Mademoiselleosaki.com — That’s it for impulse buys at H&M.
The next time you shop there, specifically online, and then regret bagging that crop top or those cheap ripped flared jeans, you may have to pay to return it.
The Swedish fast-fashion retailer said it is preparing to test merchandise return fees in some markets.
“It all depends on how the customer receives it. That’s why we do a test to see if that’s something to speed up,” H&M chief executive Helena Helmersson said during her latest earnings call with analysts on Thursday.
“If we are about to implement it, it will take some time,” he said. “We don’t have an exact time limit. But again, let’s see when we look at the evaluation of the evidence, whether this is the most shocking thing to do or not.”
In an emailed comment to CNN Business, the company said H&M will test a return fee in some of its markets “but it will only apply to online returns. If a customer returns a product that he bought online from the store, there is no fee.”
H&M, one of the biggest sellers of affordable fashion, said a host of challenges, including higher raw material and energy costs, a stronger dollar, exiting the Russian market amid the Ukraine conflict and a setback in consumer spending Consumers weigh on your business as you strive to implement cost-saving measures, such as establishing return fees.
Among other ways to cut costs, H&M said it is also looking at “how we buy services and how we set up our business when it comes to office and travel.” Prices have also risen, “but obviously not to fully offset severe supply headwinds,” Nils Vinge, head of investor relations at H&M, said during the call.
There could also be another reason to hit customers with return fees.
Retailers have too much inventory now that households are tightening their discretionary budgets.
They are desperate to get rid of things ranging from clothes, shoes and toys to gadgets and furniture because they are wasting loads of money on unsold products.
Product returns only add to this excess.
Industry experts say retailers are considering two options for dealing with returns: discourage them from making returns by charging them fees, or simply let customers keep things.
These tactics are smart and strategic, said Burt Flickinger, retail expert and managing director of retail consultancy Strategic Resource Group. “Retailers are stuck with excess inventory at unprecedented levels. They cannot afford to recover even more.”
Source: news.google.com