A 'returns tsunami' is about to deal a crippling blow to retailers

A 'returns tsunami' is about to deal a crippling blow to retailers

0
SHARES
4
VIEWS
Share on FacebookShare on Twitter
  • any retailers dealt with unusually high inventory levels in 2022, leading to big discounts during the holidays.
  • But those inventory issues haven’t been solved yet, one analyst says, and won’t be until later this year.
  • At the same time, retailers are bracing for a “returns tsunami” likely to hit in the next two weeks.
Top editors give you the stories you want — delivered right to your inbox each weekday.

A tidal wave of returns is about to hit retailers already dealing with excess inventory.

Inventory glut was the theme of 2022 for retailers ranging from Nike to Nordstrom to American Eagle. Quarter after quarter, retailers — particularly in the apparel space — reassured Wall Street that they were working through the mountains of extra product they’d accumulated in 2022, the result of cooling consumer demand combined with a hangover from tangled supply chains.

And while heavy holiday discounting may have helped, industry experts say retailers are months away from fully easing their inventory issues — and that it’s time to brace for a record number of returns.

A ‘returns tsunami’ could hit retailers in the next two weeks

The average consumer starts sending back holiday purchases in the first few weeks of January, which means retailers will start receiving them in another 10 to 14 days, according to Romaine Seguin, a former UPS executive and the CEO of Good360, a nonprofit that partners with retailers to donate returned items that can’t be resold.

“It’s the calm before the storm, because right now the storm’s with the UPS stores and whoever’s taking all the returns,” she said.

A December report from Insider Intelligence predicted that US shoppers would send back more than $279 billion worth of merchandise by the end of 2022, equivalent to 26.5% of consumer purchasing for the year.

For this holiday season specifically, Rob Garf, vice president and general manager of retail at Salesforce, predicted a “returns tsunami” with more than 1.4 billion, or 13%, of orders getting returned, up 57% from last year. Returns-technology platform Loops Returns found that merchants who use its platform processed 133,000 returns on December 26 and December 27 alone, 33% higher than in 2021.

“‘More returns than ever’ is the headline,” said David Sobie, vice president of Happy Returns, which helps process and consolidate returns for retailers.

Why so many? Sobie chalked it up to the “one-in-a-generation shift” from shopping in person to shopping online, which has led to people “bracketing” their purchases, meaning they buy more than one color or size of an item at a time and return what they don’t want. A November Happy Returns consumer survey found that a third of shoppers planned to bracket heading into the holidays.

Retailers have been dealing with high inventory since spring 2022

But even before this “tsunami” of returns hits, retailers were already dealing with too much inventory.

Products flew off the shelves in 2021 as shoppers, flush with stimulus money and craving a return to normalcy, drove over $6.5 billion in retail sales. Consumers were buying so much stuff that retailers placed bigger-than-usual orders for the following year. Combine those goods with all the product retailers ordered in 2021 that got stuck on a boat somewhere and arrived late, and by spring 2022, retailers were overrun with inventory — just in time for inflation to slow down consumer spending.

By September, retailers were “drowning in inventory,” D.A. Davidson retail analyst Michael Baker wrote in a note at the time, with total retail inventories up 22% year-over-year.

So when the holidays rolled around, bargains abounded. Discounts on toys topped 34%, compared to 19% in 2019, while discounts on electronics reached 20% versus 8% pre-pandemic, drawing in shoppers and “helping retailers who were challenged with oversupply issues,” Vivek Pandya, lead analyst at Adobe Digital Insights, said in a statement.

But according to Baker, even with all those discounts, retailers’ inventory troubles aren’t over quite yet.

“I think they’ve made progress, I think we’re getting there,” Baker told Insider. “But I think, on average, retailers won’t be fully through the excess inventory at the end of the fourth quarter. My assumption is by the back half of 2023, we’re not gonna be talking about inventory overhang anymore.”

 

 

Tags: cripplingreturns tsunami
Previous Post

How to Identify Electrical Burns?

Next Post

How to Improve Your Staff

grabber admin

grabber admin

Related Posts

How Often Should You Wash Your Clothes?
NEWS

How Often Should You Wash Your Clothes?

by grabber admin
June 2, 2023
6 Financial Planning Tips After a Pandemic
NEWS

6 Financial Planning Tips After a Pandemic

by grabber admin
June 2, 2023
Signs That The Roof's Been Affected Severely By Storm
NEWS

Signs That The Roof’s Been Affected Severely By Storm

by grabber admin
April 27, 2023
Fire Alarm System Fundamentals: How Does It Operate?
NEWS

Fire Alarm System Fundamentals: How Does It Operate?

by grabber admin
April 12, 2023
Home Design Institute, Paris: Your Gateway to Excellence in Interior Design
NEWS

Home Design Institute, Paris: Your Gateway to Excellence in Interior Design

by grabber admin
April 9, 2023
Next Post
How to Improve Your Staff

How to Improve Your Staff

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Premium Content

How to Get Approved for Payday Loans with a Bad Credit Score

How to Get Approved for Payday Loans with a Bad Credit Score

December 16, 2022
How To Take Your House Party to the Next Level

How To Take Your House Party to the Next Level

February 28, 2023
Top 8 Types of Influencer Marketing Campaigns

Top 8 Types of Influencer Marketing Campaigns

December 4, 2022

Browse by Category

  • Apps
  • BUSINESS
  • EDUCATION
  • ENTERTAINMENT
  • FASHION
  • GAMES
  • General
  • HEALTH
  • HOME IMPROVEMENT
  • LIFESTYLE
  • NEWS
  • Sports
  • TECH
  • Uncategorized
  • World

Browse by Tags

Advantages Apps benefits benefits program Business business insurance Calendar Camera Carpet CHORD GITAR Clothing Comeback Company Cost Difference Economy Employees Factors Fashion Fresh flowers Google help Home HR Functions Instagram interior design Investment iphone IT Job login lottery Microsoft mp3 NBA Net Worth Permadani Phone Reshape small business Smartphone Software TikTok Weight Loss Y2MATE

Categories

  • Apps
  • BUSINESS
  • EDUCATION
  • ENTERTAINMENT
  • FASHION
  • GAMES
  • General
  • HEALTH
  • HOME IMPROVEMENT
  • LIFESTYLE
  • NEWS
  • Sports
  • TECH
  • Uncategorized
  • World

Recent Posts

  • How Often Should You Wash Your Clothes?
  • 5 Reasons to Hire a Professional Carpet Installation Company
  • 6 Financial Planning Tips After a Pandemic

Copyright © 2020 Grabber Business. All Rights Reserved.

No Result
View All Result
  • Home
  • Landing Page
  • Buy JNews
  • Support Forum
  • Contact Us

Copyright © 2020 Grabber Business. All Rights Reserved.

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?
Go to mobile version