Related video above: Fraudulent emails use names of major retailers. Too bad for impulse purchases at H&M. The next time you shop there, especially online, and then regret bagging that crop top or cheap ripped flare jeans, you may have to pay to return them. The Swedish fast-fashion seller said it was preparing to test return shipping costs on goods in certain markets. Helena Helmersson, CEO of H&M, said on her final earnings call with analysts on Thursday. “If we’re close to rolling it out, it will take time,” she said. have no exact time limit. But again, let’s see when we see the evaluation of the tests, whether it’s the most impactful thing to do or not.” In an emailed comment to CNN Business, the company said H&M will test return costs in a few of its markets” but this will only apply to online returns. If a customer returns a product purchased online in-store, there is no charge.” H&M, one of the biggest sellers of affordable fashion, said a host of challenges – such as rising costs commodities and energy, a stronger dollar, exiting the Russian market amid the Ukraine conflict and a pullback in consumer spending – are weighing on its business as it strives to implement recovery measures. cutting costs, such as setting a return fee. Among other ways to cut costs, H&M said it was also assessing “how we buy services for how we set up our business in terms of offices and travel.” Prices also rose, “but obviously not entirely to offset severe supply headwinds,” Nils Vinge, head of investor relations at H&M, said on the call. There could also be a Another reason to hit customers with return fees. stuck with 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 lose tons of money on unsold products. Product returns only add to this glut. Industry experts say retailers are considering two options for handling returns: deterring them from making returns by charging them a fee, or simply letting customers keep the returns. things. These tactics are smart and strategic, said Burt Flickinger, retail expert and managing director of retail consulting Strategic Resources Group. “Retailers are stuck with excess inventory at an all-time high. They can’t afford to take back any more.”
Related video above: Fraudulent emails use names of major retailers
So much for impulse shopping at H&M.
The next time you’re shopping there, especially online, and you regret picking up that cheap crop top or ripped flare jeans, you might have to pay to return them.
The Swedish fast-fashion seller said it was preparing to test return shipping costs on goods in certain markets.
“It all depends on how it’s received by the customer. That’s why we’re doing a test to see if it’s something to speed up,” H&M CEO Helena Helmersson said in her latest conference call with consumers. analysts Thursday.
“If we are close to rolling it out, it will take time,” she said. “We don’t have an exact time limit. But again, let’s see when we see the evaluation of the tests, whether that’s the most impactful thing to do or not.”
In an emailed comment to CNN Business, the company said H&M will test a return fee in a few of its markets “but this will only apply to online returns.” If a customer returns a product purchased online in-store, there is no charge.
H&M, one of the biggest sellers of affordable fashion, said a host of challenges – such as rising raw material and energy costs, a stronger dollar, exiting the Russian market in the middle of the conflict in Ukraine and a decline in consumer spending – are weighing on its business as it strives to implement cost-cutting measures, such as setting return fees.
Among other ways to cut costs, H&M said it was also assessing “how we buy services to how we set up our business in terms of offices and travel.” Prices have also risen, “but obviously not entirely to offset severe supply headwinds,” Nils Vinge, head of investor relations at H&M, said on the call.
There could also be another reason for hitting customers with return charges.
Retailers are stuck with 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 lose tons of money on unsold products.
Product returns only add to this glut.
Industry experts say retailers are considering two options for handling returns: deterring them from making returns by charging them a fee or simply letting 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 an all-time high. They can’t afford to take back any more.”
