Core Insights - UK retailers are projected to face a £1.05 billion returns challenge post-Christmas, with an estimated 52 million gifts expected to be returned [1] - The overall return rate has decreased from 43% to 33% year-on-year, but the total value of returns remains significant, with an average returned gift valued at £57 [1] Retailer Challenges - The scale of returns places immense logistical and financial pressure on retailers, highlighting the importance of effective returns management to build long-term customer trust and loyalty [2] - Retailers are experiencing a clash between consumer expectations for seamless and free returns and the operational realities of processing returns and managing inventory [7] Shopping Trends - There is a notable shift towards hybrid shopping, with 31% of consumers planning to shop half in-store and half online, and 26% intending to shop mostly in-store but partly online [2] - Only 5% of consumers plan to do all their shopping online, indicating a rebound from the post-COVID e-commerce surge [2] Generational Differences - A significant generational divide exists in shopping and returns behavior, with 23% of those aged 65+ planning to shop entirely in-person compared to only 10% of those aged 18-24 [3] - Older consumers (65+) are less likely to return gifts, with 87% not returning any gifts last Christmas, while 53% of shoppers aged 18-24 admitted to returning at least one gift [6] Returns by Product Category - Clothing and footwear are the most returned items, with 39% of consumers returning clothing and 37% returning shoes/footwear [3] - The return rate for footwear has surged from 21% to 37%, while jewellery/watches and cosmetics also feature prominently with a 12% return rate each [3] Customer Experience Preferences - A strong preference for human store associates over digital assistants exists, with 81% of consumers favoring human support for returns, primarily due to trust [5] - The findings emphasize the need for a blended approach in customer experience, where technology complements rather than replaces human interaction [5]