1. News
June 17, 2022

boohoo considering charging UK customers for product returns

The retailer reported that its revenue dropped by 8% to £445.7m ($549.01m) for the three months to 31 May.

British online fashion retailer boohoo is planning to charge its UK customers a fee for returning merchandise, Bloomberg has reported.

Free Whitepaper
img

What is the impact of historically high inflation on the UK consumer landscape?

The average UK consumer is experiencing a severe cost-of living crisis as inflation surges to a forty-year high and the price of goods continues to rise. This shock is the result of the sharply increasing costs of commodities, energy, and the ongoing conflict in Ukraine, and is threatening FMCG manufacturers, retailers, and foodservice operators’ ability to survive and grow. Inflation will have a profound effect on many consumer-facing industries in 2022 and beyond. Consult GlobalData’s new whitepaper, Inflation in the UK: The Impact of Historically High Inflation on the UK Consumer Landscape, to better understand shifts in consumer behavior and their impact on spending patterns, as well as the implications for UK businesses. This whitepaper covers:  
  • Why has global inflation returned with a vengeance?
  • What is the current inflation situation in the UK?
  • What impact is inflation having on UK retail sales?
  • What tactics are businesses relying on to tackle the effects of high inflation?
  • How are consumers changing their behaviors to cope with the higher cost of living?
  • Which industry sectors are most vulnerable to reduced consumer demand?
  • How is the government responding to high inflation?
  • How long will high inflation last in the UK?
  • How can your company survive and thrive in a high inflation environment?
Enter your details here to receive your free whitepaper and ready your business for these increasingly uncertain times.
by GD50 Custom
Enter your details here to receive your free Whitepaper.

The development comes after the company’s latest trading update showed its revenues declined by 8% in the three months to May amid a rebound in ‘normal’ shopping habits.

boohoo is currently reviewing its returns policy across all markets. It already charges customers for returns in some international markets and is currently considering introducing the same policy in the UK and elsewhere.

Founded in 2006, the company sells menswear, womenswear, shoes and other accessories.

Bloomberg quoted boohoo CFO Neil Catto as saying: “In the UK, the returns rate is a big factor and in international it’s taking us a lot longer to get parcels to customers.

“Those factors still continue and we’re not expecting those to improve this year.”

The review comes after Inditex, the owner of clothing retailer Zara, recently began charging fees for online returns in an effort to drive traffic to its brick-and-mortar stores.

Bloomberg noted that boohoo has many younger customers, who tend to buy several low-priced items before deciding which items to keep and which to return.

For the three months to 31 May, boohoo’s revenue amounted to £445.7m ($545.7m). In the UK, its quarterly revenue fell by 1%.

Boohoo CEO John Lyttle said: “We have seen promising signs from the Group’s sales performance in the UK, which has improved month-on-month in the period and we are looking ahead towards our key summer trading season as holidays ramp up and customers look to the latest fashion from across our brands.

“Looking forward, we will continue to focus on optimising both our financial and operational performance to ensure the business is well placed to take advantage of future growth opportunities.”

Free Whitepaper
img

What is the impact of historically high inflation on the UK consumer landscape?

The average UK consumer is experiencing a severe cost-of living crisis as inflation surges to a forty-year high and the price of goods continues to rise. This shock is the result of the sharply increasing costs of commodities, energy, and the ongoing conflict in Ukraine, and is threatening FMCG manufacturers, retailers, and foodservice operators’ ability to survive and grow. Inflation will have a profound effect on many consumer-facing industries in 2022 and beyond. Consult GlobalData’s new whitepaper, Inflation in the UK: The Impact of Historically High Inflation on the UK Consumer Landscape, to better understand shifts in consumer behavior and their impact on spending patterns, as well as the implications for UK businesses. This whitepaper covers:  
  • Why has global inflation returned with a vengeance?
  • What is the current inflation situation in the UK?
  • What impact is inflation having on UK retail sales?
  • What tactics are businesses relying on to tackle the effects of high inflation?
  • How are consumers changing their behaviors to cope with the higher cost of living?
  • Which industry sectors are most vulnerable to reduced consumer demand?
  • How is the government responding to high inflation?
  • How long will high inflation last in the UK?
  • How can your company survive and thrive in a high inflation environment?
Enter your details here to receive your free whitepaper and ready your business for these increasingly uncertain times.
by GD50 Custom
Enter your details here to receive your free Whitepaper.