‘Returns Tuesday’ set to follow Black Friday and Cyber Monday

New data from Advanced Supply Chain and sister company ReBound Returns found that Black Friday and Cyber Monday will trigger the start of Christmas gift shopping for many consumers. 43% admitted they are waiting for money-off promotions before they start spending, with around two thirds (63%) holding out for discounts of at least 20%. Nearly 1-in-10 (8%) will wait for products to hit half price before spending.

The good news for retailers is that around a quarter (24%) of shoppers plan to spend more on Christmas gifts this year, while 45% think they will spend about the same as last year on presents. Around a third of consumers (32%) will spend between £100 – £300 on Christmas gifts, with 22% expecting to splash out £500 or more on treating friends and family.

Ben Balfour, managing director at Advanced Supply Chain, said: “Shoppers are planning to spend this Christmas but continue to be driven by value. Households remain concerned about living costs and tight disposable incomes but will be keen to celebrate Christmas. This is why money-off deals will really appeal to shoppers and could possibly drive a flurry of sales around Black Friday and Cyber Monday promotions and last-minute shopping throughout December.

“Retailers must work hard to find a balance between achieving optimum selling prices and knowing when to make discounts. This requires accurate and accessible supply chain data, which can be used to create models that determine prime times for price cuts to avoid being left with excessive stock and to also avoid going too early with discounting.”

Returns Tuesday

Although shoppers look set to take advantage of Black Friday bargains and Cyber Monday price cuts, they won’t keep hold of all their purchases. The YouGov Survey of 2,000 consumers also found nearly a third of shoppers (29%) admit to returning items they’ve bought after being influenced by heavy discounts. A quarter of consumers blamed an impulse purchase being the reason for returns.

Festive occasions drive a spike in returns, with 28% of those that admit to buying outfits for ‘one-off wears’ doing so for Christmas parties and 15% have returned their ‘Christmas Jumper Day’ jumpers, while 28% have returned their work Christmas party outfit.

Nearly four in ten “one-off-wear” shoppers (38%) admit to buying clothing and accessories during the festive season, with the intention of returning it after they’ve worn it. What’s more, 19% cheekily changed their mind about what they’d bought, after seeing photos of themselves wearing outfits and not liking how they looked, with goods then returned to retailers.

Ben Balfour added: “It usually takes just a few minutes for shoppers to decide on what products they’re sending back, and then a couple of days to package up and return goods. The first weekend after Black Friday and Cyber Monday is when shoppers will have free time to package up and send back the items they bought on promotion and don’t want to keep. Most of these products are likely to arrive back at warehouses on Tuesday 10th December, Returns Tuesday.

“The challenge for retailers is to quickly and effectively quality check returns and process these for resale. They will have a larger-than-usual volume of returns to work through and if these products are sat in warehouses uninspected, they aren’t on sale. This means retailers are losing shopping days and sales opportunities, as they count down to Christmas.

“An effective returns service is crucial to keeping hold of shoppers, so that an item being sent back doesn’t mark the end of their purchasing journey with a retailer. If a return is made quick and easy for shoppers, and they receive a speedy refund, they are more likely to shop again with the same retailer in the run-up to Christmas, during the Boxing Day sales and January sales, and well into 2025.”