Consultation Paper and Two Practice Statements Released by Takeover Panel for Public M&A

The world of online retail has seen significant growth in recent years, with more and more consumers opting to shop online for convenience and accessibility. With this surge in online shopping, there has also been an increase in the number of returns that retailers have to manage. One way that retailers are trying to tackle the issue of returns is by implementing a process known as “wardrobing.”

Wardrobing is a practice where customers purchase items with the intention of using them temporarily and then returning them for a refund. This behavior is becoming more common, especially in the fashion industry where customers may buy clothing for a special event and then return it after wearing it. The rise of wardrobing has put a strain on retailers, who have to deal with the cost of processing returns and the impact on their bottom line.

To combat wardrobing, some retailers are taking steps to deter customers from engaging in this behavior. One strategy is to impose stricter return policies, such as limiting the time frame in which returns can be made or charging restocking fees for returned items. By making it more difficult and less attractive for customers to engage in wardrobing, retailers hope to reduce the number of returns they have to process.

Another approach that retailers are taking is to use technology to track customer behavior and identify patterns that may indicate wardrobing. By analyzing data such as the frequency of returns, the types of items being returned, and the reasons for returns, retailers can pinpoint customers who are engaging in wardrobing and take appropriate action.

In addition to implementing stricter return policies and using technology to identify wardrobing behavior, retailers are also focusing on improving the overall shopping experience for customers. By providing detailed product descriptions, size guides, and customer reviews, retailers aim to reduce the likelihood of customers needing to make returns due to dissatisfaction with their purchases.

Overall, wardrobing is a growing concern for retailers as they try to balance customer satisfaction with the costs associated with processing returns. By implementing strategies to deter wardrobing, such as imposing stricter return policies, using technology to track customer behavior, and improving the shopping experience, retailers hope to reduce the impact of wardrobing on their businesses. As the world of online retail continues to evolve, finding ways to effectively manage returns and deter wardrobing will be crucial for retailers looking to thrive in a competitive market.