Boohoo mulls charging UK shoppers for returns

Bloomberg

Boohoo Group Plc is considering charging customers to send back garments as an increasing rate of returns crimps sales at the fast-fashion retailer.
The British firm, whose business is purely online, is looking at returns across all markets, Chief Executive Officer John Lyttle said, at a time when many retailers are trying to manage logistics costs. While Boohoo already charges in some international markets, the move would be a first in some places, including the UK.
The company is weighing possible changes after Zara owner Inditex SA recently imposed fees for online returns to tempt customers into its brick-and-mortar stores. Lyttle said a number of sellers are beginning to charge shoppers who send back goods.
Boohoo and Asos Plc both reported slowing sales as the retailers — which saw demand surge during pandemic lockdowns — contend with the return of normal shopping habits and persistent supply chain woes. Shares of both companies plunged. When slashing its guidance for the year, Asos said that a significant rise in returns in the UK and Europe had hurt net sales. It added that returns are having a “disproportionate impact on profitability.”
Changing its returns policy could be significant for Boohoo, which has many young customers who tend to buy a number of low-priced items and then decide what to keep or send back.