What began during the pandemic as a solution for customers navigating the absence of in-store shopping and fitting rooms has evolved into a significant logistical challenge.
As we reported on last week, February sales in the furniture, mattress, and footwear industry saw some impressive improvement compared to last year. But these improvements are overshadowed by returns that loom around the corner.
Join us this week as we dive into the signals discovered from February data and the pandemic-born trends that are causing trouble for retailers left and right.
Today’s Rundown
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- Predictions: What will retail look like in five years? Top industry executives share their predictions.
- Dynamic shoppers: Future trends that will shape consumer behavior and retail operations.
February Sales signal change
As we reported on last week, February sales in the furniture, mattress, and footwear industry saw some impressive improvement compared to last year.
According to NRF, retail industry as a whole (excluding automotive and gasoline), sales were up 1.06% YOY, and compared to January, sales were up 6.3%
Sporting goods, hobby, music and book stores saw the biggest month over month improvement with a 2.29% increase. On the other hand, building and supply stores saw the smallest change with only 0.01% change in month over month sales.
We are seeing a positive trend as consumers continue to buy non-essential items such as electronics, hobby items, and accessories. Overall, retail sales indicate continued momentum for consumers.
How bracketing trends are reshaping retail strategies
What started during the pandemic as a way for consumers to get around the lack of in-store shopping and dressing rooms, has turned into a major logistical nightmare.
Sometimes called “try-on hauls”, bracketing is the process of purchasing multiple sizes and colors of items with the intention of returning what doesn’t fit. On average, this trend cost retailers $25 per parcel when accounting for shipping, warehousing, and repackaging.
An easy solution would be to charge for returns, which retailers such as Zara and H&M have recently began to implement. WehKamp, a dutch retailer, saw return rates drop by 10% from 50,000 returns every day, to 45,000 after implementing a return fee.
Although return fees may reduce the amount of returns, it has also proven to be a factor that deters consumers for purchasing.
Retail Trends
Predictions: What will retail look like in five years? Top industry executives share their predictions.
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Dynamic shoppers: Breaking down the retail trends and fears in 2024.
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