UK shoppers set to splurge this Christmas – but damaged parcels impact retailer profits and cost UK £2.5bn

Core Insights - British shoppers are expected to spend a record £91.12 billion this Christmas, indicating a strong festive season despite challenges with damaged parcels impacting retailer profits [1][7]. Group 1: Impact of Damaged Deliveries - Nearly one in four UK shoppers (23%) received a damaged parcel in the past year, affecting over 12 million consumers [1]. - Four in five retailers (81%) report that damaged deliveries are a significant issue for their business, with 32% noting a negative impact on brand reputation [2]. - The average monthly cost for UK retailers managing replacements and returns due to damage is £7,646, highlighting the financial burden of damaged deliveries [2]. Group 2: Consumer Behavior and Costs - More than half (51%) of consumers would be less likely to shop with a retailer again after receiving a damaged item, despite 81% understanding that damage may be beyond the retailer's control [3]. - The average cost to consumers per damaged item is £82.30, contributing to a total annual damage bill exceeding £2.5 billion, an increase from £2.3 billion the previous year [3]. - The top categories for damaged products include household goods (30%), food and drink (26%), and health and beauty (20%) [3]. Group 3: Solutions and Innovations - DS Smith has developed an industry-leading testing process for e-commerce packaging called DISCS, which simulates the stresses of the e-commerce supply chain to improve packaging reliability [4]. - The company emphasizes the importance of protecting deliveries during the peak shopping season, urging retailers to focus on the final step of the customer journey [4][5]. - Ashwin Moorthy from DS Smith highlights that effective design, rigorous testing, and continuous innovation are key to minimizing damage and associated costs [6].