Shoppers Suffer From Black Friday Regret As Return Rates Snowball
UK high street retailers experienced a 32% boost in consumer spending on Black Friday, but they can now expect a 40% increase in returns
UK retailers are being asked to brace themselves for a surge of returned goods, as shoppers regret their Black Friday purchases – according to a report by Worldpay.
Their analysis of transaction data processed between 19 November 2015 and 19 January 2016, revealed that the total number of refunds processed by shops increased by 40% following the discount period – with businesses told to expect the same this year.
Despite shopkeepers’ reluctancy to offer a return for reasons of change of mind, they are highly advised to – as a survey of 1,999 consumers suggests that 63% of shoppers are more likely to buy from retailers who have a no quibbles returns policy.
UK high street stores received a 32% boost in retail spending on Black Friday alone, with the level of discounting 77% higher than last year, according to research from Vend.
Year-on-year retail spending jumped the most in Manchester (+115%) followed by Glasgow (81%) and Edinburgh (45%).
An analysis of consumer spending methods by PayPal on Black Friday and Cyber Monday revealed the importance for businesses to offer the option of mobile payments.
One third of all transactions on Black Friday were made via mobile, with use of such a method experiencing 50% year-on-year growth on Cyber Monday.
Dave Hobday, UK managing director of Worldpay said:
“Returns have always been part and parcel of the retail experience over the Christmas period, but the increased trend we’re seeing as a result of impulse-purchasing around Black Friday and Cyber Monday is adding a new level of complexity for retailers.
“High returns can turn into a logistical and operational headache for retailers, many of whom use Black Friday sales as a way of clearing stock in time for Christmas. But retailers can turn this additional level of interaction to their advantage, building goodwill and future loyalty by ensuring the refunds process is as quick, friendly and painless as possible, and even using it as an opportunity to upsell.”