- Customers will now be charged £1.99 to return products.
- Boohoo blamed the rising cost of shipping.
- Soaring returns in May impacted Boohoo’s annual profits.
Online fashion retailer Boohoo has become the latest firm to charge shoppers for returning items.
Customers will now be charged £1.99 to return products. The decision came into effect on the 4th of July, and Boohoo blamed the decision on the rising cost of shipping. Damn inflation…
Boohoo has followed in the footsteps of fashion brands such as Uniqlo, Next, and Zara, who already charge for online returns. Hopefully, ASOS is not reading this.
Online retailers made significant gains during the pandemic. However, online purchases are more likely to be returned, and Boohoo commented in May that soaring returns were to blame for a slump in its annual profits.
Boohoo’s revenue dropped 8%, and inflationary pressures have impacted the company’s demand across 2022, with profit before tax declining 94% compared to 2021.
This is reflected in the retailers’ share price, which has fallen 55% this year.
Current demand trends for Boohoo are waning, and it’s clear that inflationary pressures and consumer spending are impacting the retail market.
UK retail sales have also declined, with the clothing industry falling from its previous highs in February.