The Retail Industry Braces Itself For ‘Returnuary’

Ahh returnuary. The first month of the new year is when holiday returns prevail and customers and retailers fight to get back what they feel is due to them.

Per data from the National Retail Federation (NRF), January is traditionally the month that sees the most returns, to the extent that the month has been dubbed “returnuary.”

Returns are expected to reach $890 billion in 2024, representing 16.9% of all merchandise sales, per the report. This is an increase from 2023 when returns totaled $743 billion, or about 15% of retail sales. Typically, the holiday season sees an even higher rate of returns, with retailers anticipating a 17% increase above their typical return rates during this period.

What Does ‘Returnuary’ Mean for Customers?

‘Returnuary' — after the peak shopping season comes the busiest return month of the year https://t.co/Pf7l1Po31Y

— NBC10 Philadelphia (@NBCPhiladelphia) December 25, 2024

When it comes to this year’s returnuary, The Wall Street Journal reports that it won’t be as easy for customers to return items they previously purchased or received throughout the holiday season. While it was once easier to bring things back to the store or return them online, retailers are cracking down on these processes and customers are bearing the brunt of these changes if they don’t read the fine print of their return policies.

The news outlet cites chains such as Saks Fifth Avenue, Abercrombie & Fitch, and Zara, noting that they have “cracked down, adding return fees and shortening return windows.” In April, Saks began charging $9.95 for returns by mail. Additionally, Neiman Marcus charges a similar fee for clearance items and those returned after 15 days. These implementations are necessary for their bottom line, the brands say, as returns eat into their overall profits.

However, for shoppers, it is a headache that comes with purchasing online, the favored way most retailers boost their revenue. Customers often buy multiple sizes of items or physical stores may be out of stock, leading to multiple returns and hassles that don’t seem to be worth the bother.

Difficulties in returning items cause many shoppers to stray from making multiple purchases. Per The Wall Street Journal, “More than two-thirds of consumers who are aware of stricter return policies say those rules deter them from making purchases.” This data is up from 59% in 2023, according to a Blue Yonder survey of 1,000 U.S. adults from last July. Subsequently, in 2023, stores dealt with nearly 14% of retail returns that were fraudulent, up from 10.4% a year earlier, according to the NRF and Appriss Retail.